China regulator sets rules
China's insurance regulator launched new rules to curb the risks associated with property insurance products, it said in a notice on its official website. The move is the latest in a slew of measures introduced by the China Insurance Regulatory Commission (CIRC), which has been taking steps against overbearing shareholders, funding term mismatches and risky acquisitions, among others. "There is a lack of historical data for many products, so the pricing process is unscientific," the regulator said in a question and answer with journalists. The aim is to ensure reasonableness, so that insurers do not earn overly high premiums for insured risks, it added. Last week, the regulator said it might slash the upper limit of a single shareholder's stake in an insurance company to one-third, from 51 percent now, to prevent any improper transfer of benefits.
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