Risk control will remain a priority in China's insurance sector with planned measures like limiting the share ownership of single share owners, a top CIRC official has said.
Each share owner will no longer be allowed to hold more than one third of shares in an insurance firm, down from the previous 51%, to prevent a single party enjoying too much power in making investment decisions, Mr Chen Wenhui, CIRC Vice Chairman said, according to a report in the Shanghai Daily.
The regulator will also study the feasibility of creating a “black list” for professional managers in the sector. It will establish a multi-level prevention system to cope with deep-rooted malpractices such as providing misleading information in sales, making claims difficult and cheating for compensation.
“Preventing is the eternal theme of financial work,” Mr Chen said. He added that the insurance industry itself should pay more attention to risk management and develop more steadily.