China’s National Financial Regulatory Administration on Saturday issued guidelines for insurance groups to manage “concentration risks,” asking insurers to hold sufficient capital and liquidity buffers.
The guidelines asked insurers to formulate a concentration risk management strategy and mitigation mechanisms and hold the board of directors of an insurance group company responsible for concentration risk management.
Companies should establish a concentration risk information disclosure mechanism and disclose annual concentration risk management information on their websites before June 15 each year, the regulator said.
The disclosure should include the concentration risk management organizational system, management strategies and their implementation, risk status, and major concentration risk events, it said.
(Reporting by Mei Mei Chu and Tang Ziyi; editing by Mark Potter)
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