China’s insurers improve risk management performance

Written by Adam Cadle

29/01/2024

Chinese insurance companies generally improved their risk management performance in 2023, China’s National Financial Regulatory Administration (NFRA) has revealed.

Last year, the State Administration of Financial Supervision conducted solvency risk management requirements and assessment (SARMRA) on 36 insurance companies, including two group companies, 15 property insurance companies, 16 personal insurers, and three reinsurers. The results showed the insurers had also strengthened the main responsibilities of risk management, made progress in risk management, established a relatively complete risk management structure, and formulated a relatively comprehensive risk management system.

Thirteen companies scored above 80 points; accounting for 36.1%; 21 companies scored between 70 and 80 points, accounting for 58.3%; and two companies scored below 70 points, accounting for 5.6%. The average evaluation scores of P&C insurers, life insurers, and reinsurers are 80.86, 75.45, 78.1, and 78.81 respectively.

The State Administration of Financial Supervision said its next steps are to “urge insurance institutions to strengthen the construction of risk management mechanisms, continue to improve risk management capabilities and firmly guard against systemic risks”.

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