On February 8th, the State Administration for Financial Regulation issued the “Guidelines for the Supervision of Concentration Risk in Insurance Groups”, stating that member companies of insurance groups should avoid excessive reliance on specific assets, counterparties, customers, regions or markets, and fully analyze and judge the potential impacts of specific industries that are susceptible to macroeconomic policies and economic cycle fluctuations. For those who exceed the concentration risk limit due to market price changes or other reasons, they should be reported or approved according to relevant regulations, and an effective limit management mechanism should be established. Risk analysis of limit exceeding situations should be strengthened, necessary risk diversification measures should be taken, and risk resolution and disposal should be carried out in a timely manner.
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