The relevant departments of the China Banking and Insurance Regulatory Commission respond to press inquiries about the "Measures for the Asset-Liability Management of Insurance Companies."

What changes are there in the "Methods" compared to the "Interim Measures for the Supervision and Management of Insurance Asset and Liability"? Firstly, there is system integration. The "Methods" integrate the relevant requirements that were previously scattered in the interim measures and five regulatory rules, making the regulatory framework more complete. Secondly, there is a sound organizational structure. Responsibilities for asset and liability management at all levels of insurance companies are strengthened, emphasizing the independence of asset and liability management departments, ensuring their ability to fulfill their duties, and clearly implementing long-term assessment evaluations. Thirdly, there are clear regulatory indicators. Regulatory indicators such as effective duration gap, comprehensive investment income coverage ratio, net investment income coverage ratio, accumulated fund coverage ratio, and liquidity coverage ratio under pressure scenarios are established, with specified threshold values. Regulatory measures will be taken against companies that do not meet the standards. Fourthly, there is optimization of indicator calculation methods. The pressure scenarios will be adjusted according to macroeconomic changes, and the risk hedging effects of financial derivatives will be included in duration calculations. The evaluation period for cost-benefit indicators will be extended to 3-5 years, guiding insurance companies towards long-term operations and nurturing patient capital. Fifthly, there are improved regulatory measures. It is clarified that regulatory actions may include regulatory discussions, issuance of regulatory opinions, special stress tests, expansion of inspection scope, requirements for adjustment of insurance business structure or asset allocation structure in accordance with laws and regulations, and other measures stipulated by laws and regulations.