It is reported that China Insurance Regulatory Commission (CIRC) is in the midst of introducing a series of measures aiming at preventing the risks in the utilization of insurance funds. Besides, CIRC also keeps a close eye on insurance firms that are known for their aggressiveness.

The research team at ANBOUND Consulting is of the view that on the one hand, the utilization of insurance funds faces many challenges as many insurance firms consider insurance merely as a platform to procure long-term, low-cost financing.

On the other hand, the problems at the insurance market have much to do with the ineffectiveness of CIRC in regulating the market.

Instead of covering up the mistakes, the regulatory authorities should make use of system and mechanism to regulate the insurance firm and prevent the occurrence of systemic market risk.