CIRC PUBLISHES CONSULTATION PAPER ON INSURANCE SUPERVISION

The China Insurance Regulatory Commission (CIRC) has published draft rules for public consultation detailing its plans to strengthen the supervision of senior insurance executives. The new proposed rules, instituted after insurers were given greater leeway in their investment allocations, require companies to establish audit committees to review the performance of their directors and senior executives. Under the draft rules, audits are required to be carried out once every three years. Insurers would also be required to review executives’ performance when they leave the company. State-owned insurers would need to show the performance of state assets, submitting performance review plans to the CIRC by the end of January each year.