China enhances online property insurance regulations

It will also restrict companies expanding to other services online.

China's National Financial Regulatory Administration (NFRA) issued new guidelines on Friday to strengthen the regulation of online property insurance companies.

Under the guidelines, traditional property insurance companies offering online services must maintain a comprehensive solvency adequacy ratio of at least 120% for the last four consecutive quarters. 

Additionally, they must achieve a core solvency adequacy ratio of at least 75% and a risk rating of B or above over the same period.

The guidelines also restrict property insurance companies that offer agricultural, marine, or special-risk insurance from expanding their services online.

The NFRA mandates that online property insurance providers clearly display procedures for contract revisions, cancellations, claim processing, and complaint handling. This follows a broader regulatory effort by the Chinese government, which introduced regulations in 2021 to reduce financial risks, protect consumers, and bolster the insurance sector's role in the economy.