On Jan. 17, CHI NFRA issued measures on insurance firm reg ratings.
CHI NFRA issued notice on Insurance company regulatory rating measures in order to implement requirements specified in the opinion below; answered reporters' questions.
Follows CHI GVT Sep. 2024 issued opinions re growth of insurance sector, #225723.
Also follows CHI NFRA Mar. 2024 issued measures on risk rating system, see #204869.
Overview of the Measures
Notice applies to insurance companies established in China that have been in business for more than one year, including insurance group (holding) firms, property insurance firms, life insurance firms, reinsurance firms and branches of foreign reinsurance firms.
For newly-established insurance firms, trial ratings may be conducted accordingly.
The measures take consideration of risks in all aspects of company including corporate governance, solvency, liability quality, asset quality, as well as information technology.
In addition, risk management, operating conditions, and consumer rights protection.
Specifies the rating factors, rating methods as well as the rating procedures.
Categories into five ratings, from rating 1 with lowest level of risks to rating 5 with the highest level of risk; specifies the use of rating results, allocating regulatory resources.
Insurance firms that are in process of restructuring, being taken over, or exiting the market will be directly rated S, meaning they are not required to participate in rating.
If the provisions in Measures for the supervision and rating of life insurance companies (#204869) are inconsistent with these measures, these measures shall prevail.
