The draft of the Asset-Liability Management Measures for Insurance Companies was released for public consultation.

On December 19th, the China Banking and Insurance Regulatory Commission (CBIRC) issued the "Asset-Liability Management Measures for Insurance Companies (Draft for Comments)" and officially solicited public opinions. The "Measures" consist of 5 chapters and 51 articles, including general principles, asset-liability management, regulatory indicators and monitoring indicators, supervision and management, as well as supplementary provisions. Firstly, it clarifies the objectives and principles of asset-liability management. Insurance companies are responsible for asset-liability management and should adhere to the principles of comprehensive coverage, reasonable matching, prudence, and coordination to effectively prevent asset-liability mismatch risks. Secondly, it standardizes the governance structure for asset-liability management. It specifies that insurance companies should establish an organizational structure with the board of directors taking ultimate responsibility, senior management providing direct leadership, the asset-liability management department coordinating, functional departments collaborating, and internal audit departments overseeing. Thirdly, it defines asset-liability management policies and procedures. Fourthly, it establishes regulatory indicators and monitoring indicators. Lastly, it enhances supervision and management. The document aims to guide insurance companies to establish prudent management concepts, strengthen the effective linkage between assets and liabilities, prevent asset-liability mismatch risks, and maintain the healthy and sustainable development of the insurance industry. Furthermore, it promotes insurance companies to improve their performance evaluation system, extend the evaluation cycle, and serve the high-quality development of the real economy. In the next steps, the CBIRC will revise and improve the "Measures" based on the feedback received through public consultation and industry testing results, and then proceed with the official implementation. This text is excerpted from the CBIRC and was edited by Chen Wenfang.