News eDaily30 Jul 2014

China:Regulator mulls moves to slow launch of new life products

30 Jul 2014

China's insurance regulator is considering measures that will slow down the capacity of insurance companies to launch life insurance plans in the rapidly growing industry as part of moves to reduce the risk of defaults in the sector.

China Insurance Regulatory Commission will set requirements linking insurers' capitalisation levels to the approval of new life insurance products, reported Reuters citing state-run Shanghai Securities News.

In a bid to manage risks, the regulator will also ban firms from distorting the scope of their coverage and from selling complex products that will be difficult for consumers to understand.

Rapid growth in China's insurance industry and investment into risky local infrastructure and housing projects have weakened the position of smaller insurers in particular.

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