China Changes Rules on Insurance Bailout Funds


China has changed its rules for the management of state-run bailout funds rescuing troubled insurers, financial regulators said on Thursday.

The rules aim to promote healthy development of the insurance industry, prevent and resolve financial risks and maintain financial stability, the China Banking and Insurance Regulatory Commission said in a statement on its website.

China Insurance Security Fund, which played a key role in bailing out fallen Anbang Insurance Group, is now allowed to be involved in the formulation of risk disposal plans, according to the new rules.

The rules, jointly released by the country’ central bank, banking and insurance regulator and finance ministry, will come into effect from December 12.

The company operates bailout funds that provide money to rescue policyholders and liquidate troubled insurers. The funds will be used in other scenarios approved by the State Council, China’s cabinet, the rules said, without offering further details.

The world’s second-biggest economy slowed this year, hit by strict Covid restrictions, a deepening property crisis and weakening demand. In response to the slowdown, regulatory officials have vowed to rein in financial risks.

Shareholders and management should also cooperate with authorities in the process of liquidating an insurance company with the support of the funds, the rules said.

The new rules also adapt the cap of money that insurance companies should hand on to supplement the funds.


  • Reuters with additional editing by Jim Pollard




Tesla Boosts Insurance Incentive in China to Lift Purchases


China Unemployment Payouts Hit a Record $5.2bn in June


China pushes ‘inclusive finance’ and insurance to reduce poverty



Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.

Recent Posts

PwC Probed For ‘Enabling Evergrande Misconduct For Years’

PricewaterhouseCoopers, one of the Big Four auditors, had been Evergrande’s auditor since 2009, when the…

2 hours ago

Taiwan Shaken by 200 Quakes, TSMC Operations Unaffected

The island has now been hit by more than 1,000 aftershocks following the deadly April…

3 hours ago

Huawei Takes Another Bite Out of Apple’s Market Share in China

Huawei looks set to become the No-1 smartphone seller in China this year, backed by…

7 hours ago

US to Sanction Chinese Banks Helping Russian War — WSJ

Secretary of State Antony Blinken is set to fly to Beijing to outline this threat…

7 hours ago

‘Bad Bot’ Attacks Surge, Gaming Sector No1 Target – Entrepreneur

Bots, which are used in data scraping raids and spamming operations, are also a problem…

8 hours ago

Hang Seng Boosted By Wall St Tech, Weak Yen Lifts Nikkei

Investor attention shifted to US tech giants and their imminent earnings reports though Middle East…

9 hours ago