April 27th, 2016
China’s Insurance Regulatory System
Posted at 1:00 AM ET
Here we review recent GC Capital Ideas posts on developments in China’s insurance regulatory system.
Posts Tagged ‘C-ROSS’
January 21st, 2016
China Risk Oriented Solvency System (C-ROSS)
Posted at 1:00 AM ET
The China Insurance Regulatory Commission (CIRC) is instituting sweeping changes through its three-tiered China Risk Oriented Solvency System (C-ROSS) framework that will dramatically impact how (re)insurers conduct business. It will strengthen capital requirements, risk management and transparency disclosures - bringing China in line with, and in some cases overtaking, global standards. The C-ROSS framework is similar to Solvency II: three tiers focusing on quantitative, qualitative and disclosure requirements.
January 19th, 2016
Developments in Asia Pacific: Overview, Part I
Posted at 1:00 AM ET
Asia Pacific is a diverse mix of countries encompassing nearly one-third of the earth’s landmass and more than one half of its population. Given the broad spectrum of economic and regulatory sophistication across the region, the approach to insurance regulation has varied on a country-by-country basis as each regime adapts solvency principles to their own needs and political realities.
December 23rd, 2015
Update on China Counterparty Risk Charges for Offshore Reinsurers: Part II
Posted at 1:00 AM ET
Eva Zheng and Graham Jones
It is anticipated that the China Insurance Regulatory Commission (CIRC) will recognize cash deposits (including premiums withheld), letters of credit (LOC) and certain other forms of collateral. LOCs must be issued by domestic banks with a capital adequacy ratio of no less than 11 percent or by overseas financial institutions with credit ratings equal to or higher than AA-. Cedents will be required to report and re-value their counterparty risk on a quarterly basis and adjust collateral positions accordingly.
December 22nd, 2015
Update on China Counterparty Risk Charges for Offshore Reinsurers: Part I
Posted at 1:00 AM ET
Eva Zheng and Graham Jones
China’s developing insurance market is a potential bright spot for growth in an otherwise challenging landscape for global reinsurers. Driven by a maturing economy and expected increases in household penetration ratios, property/casualty insurance premium, totaling USD 121.6 billion in 2014 (1), is projected to increase to roughly USD 300 billion by 2030 (2).
