CHINA REGULATOR ISSUES NEW RULES FOR INSURANCE CO.S INTERNAL OPS

The China Insurance Regulatory Commission (CIRC) on Tuesday issued basic guidelines for the internal control of insurance companies, which introduces comprehensive monitoring of insurance capital operations.

The CIRC is urging insurance companies to organize and implement internal control measures on insurance capital operations, including assets allocation, assets and liabilities matching, investment decision making, investment transaction management, and assets custody.

The insurance regulator also requires insurers to set up internal control systems to regulate their marketing campaigns and business operations.

A CIRC official said that internal control systems could reinforce insurers' corporate governance, and help the regulator CIRC improve its supervision. The official said that the CIRC is establishing a modern supervision system on basis of market activity, insurers' solvency, and corporate governance.

Under the new guidelines, the CIRC will work out specific implementation measures for insurers' operation.