BEIJING, April 11 (Xinhua) -- A senior official said Tuesday that the insurance industry is exposed to compounded risks.
There are four major risks facing China's insurance industry, said Chen Wenhui, vice chairman of China Insurance Regulatory Commission (CIRC).
Solvency risks, liquidity pressures, poor corporate governance and external issues including uncertainties of global politics and economy weigh on the sector, said Chen.
The CIRC said Monday it will tighten regulations for the industry to avoid systemic crisis.
The industry should focus on its insurance business and regulators should strictly enforce regulations, it said in a statement.
The insurance sector should guard against financial risks, support supply-side structural reform and help promote the development of the real economy, said the statement.
The statement came after China's top anti-graft authority announced that Xiang Junbo, chairman of the CIRC, was being investigated for a suspected serious violation of the code of conduct of the Communist Party of China.
Xiang is also Party chief of the CIRC.
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