The General Office of the National Financial Supervisory and Administration published the "Insurance Group Concentration Risk Regulatory Guidelines" last Saturday (the 8th), requiring insurance group companies to establish mechanisms for disclosing concentration risk information, emergency and mitigation management, etc. Insurance groups should Hold sufficient capital and liquidity buffers for concentration risk, and member companies should avoid excessive reliance on specific Assets, trading counterparts, customers, regions, or markets.

The guidelines state that when various types of concentration risk have already occurred or are expected to pose significant risks that may greatly impact the group's liquidity, solvency, reputation, etc., insurance group companies must develop and strictly implement emergency management and risk mitigation plans to effectively control and mitigate risks. Insurance group companies should also establish a concentration risk disclosure mechanism, disclosing their annual concentration risk management information on their official website before June 15 each year.

Concentration risk for insurance groups refers to the risks that may have a significant impact on the normal operations of the group after aggregating single risks or risk portfolios of member companies that are consolidated at the insurance group level. (vc/u)

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