Anbang’s fall should serve as a serious warning for other Chinese insurers looking to take advantage of insurance sales to help fund asset acquisitions.
Chinese insurer's downfall serves as a reminder not to flout regulators' wishes, but it also reveals a lot about Beijing's attitude towards corporates it deems too important to fall.
The draft guidelines form part of the new C-Ross solvency system, to which insurers in China must adapt over the next three years. They include reviewing asset-liability management.
The country's life insurers are investing more into alternatives and equity to raise returns. Doing so comes with sizeable risks that smaller firms may struggle with, say experts.
China's insurance regulator has issued additional guidelines around private equity investment by insurers, as they build exposure to the asset class, both as GPs and LPs.
Beijing's regulatory crackdown on aggressive selling and investment practices is expected to lead to industry consolidation.