SHANGHAI Dec 16 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)