CICC: Policies will promote the steady development of the insurance industry and lay a solid foundation for achieving high-quality development

The Zhitong Finance App learned that CICC released a research report saying that the China Financial Supervision and Administration issued the “Measures for the Management of Insurance Companies' Assets and Liabilities (Draft for Comments)”, which is scheduled to be implemented on July 1, 2026, marking a new stage in asset liability management supervision in the industry. The bank believes that the “Measures” establish a complete closed loop of supervision covering governance structures, quantitative indicators, management processes and coordination mechanisms, promote the shift of industry business logic from scale orientation to long-term steady management, and lay a solid foundation for the industry to consolidate risk management and achieve high-quality development.

The report points out that the “Measures” aim to implement the new “Ten National Rules” for the insurance industry to strengthen the joint supervision of assets and liabilities, resolve the industry's current problems such as disconnected asset and liability management, unclear policies and procedures, and prepare the system for the insurance industry to fully switch to the new accounting standards in 2026.

The bank said that the “Measures” set a regulatory range for personal insurance companies with an effective long-term gap and require that the comprehensive investment return coverage ratio and net investment return coverage rate should not be less than 100%. For property insurance companies, the focus is on deposit capital coverage, revenue coverage, and liquidity coverage under stressful situations.

Furthermore, in terms of the governance structure, the “Measures” refine the management responsibilities of insurance companies' boards of directors, senior management, and functional departments, and clearly require the establishment of independent asset liability management departments. In terms of process, establish a closed loop of management from asset liability analysis, business planning and product development, asset allocation and major investments, to stress testing and backtracking analysis.