Stiffer control on insurance products
Chinese authorities have announced the imminent promulgation of a new regulation governing actuarial practices along with the establishment of more stringent controls on the insurance products marketed. The general management of insurance companies, whose products are not in conformity with the regulation, will be held accountable for any breach to the regulations in force.
Life insurance is the main class of business that is targeted by this reform. The new law will result, among others, in the overhaul of this business with regard to the management of universal insurance funds, the buy backs (acquisition) of insurance policies and annuities.
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