BEIJING, May 7 (Reuters) - The China Insurance Regulatory Commission said on Sunday that regulatory holes should be plugged and supervision stepped up to the overcome shortcomings in the system. A sound regulatory system for companies should be established and supervision strengthened over the shareholder ownership structure and the authenticity of their funds, the commission said. The statement comes amid a widespread regulatory crackdown on what is seen as the excessive use of universal life products by some insurers, and as China’s central leadership moves to curb risk in the financial system. The regulator vowed last month to improve its conduct and bring the market back to order after its chairman was placed under investigation and removed from his post for “serious disciplinary violations”, a euphemism for corruption. Reporting by Ben Blanchard and Stella Qiu; Editing by Nick Macfie
The China Insurance Regulatory Commission is stepping up supervision of the insurance industry, including strengthening regulatory scrutiny of companies' share-ownership structure and the authenticity of their funds. The announcement followed a crackdown on what the commission sees as the overuse of universal life products by some insurers.