China insurance regulator tightening licence issuance: sources

Hong Kong

CHINA'S insurance regulator is making it much tougher for insurers to get new licences as it seeks to reduce risks resulting from the aggressive business and investment practices of some players, said three people with knowledge of the matter.

Concerns about the kinds of asset purchases and trading conducted by some insurers and its focus on new solvency rules that require existing insurers to have stronger risk controls and higher capital buffers are among the reasons for the cautious approach by the China Insurance Regulatory Commission (CIRC), these people said.