Chinese Regulators Echo U.S. on Global Insurance Standards

Chinese insurance regulators echoed the sentiments of U.S. regulators, urging the international regulatory community to take a gradual approach to the development of international insurance capital standards that should allow for jurisdictional control over implementation.

The International Association of Insurance Supervisors continues to work on a proposed global insurance capital standard, which U.S. regulators have said is unfair to countries with insurance governance styles dissimilar to the European Union's Solvency II regulatory regime. The U.S. has long relied on a state-based approach to insurance regulation, whereas the Solvency II system is based on a centralized-government methodology.

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Officials from the National Association of Insurance Commissioners (NAIC) and the New York State Department of Financial Services met July 26 with representatives from the China Insurance Regulatory Commission (CIRC) at NAIC’s New York office.