China’s Insurers Have Major Risk Management Deficiencies, Warns Regulator

Chinese insurance firms have significant risk management deficiencies, as they overly focus on asset management for profits and growth, a senior official at China’s insurance watchdog said on Saturday.

Vice chairman Chen Wenhui of the China Insurance Regulatory Commission (CIRC) said at a forum in Beijing that the insurance industry was “incorrect” in prioritizing asset management over risk management.

“Risk management capabilities are insurance firms’ core competency, not asset management,” financial publisher Caixin quoted him as saying.

(Reporting by Yawen Chen and Ben Blanchard; editing by Clelia Oziel)