The year 2016 has been a milestone year for the Chinese mainland insurance market with the total premium for Chinese mainland increasing 27.5 percent year-on-year, a recent report released by EY said.
The implementation of the China "Risk-Oriented Solvency System" by the China Insurance Regulatory Commission (CIRC) marked a new era for the Chinese insurance market in terms of reaching global standards with its solvency and risk management systems, said the report.
In early 2017, more rigorous policies were released by the CIRC to further enhance its risk management and controls over corporate governance, asset and liability match, as well as investment and product development for the Chinese insurance industry, the report said.
The report noted that the journey of insurance industry developments in 2016-17 can be summarized as "preventing risks, embracing innovation and expanding overseas."
"Preventing risks" have been the theme of insurance regulation since 2016, while "embracing innovation" is the mega trend to be adopted to aid the development of the insurance industry. Besides, "expanding overseas" reflects the development level and future planning of the insurance industry in Chinese mainland, at both the business and regulation level.