CCTV News: Recently, the State Administration for Financial Regulation issued the "Insurance Company Supervision Rating Measures" (hereinafter referred to as the "Rating Measures"), which will come into effect on March 1, 2025. The "Rating Measures" is a unified supervision rating system for insurance companies studied and formulated by the State Administration for Financial Regulation in accordance with the relevant deployment and requirements of the State Council on Strengthening Supervision, Preventing Risks and Promoting High-Quality Development of the Insurance Industry (Guofa [2024] No. 21). The regulatory authorities will conduct supervision ratings and implement classified supervision for insurance companies in accordance with the "Rating Measures", which is of great significance to reasonably allocate regulatory resources, improve supervision effectiveness, and strengthen risk prevention and control in the insurance industry.

The Rating Measures adhere to the following drafting principles: First, adhere to risk-based. Regulatory ratings are the main basis for measuring the level of risk of insurance companies. The Rating Measures require comprehensive consideration of risks in the company's business management, such as corporate governance, solvency, liability quality, asset quality (including asset-liability matching), information technology, risk management, operating conditions, consumer rights protection, etc., and the rating results are determined based on the overall risk size to fully reflect their actual risk level. The second is to base ourselves on our country’s reality. The Rating Measures focus on comprehensively strengthening the "five major supervisions", fully considering the actual development of my country's insurance industry and the new situation facing supervision, comprehensively summarizing the operation experience of the current relevant systems, effectively improving the scientific nature of the regulatory rating system. The third is a unified rating framework. For insurance group (holding) companies, property insurance companies, life insurance companies and reinsurance companies, the Rating Measures has established a unified regulatory rating framework, and adopted consistent rating methods, rating procedures and rating classifications to effectively improve the unity and standardization of rating work. Fourth, strengthen the application of results. The regulatory authorities will scientifically formulate regulatory plans based on the insurance company's regulatory rating results, reasonably allocate regulatory resources, and support the best and limit the worst. They will use the rating results as an important basis for market access and on-site inspections in daily supervision.

In the next step, the State Administration for Financial Regulation will do a good job in implementing the "Rating Measures", formulate specific evaluation standards based on the operating characteristics and risk characteristics of different types of insurance companies, improve the regulatory rating information system, strengthen the rigid constraints of ratings and the application of results, and promote the high-quality development of the insurance industry.

News link:

Notice of the State Administration for Financial Supervision and Administration on Issuing the Supervision Rating Measures for Insurance Companies