China amends guidelines for administration of insurance coverage bailout funds By Reuters

BEIJING (Reuters) – China has amended guidelines for the administration of state-run bailout funds rescuing troubled insurers, its monetary regulators mentioned on Thursday.

The foundations intention to advertise wholesome growth of the insurance coverage trade, stop and resolve monetary dangers and preserve monetary stability, the China Banking and Insurance coverage Regulatory Fee mentioned in an announcement on its web site.

China Insurance coverage Safety Fund Co Ltd, which performed a key function in bailing out fallen Anbang Insurance coverage Group Co Ltd, is allowed to contain within the formulation of danger disposal plans, based on the brand new guidelines.

The foundations, collectively launched by the nation’ central financial institution, banking and insurance coverage regulator and finance ministry, will come into impact from Dec. 12.

The corporate operates bailout funds that present cash to rescue policyholders and liquidate troubled insurers. The funds shall be utilized in different eventualities authorised by the State Council, China’s cupboard, the principles mentioned, with out providing additional particulars.

The world’s second-biggest economic system slowed this 12 months, hit by strict COVID-19 restrictions, a deepening property disaster and weakening demand. In response to the slowdown, regulatory officers have vowed to rein in monetary dangers.

Shareholders and administration must also cooperate with authorities within the means of liquidating an insurance coverage firm with the help of the funds, the principles mentioned.

The brand new guidelines additionally adapt the cap of cash that insurance coverage firms ought to hand on to complement the funds.