HONG KONG, Jan 29 (Bernama-BUSINESS WIRE) — AM Best views the announced changes tothe solvency management of China’s insurance sector as a positive step, particularly in the reinforcement of balance sheet strength and the development of enterprise risk management.
The China Banking and Insurance Regulatory Commission (CBIRC) announced that the changes will go into effect 1 March 2021. In its new Best’s Commentary, “China Revises Solvency Management Rules to Strengthen Industry Capitalisation,” AM Best notes that the revised rules will also form the foundation for the regulator’s upcoming release of technical adjustments to insurers’ solvency calculation as part of the wider China Risk-Oriented Solvency System Phase II implementation.