China Banking and Insurance Regulatory Commission issued the Detailed Rules for the Implementation of the Measures for the Management of Non-life Insurance Business Reserves of Insurance Companies (No

Cctv newsAccording to the website of China Banking and Insurance Regulatory Commission, in order to further improve the supervision system of non-life insurance reserves, improve the internal control mechanism of reserve management of insurance companies, and standardize and effectively carry out reserve supervision, according to the Insurance Law of People’s Republic of China (PRC), Measures for the Management of Non-life Insurance Reserves of Insurance Companies (Order No.11 of the Insurance Regulatory Commission of the Bank of China, 2021) and other laws and regulations, China Banking and Insurance Regulatory Commission recently issued the Implementation Rules for the Management Measures for Non-life Insurance Reserves of Insurance Companies (No.1-7) (hereinafter referred to as ").

The main contents of the Implementation Rules include: first, to clarify the principles and methods of reserve evaluation, and to standardize the reasonable methods and assumptions used in reserve evaluation of insurance companies; The second is to stipulate the internal control process of reserve evaluation. When the reserve evaluation of an insurance company changes and has a significant impact, it should perform the process of submitting a resolution to the company’s board of directors; The third is to standardize the handling of reserve risk margin and discount, stipulate that the method of calculating risk margin should not be changed at will once it is determined, and clarify the duration standard of discount when evaluating reserve; Fourth, strengthen the management of the reserves of insurance companies’ branches, requiring insurance companies to objectively and fairly reflect the operating conditions of branches and not to artificially adjust them; The fifth is to standardize the retrospective analysis of reserves, and clarify the specific rectification measures that insurance companies should take when the retrospective results of reserves of insurance companies are greatly deviated; The sixth is to clarify the contents of the reserve evaluation report, standardize the specific information to be disclosed and the expression of actuarial opinions, and require insurance companies to fill in the reserve supervision report; Seventh, improve the working paper system for reserve evaluation, standardize the management of the preparation, review and use of working papers, and require insurance companies to keep working papers for future reference as required.

The promulgation and implementation of "Detailed Rules for Implementation" has effectively improved the scientific, rational and systematic supervision system of non-life insurance business reserves, and provided institutional guarantee for further strengthening the management of non-life insurance business reserves. In the next step, China Banking and Insurance Regulatory Commission will guide and urge all insurance companies to conscientiously implement the Detailed Rules for Implementation, continuously improve the management level of non-life insurance business reserves, and promote the high-quality development of the insurance industry.