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Chinese insurers warned on life product risks

Mainland insurance firms hold high cash allocations to help them manage short-term savings products – but this may be storing up trouble, says rating agency Moody’s.
Chinese insurers warned on life product risks

Chinese insurance firms have been steadily raising their exposure to risk assets, from equities to alternative investments, sparking concerns among industry analysts and regulators alike. Following stellar premium growth, mainland insurers are increasingly relying on long-term, illiquid investments to achieve the returns they need to meet what are much shorter-term liabilities.

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