China tightens supervision in the insurance sector

Foreign institutions that meet eligibility criteria will be supported.

China's State Council announced plans last Wednesday to issue guidelines aimed at strengthening supervision and preventing risks in the insurance sector, reported Reuters. 

The move includes tighter approval processes for new insurance agencies and efforts to improve the sector's overall quality.

The government will also support qualified enterprises in participating in reforms to address risks within insurance organisations. 

Additionally, foreign insurance institutions that meet eligibility criteria will be supported in establishing legal entities and branches in China.