Improve risk management, CIRC tells insurers
July 30, 2010
CHINESE insurers have been told by the China Insurance Regulatory Commission (CIRC) that they should improve their actuarial systems in order to minimize operational risk. The CIRC ordered any insurer that had more than yuan1bn ($147.5m) in premiums to create an independent actuarial department. It added that if there was not an independent actuarial department, the activities that it would have undertaken should not be the responsibility of the underwriting, compensation or finance departments. The CIRC has also ruled that an insurer’s “responsible actuary” would not be allowed to hold a similar position with another insurance company. ...