The responsible person of the relevant department of the China Banking and Insurance Regulatory Commission answered reporters' questions on the "Interim Measures for Off-site Supervision of Insurance Companies"

In order to establish and improve the off-site supervision system of insurance companies, clarify the division of labor of off-site supervision responsibilities, standardize the work process of off-site supervision, and improve the efficiency of off-site supervision, the CBRC issued the Interim Measures for Off-site Supervision of Insurance Companies (hereinafter referred to as the Interim Measures). A few days ago, the responsible person of the relevant department of the Banking and Insurance Regulatory Commission answered reporters' questions on issues related to the "Interim Measures."

I. What is the background of the promulgation of the Interim Measures?

A: After the establishment of the CBIRC, institutional regulatory departments urgently need to comprehensively track and assess the operation and risk status of insurance companies through off-site supervision, so as to provide basic support for market access, regulatory measures and regulatory policies. However, under the framework of the original insurance regulatory system, there is a lack of an off-site supervision system that adapts to institutional supervision and comprehensively covers the operation links of insurance companies. The CBIRA also generally reflects the lack of unified off-site supervision standards, and hopes to introduce relevant regulations to guide its off-site supervision of insurance company branches. In particular, after the supervision authority of some insurance company legal entities is delegated to the CBIRC, a unified off-site supervision system for insurance companies is also needed to guide the CBIRC to carry out relevant off-site supervision work.

II. What are the main ideas for formulating the Interim Measures?

A: Summarizing the past experience of off-site supervision of insurance companies, combined with the current division of regulatory responsibilities, the following ideas were followed when formulating the Interim Measures: First, it emphasizes the guidance of institutional supervision. The main purpose of formulating the Interim Measures is to serve institutional supervision, so it emphasizes that institutional regulatory departments are the leading departments for off-site supervision, and clarify the relevant off-site supervision work requirements around the responsibilities of institutional regulatory departments. The second is to highlight the specification of work processes and mechanisms. The off-site regulatory system can be divided into two aspects: the first is the work process and mechanism, and the second is the indicators and methods of regulatory assessment. Considering that there are large differences in the business scope and business model of property insurance companies, reinsurers and life insurance companies, as well as risks, it is necessary to formulate targeted monitoring indicators and evaluation guidelines separately, and there are many relevant contents. Therefore, the Interim Measures mainly regulate and clarify the work process and mechanism of off-site supervision, and the guidelines for guiding off-site supervision monitoring and evaluation work are formulated and issued separately.

3. What is the relationship between off-site supervision and comprehensive rating of solvency risk?

A: Off-site supervision serves institutional supervision, emphasizing the combination of quantitative and qualitative analysis, which is a comprehensive supervision covering the whole process and whole process of insurance company operation. The comprehensive rating of solvency risk is an integral part of the second generation of solvency, which serves the supervision of solvency and basically adopts quantitative evaluation. Solvency regulation is essentially capital regulation, and the regulatory focus is on capital adequacy. In general, the two have their own emphases and complement each other.

4. How can the off-site supervision led by institutional regulatory departments form a regulatory synergy with other regulatory means such as on-site inspections?

A: Article 8 of the Interim Measures stipulates that all regulatory departments should strengthen linkage and promote the sharing of regulatory information. Article 9 of the Interim Measures emphasizes that off-site supervision should form an effective connection with regulatory measures such as administrative approval and on-site inspection, and achieve cooperation and complementarity with key regulatory areas such as corporate governance, solvency, use of funds and consumer rights and interests protection. Article 28 of the Interim Measures clearly proposes project establishment based on the results of off-site supervision and assessment, and provides relevant data on off-site supervision to the on-site inspection department after the project is established, so as to track the progress and results of the inspection in a timely manner. Article 30 of the Interim Measures stipulates that in the process of carrying out off-site supervision, if it is analyzed that there are matters that need attention in regulatory regulations, regulatory policies, etc., it shall be promptly notified within the regulatory authority.

V. After the release of the Measures, what are the next steps?

A: In the next step, the CBRC will strengthen supervision and guidance, do a good job in the implementation of the Interim Measures, effectively improve the efficiency of off-site supervision of insurance companies, and comprehensively identify, monitor and evaluate the risk status of insurance companies. At the same time, I will be working intensively on the development of guidelines for risk monitoring and off-site regulatory assessment for property and casualty insurance companies, life insurance companies and reinsurance companies.

This article originated from the Banking and Insurance Regulatory Commission