On 23rd April 2017, the China Insurance Regulatory Commission (CIRC) issued a notice highlighting nine key areas of insurance sector risk-prevention concerns:

  1. Liquidity
  2. Funding Operations
  3. Strategy
  4. New Lines of Business
  5. Outsourcing
  6. Herd Mentality
  7. Lack of Transparency
  8. Capital Deficiency
  9. Reputation

The Notice goes on to set out a number of specific requirements for insurers in respect of each of 1-9 above. The Notice reminds Officers & Directors of insurance companies that they, personally, will be pursued and prosecuted if their respective obligations regarding risk prevention are not duly performed.