CPIC Life puts stress on Belt and Road, weighs alt exposure

Chinese insurers are seen shoring up their capital adequacy levels and turning more prudent with their investments as a result of looming new changes to their solvency regime.

Premier Li Keqiang is urging instos to ramp up their investments in infrastructure projects. But investors will likely find it increasingly more difficult to source good opportunities in this sector.

Insurance firms in the region would like to make more use of internal rating models and of ‘look through’ treatment of funds to reduce risk charges on private market investments.

The Chinese authorities are encouraging insurers to invest more in private equity funds, but the chances of success are debatable.