What’s new: China’s top insurance regulator has named and shamed four insurers for reporting false solvency data in 2022.
The insurers include big names like AIA Life Insurance Co. Ltd., and PICC Life Insurance Co. Ltd., according to an announcement by the China Banking and Insurance Regulatory Commission (CBIRC) on Thursday.
The other two are Zheshang Property and Casualty Insurance Co. Ltd., and Ancheng Property and Casualty Insurance Co. Ltd.
“Untrue solvency data directly affect the quality and effectiveness of supervision,” the CBIRC said. Solvency data reflect an insurer’s ability to meet its obligations to policyholders.
AIA Life, wholly owned by Hong Kong-listed AIA Group Ltd., said in a statement to media that the problems raised by the CBIRC occurred in the first two quarters of 2022, and that the firm had completed rectification in the third quarter.
The background: The CBIRC tightened regulations regarding insurance companies’ solvency in January 2022.
Many insurance companies had to boost capital as the new regulations raised the bar for what constitutes core capital — the capital that an insurer has to absorb losses, even in the event of liquidation — which affects their solvency levels.
Last year, the insurance regulator carried out special probes into insurers’ solvency. The Thursday announcement was the first time that it announced solvency data problems since the probes started.
In the announcement, the CBIRC said it will take action against the four insurers’ misdeeds and continue to strengthen onsite probing of the authenticity of insurers’ solvency data.
Related: China to Allow Insurers to Issue Perpetual Bonds to Replenish Capital
Contact reporter Zhang Yukun (yukunzhang@caixin.com)
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