Fitch sees progress in China's insurance regulations

The industry has begun to embrace the IFRS 17 standards.

Fitch Ratings noted that while China’s regulatory environment is still evolving, standards are progressively improving. Chinese insurers listed on the stock exchange adopted the IFRS 17 accounting standard starting in 2023. 

Other insurers are required to transition to this standard by 2026. The domestic insurance market in China is sophisticated, offering a wide range of products across both life and non-life segments, catering to both corporate and individual clients.

The National Administration of Financial Regulation (NAFR) is the regulator of China’s financial industry, excluding the securities sector. 

Established in May 2023, NAFR's objectives are to standardize financial behaviour, enhance regulatory efficiency, and reduce compliance costs and risks associated with varying standards. 

It operates directly under the State Council and succeeded the China Banking and Insurance Regulatory Commission.