A number of leading Chinese insurers have announced the suspension of online insurance operations following the release of tighter requirements for the sector.
Insurers including Fubon Property and Xintai Life Insurance have recently announced that they will suspend online insurance operations starting from 1 January 2022.
On 22 October the China Banking and Insurance Regulatory Commission (CBIRC) issued the “Notice Concerning Matters in Relation to Further Standardising Insurance Organisation Online Life Insurance Operations” (关于进一步规范保险机构互联网人身保险业务有关事项的通知), which ratchet up the requirements for online insurance operations.
The Notice requires that insurance companies that engage in online life insurance operations satisfy requirements including:
- A comprehensive solvency margin ratio of at least 120% for four consecutive quarters.
- A core solvency ratio of no less than 75%.
- A comprehensive risk rating of at least B for four successive quarters.
- A liability reserve coverage ratio of more than 100% for four consecutive quarters.
- A corporate governance rating of C (compliant) or more.