China’s National Financial Regulatory Administration issued guidelines for insurance groups to manage “concentration risks”, asking insurers to have enough capital and liquidity shock absorbers.

The guidelines asked the insurers to formulate a concentration risk management strategy and mitigation mechanisms and hold the Board of Directors of a Company of Insurance Groups for Concentration Risk Management.

Companies must establish a mechanism for disseminating risk information and disseminate annual concentration risk management information on their websites before June 15 of each year, the regulator said.

The dissemination must include the organizational system of concentration risk management, management strategies and its implementation, risk state and important risk of concentration, he said.

(Mei Mei Chu and Tang Ziyi report; Mark Potter edition)

Topics Chinese carrier