The China Insurance Regulatory Commission (CIRC) has said that the country’s insurance sector needs to place risk control in a more important position. It also vowed to assist in pushing forward reform in the sector and strengthening supervision to fend off financial risk.
“The whole sector will put risk control in a more important position,” said Chen Wenhui, vice chairman of CIRC, according to news outlet XianhuaNet. “Actions will be taken to crack down on serious violations, dissolve hidden risk points and improve the long-term mechanism to hold the bottom line of no systemic risks.”
The reiteration on CIRC’s stance has come after big insurers were found to be using leveraged money to buy in shares listed companies seeking short-term profits or controlling stakes, which in term triggered market concerns late last year.
Chen added that CIRC will strengthen the sector’s role in supporting the full economy.