China expands insurer assessment cycles to promote stability

The previous system only focused on the current year and a three-year cycle.

China has updated the performance evaluation system for state-owned insurance companies to promote long-term sustainability, the Ministry of Finance said last month

The new framework introduces a multi-tiered assessment model for return on equity (ROE), incorporating current-year, three-year, and five-year performance cycles. 

This replaces the previous system, which focused only on the current year and a three-year cycle.

The same changes apply to the evaluation of state capital maintenance and appreciation rates, which were previously assessed on an annual basis.

According to the ministry, the changes aim to strengthen the role of insurance capital in market stability and economic support.