China has officially implemented a new capital and risk regime for insurance companies, hoping to ensure rational growth of the insurers.
The China Risk Oriented Solvency System sets new requirements and calculation models for capital adequacy and solvency capability of insurers. Insurance companies are also required to submit their solvency reports quarterly.
The new rule will take effect this quarter. China's insurance industry, ranks the third in the world, had a 2.4 trillion yuan worth of premium income in 2015, up 20 percent from the previous year.
