1. Company Classification The China Insurance Regulatory Commission divides insurance companies into four categories based on their risk levels: Category A companies refer to companies with solvency standards and no problems found in corporate governance, capital utilization, market behavior, etc.
Category B companies refer to companies that meet the solvency standards but have certain risks in corporate governance, capital utilization, market behavior, etc.
Category C companies refer to companies whose solvency is not up to standard, or where there are greater risks in corporate governance, capital utilization, market behavior, etc.
Category D companies refer to companies whose solvency seriously fails to meet standards, or where there are serious risks in at least one aspect such as corporate governance, capital utilization, and market behavior.
2. Basis for classification The China Insurance Regulatory Commission classifies insurance companies based on the following information: (1) Monitoring indicators 1. Monitoring indicators for property and casualty insurance companies and life insurance companies include five major categories: (1) Solvency adequacy ratio; (2) Corporate governance, internal control and
Compliance risk indicators; (3) Fund utilization risk indicators; (4) Business operation risk indicators; (5) Financial risk indicators.
Each type of monitoring indicator consists of some specific indicators (see attachment for details).
2. The monitoring indicator of reinsurance companies is only the solvency adequacy ratio.
(2) Regulatory information obtained by the China Insurance Regulatory Commission during its daily supervision.
3. Supervisory measures: In its daily supervision, the China Insurance Regulatory Commission adopts different supervisory policies for the four types of companies in terms of products, institutions, capital utilization, etc., and adopts different supervisory measures based on the risks existing in the companies: (1) No special supervision measures will be taken for Class A companies.
regulatory measures.
(2) For Class B companies, one or more of the following regulatory measures can be taken: 1. Supervisory interviews; 2. Risk warnings; 3. Requiring the company to rectify existing problems within a time limit; 4. Conduct on-site inspections to address existing problems.
;5. Require submission and implementation of plans to prevent solvency failure.
(3) For Class C companies, in addition to the supervisory measures for Class B companies, one or more of the following supervisory measures can also be taken based on the reasons why the company's solvency does not meet the standards: 1. Comprehensive inspection; 2. Require submission of improvements
solvency plan; 3. Order to increase capital and limit dividends to shareholders; 4. Limit the salary levels and on-the-job consumption levels of directors and senior managers; 5. Restrict commercial advertising; 6. Restrict the establishment of additional branches; 7. Restrictions
Scope of business, ordering to stop developing new business, ordering to transfer insurance business, or ordering to handle ceding business; 8. Ordering to auction assets or restricting the purchase of fixed assets; 9. Restricting the channels or scope of fund utilization; 10. Adjusting the person in charge and relevant management personnel;
11. Report the company’s operating status to the board of directors, board of supervisors or major shareholders.
(4) For Class D companies, in addition to the supervisory measures for Class B and C companies, rectification, takeover or other supervisory measures deemed necessary by the China Insurance Regulatory Commission can also be taken.
4. Frequency of classification evaluation (1) At the beginning of each year, the China Insurance Regulatory Commission conducts a comprehensive evaluation and classification of insurance companies based on the audited data of the previous year and decides on regulatory measures.
On this basis, it will be evaluated every quarter, and the annual evaluation results and supervisory measures will be adjusted accordingly.
(2) If the operating conditions or financial conditions of an insurance company suddenly change significantly, the China Insurance Regulatory Commission may adjust the company's category and corresponding regulatory measures at any time.
5. Disclosure of classification evaluation results The China Insurance Regulatory Commission regularly informs each insurance company of the company's classification and the regulatory measures taken against it, but does not disclose it to the public.
6. Information that companies need to submit According to the needs of classified supervision, insurance companies should regularly submit classified supervision information to the China Commission. For specific requirements, please refer to the "Notice on Matters Concerning the Implementation of Classified Supervision Information Submission (Property Insurance Companies)" (
China Insurance Regulatory Commission [2008] No. 1567), "Notice on Matters Concerning the Implementation of the Submission of Classified Supervision Information (Life Insurance Companies)" (China Insurance Regulatory Commission Life Insurance [2008] No. 1566) and "Notice on the Submission of Classified Supervision Information of Insurance Companies"
》(China Insurance Regulatory Commission [2008] No. 113) and other documents.
7. Responsibilities of the China Insurance Regulatory Commission (1) According to the work arrangements of the China Insurance Regulatory Commission, collect and submit basic information on classified supervision, including: 1. Administrative penalties imposed on branches of insurance companies within the jurisdiction and regulatory measures implemented by the China Insurance Regulatory Bureau; 2.
Complaints and reporting cases within the jurisdiction; 3. Major events occurring in insurance company branches within the jurisdiction; 4. Internal control evaluation and off-site supervision information of insurance company branches within the jurisdiction.
(2) Implement the classified supervision measures adopted by the China Insurance Regulatory Commission on insurance companies.