The outbreak of the 2008 financial crisis has generated a long-lasting impact on the world economy and...
Insurance regulation in China
Insurance is a business closely linked with the public interest. The business of insurance, although primarily a matter of private contract, is nevertheless of such concern to the public as a whole that it is subject to governmental regulation to protect the public’s interests. The rationale being that insurance regulation promotes beneficial competition and prevents destructive or harmful competition in various areas.
Globally, insurance regulatory regimes are evolving from formulaic, risk-based methodologies to an integrated risk-based approach. The pending implementation of Solvency II in the European Union has prompted countries in core and high growth markets alike to become more aware of the importance of risk in assessing insurers' solvency and to develop regulatory regimes which take into account the full range of risks facing insurers.