According to data released by the China Insurance Regulatory Commission (CIRC), the China insurance industry continued strong growth in the third quarter of 2016. The total insurance premium income and the amount of investable assets increased significantly compared to the same period last year. On the other hand, the insurance companies are facing challenges from asset sourcing, new CIRC regulations and increasing market competitions.
As the last piece of the puzzle, Integrated Risk Rating (IRR) under C-ROSS, is now in place, the unique Solvency Aligned Risk Management Requirements and Assessment (SARMRA) has been implemented in the third quarter 2016, with the completion of the first regulatory SARMRA review being targeted for the fourth quarter of 2016. The SARMRA score, which ties to a control risk minimum capital add-on or reduction effective at 2016 year end, will encourage insurers to enhance their risk management capabilities.
The KPMG Actuarial Services team has analysed the Q3 solvency, operational performance and competitiveness data disclosed by all insurers and the CIRC, and summarised the key indicators, movements and trends.