The newly merged banking and insurance regulator CBIRC released new rules in May that substantially increase the disclosure obligations of insurers. Insurance companies must now provide detailed information about their ownership structures, main business activities and risk management practices. The new rules enter into force on July 1.
Complex webs of ownership and corporate arrangements in China's financial sector have increased stability risks. The new rules require insurance companies, among other things, to reports all entities that hold more than 5 % of a company's shares, as well as declare who actually holds decision-making powers in the firm. For the first time, insurance companies must reveal information about their liabilities, assessments of balance sheet items and future cash flows.