News eDaily24 May 2017

China:Insurance industry's overall solvency position deemed sound

24 May 2017

China's insurance industry has kept its risks under control, with a sound solvency ratio, said the country's insurance regulator.

The industry's average comprehensive solvency adequacy ratio stood at 238% at the end of the first quarter, well above the 100% requirement, said CIRC in an online statement yesterday. This compared with 247% at the end of 2016.

Average core solvency adequacy ratio stood at 221%, above the required minimum 50%, indicating sufficient core capital in the companies to meet their obligations.

The risks in the industry is "controllable in general", but authorities should not underestimate risks arising from particular areas, the statement says.

The insurance regulator will place further emphasis on the importance of risk control, and strengthen the sector's role of supporting the real economy, adds the statement.

According to local media reports, solvency reports issued by insurers for the first quarter of this year show that among life and non-life insurers, two life insurers failed to meet the solvency mark.


 

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