China’s State Council has unveiled a set of guidelines to enhance the regulation and high-quality development of the insurance sector, as well as risk prevention in the industry.

The guidelines call for efforts to form an initial high-quality development framework for the insurance industry that has been steadily expanding coverage, increasingly comprehensive protection, continuously improving services, stable and balanced asset allocation, sufficient solvency, sound and effective governance, and internal control by 2029. By 2035, the insurance industry should have a complete market system, diversified products and services, scientific and effective supervision, and strong international competitiveness, according to the guidelines.

It is necessary to strengthen the regulation of insurance market access, tighten the continuous supervision of insurance institutions, crack down on illegal activities in the insurance sector, and effectively prevent and resolve risks in the industry in an orderly manner, the guidelines noted. The insurance market system should be optimized constantly, the guidelines say, calling for deepened reforms in key areas of the insurance sector and the advancement of the industry’s high-level opening-up.

(Source: The State Council of The People’s Republic of China)