Accelerating the development of the insurance industry will help improve China's financial market structure, optimise the allocation of financial resources, and enhance the stability of the financial system, a top Chinese regulatory official has said.
The State Council, which is China's cabinet, has spelt out several measures to promote the high-quality development of venture capital, including encouraging long-term funds, such as insurance funds, to invest in the venture capital sector to boost innovation.
Since the beginning of this year, listed companies have shown an increasing enthusiasm for Directors & Officers (D&O) liability insurance. This is attributed largely to the new Company Law, scheduled to take effect on 1 July 2024. The revised Company Law establishes for the first time D&O liability insurance through legislation.
Five major A-share insurance companies in China have posted a combined premium income of CNY1.46tn ($200.75bn) for the first five months of this year, a year-on-year increase of 2.19%, according to statements filed with the stock exchange.
Tian'An P&C Insurance, whose management has been taken over by financial regulators since 2020, will be declared bankrupt and liquidated while its assets and liabilities will be transferred to the start-up Shenergy P&C Insurance, according to an official of the Property Insurance Department of the National Financial Regulatory Administration (NFRA).
The life insurance industry in China has entered a "Three low's" stage of low interest rates, low returns, and low solvency, with small and medium-sized companies in particular under heavy pressure.
YSX Tech, which provides business services primarily to insurers and brokerages in China, has filed for an initial public listing on Nasdaq in the US to raise up to $6m, says Renaissance Capital, a US-based global IPO investment advisor.
Chinese insurance giant China Life has made direct investments exceeding CNY1tn ($138bn) in the integrated development of Beijing, Tianjin and Hebei.
The Shanghai International Reinsurance Trading Centre has signed several pacts to build a unified, open, efficient, and modern reinsurance trading market.
A senior member of China's highest political advisory body has called for long-term care insurance to be made compulsory.