CHI NFRA proposed Measures for the risk classification of insurance assets, due to expanded investment scopes, complexity; held press conference to answer questions.
Proposed Measures
Address investments across diverse assets including fixed income, equities, real estate; implements detailed classification system to better manage risks.
Aim for comprehensive evaluation of insurance investments, real quality of assets.
Align standards for overdue principal/interest and impairment provisions with that of commercial banking, incorporates risk factors re stakeholders and quality of collateral.
Emphasize monitoring and managing non-performing or risky assets; integrates classification results into company performance assessments, regulatory monitoring.
Insurance asset management companies are expected to independently assess risks, manage investments; ensure comprehensive assessment, management of asset risks.
The handling of financial asset impairment by insurance companies should align with the accounting standards applicable to them, whether old or new.
Consultation Period
The consultation is open until Sep. 2, 2024.
Nov. 2024 Measures Finalized
On Nov. 29, 2024, CHI NFRA issued finalized measures, effective from Jul. 1, 2025.
