SHANGHAI, Dec 16 (Reuters) - China’s insurance regulator has issued warnings to 10 companies after they failed to properly carry out self-inspections on their risk levels, the Securities Daily newspaper reported on Friday.
Citing an internal report by the China Insurance Regulatory Commission, the newspaper said the companies - including three property insurance firms and seven life insurers - were among firms ordered to undertake self-inspections in July.
“A number of firms were just going through the motions during the self-inspections, submitting incomplete responses, did not make adequate disclosure of risk and there was a large gap between the self-inspections’ conclusions and that of the regulatory departments,” the report said.
“Corporate institutions should pay special attention to high leverage, the use of funds and other issues. There needs to be remedies as the self-examination was not up to scratch,” it said, without naming the companies.
The regulator has criticised the country’s insurers, urging them to reel back investing in stocks and long-term assets using short-term funds that could lead to a sudden tightening of liquidity in the event of market volatility.
It has also tightened its control over short- and mid-term life insurance products and earlier this month banned Foresea Life from selling “universal life” products. (Reporting by Brenda Goh; Editing by Stephen Coates)