China Insurance Regulatory Commission, Guidelines for Consolidated Oversight of Insurance Groups (Draft for Comments)

Issued: July 28 2014

Main contents: The Draft proposes that the following institutions, other than the member companies, invested in by an insurance group are to be made subject to consolidated oversight:

(1) where the size of assets of an institution invested in accounts for a relatively small percentage of the overall assets of an insurance group but the risks engendered thereby are sufficient to have a material impact on the financial position and risk level of the insurance group; or

(2) where the harm and losses caused by the compliance risk and reputation risk brought by an institution invested in are sufficient to have a material impact on the reputation of the insurance group.