With the rapid development of China’s insurance industry, insurance funds have become an important long-term capital force. In order to optimize insurance fund allocation and prevent investment risks, the China Banking and Insurance Regulatory Commission has issued policies to regulate post investment management of insurance asset companies. This article will elaborate on the key requirements and responsibilities of insurance asset companies in post investment management.
Insurance companies should clarify post investment responsibilities
The CBIRC requires insurance institutions to clearly define the management responsibilities after investing in financial products. Specific responsibilities include assigning dedicated post-investment management personnel, regularly tracking investment status, and taking effective risk control measures. Clarifying responsibilities is crucial for insurance companies to properly monitor investments and respond to risks.
Insurance asset companies should conduct active oversight
The notice stipulates that insurance asset management companies entrusted to invest in financial products should undertake active management duties including due diligence, decision-making and post-investment oversight. They are required to select investments prudently, instead of relying solely on external ratings. This empowers insurance companies to make informed decisions and ensure effective post-investment management.
Stringent look-through supervision is implemented
For certain financial products, insurance companies must possess investment management capabilities in line with the underlying assets. The true risks of the investment assets should be reflected by incorporating the underlying assets into relevant investment proportion management. This look-through approach enables insurers to understand the real risks behind layered investment products.
Investment in single asset management plans is standardized
When investing in single asset management plans and private placement products issued to a single investor, insurance companies are required to optimize manager selection procedures, formulate prudent investment guidelines and maintain asset security. This prevents insurance funds from being directly exposed to high concentration risks.
In summary, the post-investment management requirements on insurance asset companies aim to ensure effective oversight of insurance funds and control investment risks, supporting insurance capital to serve the real economy in a sustainable manner.