On February 8th, the State Administration for Financial Regulation issued the “Guidelines for the Supervision of Concentration Risk in Insurance Groups”, in which insurance group companies establish emergency and mitigation management mechanisms for concentration risk, clarify the division of responsibilities, emergency management procedures, risk mitigation tools, and other regulatory requirements for various types of concentration risk emergency management. When various concentration risks have occurred or are expected to occur, which may have a significant impact on the group’s liquidity, solvency, reputation, etc., insurance group companies must develop emergency management and risk mitigation plans and strictly implement them to effectively control and mitigate risks. Insurance groups should hold sufficient capital and liquidity buffers for concentration risk.
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