CCTV News: According to the WeChat official account of the State Administration for Financial Supervision, in order to further strengthen the supervision of insurance groups and improve the level of risk management of insurance groups' concentration, the State Administration for Financial Supervision recently issued the "Guidelines for the Supervision of Insurance Group Concentration Risks" (hereinafter referred to as the "Guidelines"), and the heads of relevant departments and bureaus answered reporters' questions on the "Guidelines".

1. What is the background of the release of the "Guidelines"?

Insurance groups are involved in a wide range of business areas and many member companies, and are prone to relatively concentrated large-scale risks to the same entity, investment products, business areas, etc. At present, relevant regulatory requirements are scattered in various documents such as insurance group supervision, solvency, and fund use. No unified and standardized concentration risk supervision rules have been issued. The State Administration for Financial Regulation adheres to problem-oriented and goal-oriented approaches and has studied and formulated the "Guidelines" to provide guidance for insurance groups to strengthen concentration risk management.

2. What are the guiding principles of the "Guidelines"?

First, adhere to problem-oriented and goal-oriented approach. In response to the current situation and problems of insurance group concentration risk management, improve the basis of regulatory system and enrich regulatory policy tools, guide insurance groups to establish a prudent business philosophy, strengthen concentration risk management, and maintain the bottom line of no systemic risks.

The second is to focus on gradual progress. Concentration risk supervision is mainly based on principled requirements. In the future, as the industry and regulatory practices gradually mature, regulatory measures and means will be further improved.

The third is to learn from international regulatory rules. In terms of direction and concept, we learn from the Joint Forum's "Principles of Financial Group Regulatory" and other international regulatory rules, and make provisions in terms of concentration risk identification, measurement and disclosure.

3. What is the main content of the "Guidelines"?

The "Guidelines" aim to promote insurance groups to effectively manage concentration risks and effectively improve risk management levels. The main contents include: First, clarify the principles of concentration risk management. Concentration risk management must follow the principles of prudence, matching, unity, and dynamics. It is required that concentration risk be managed in accordance with the principle of substance over form and penetration on the basis of consolidation management. The second is to standardize the concentration risk management process. The "Guidelines" require insurance groups to establish a concentration risk management process including concentration risk identification, measurement, monitoring, reporting, etc. Third, insurance groups are required to establish a multi-dimensional indicator and limit management system. The "Guidelines" require insurance groups to promote the construction of multi-dimensional indicators and limit systems, and establish a back-retrospective update mechanism for concentration risk indicators and limits, a concentration risk warning mechanism, and an exceeding limit management mechanism. Fourth, improve information disclosure and reporting. The "Guidelines" require insurance groups to disclose annual concentration risk management information on their official websites, regularly count concentration risk indicators, and report concentration risk status.