On a warm summer afternoon, it is so inviting to be in a swimming pool. The roaring insurance sector is persuading the crowds of the consumers, firms and investors in terms of refreshing the security as well as cash. Just behind the booming insurance industry is a summerlike business environment that has been made simpler than ever for companies to provide and the consumers will buy all of the insurance types. A regulatory simplification of the business launched by the China Insurance Regulatory Commission or CIRC just in 2012 and then polish some since it has helped the insurance firms expand and then profit from the investments in the stocks, different financial products as well as bonds.
It has persuaded a ground breaking spirit, since lots of new insurance firms have started in the current years and since February, over a hundred were looking for business licenses. The simplification as well as the continuous rise has been the trademark of Xiang Junbo's tenancy with the CIRC chairman. In 2011, he took the job in 2011 and since then it has been behind the commerce improvements in places like as insurer fund investments, farm policies and policy premium rates. On the 22nd of February, there was an interview with Caixin, Xiang has known that the reform, climate is becoming progressively complex being given the economic downturn. That has been spreading through China in 2014.
However, he is just so confident that the regulatory facilitation which is still the right thing to do, especially since it has gained the support from the officers at a higher level in Beijing. It was just after some time that they took the post and work as a CIRC chairman, some of the ministry leaders in the central government told them that on a prime task for the insurance business has been to loosen up the insurance fund investments. This is in accordance with the statement released by Xiang. He also said that the industry faces different hurdles and probabilities too.
In terms of the dangers involve, Xiang has accepted that there are some risks involved as the economy goes down and the sector expands when it comes to the companies, assets, investments and even clients. There must be a caution in terms of the watchword for a lot of small newbies in the business in which having found an earning aspect, there are also some non-conventional and even short term insurance plants as well. The analysis has just said that the plans can actually give ample coverage for just around 3 months, however, it can generate most of the offering consumers with high payouts, that may also lead in generating liquidity dangers for the business underweights.
Just in the past, the life insurance firms, rarely had issues with liquidity since the debts were long term. This is in accordance with Zhou Xing, who is a partner at the China insurance division of the PricewaterhouseCoopers. However, at the moment, he added, the short term liabilities are actually placing the companies at a greater risk. In terms of the business opportunities, the risks have been soaked in the insurance business environment. In accordance to the source who wants to stay anonymous, in the latter part of February, the CIRC has been processing the applications from over a hundred thirty firms that would like to start with selling the insurance. Just lately, the officials of the CIRC in a conference with the insurance firm claimed that most of the shareholders were actually using the insurers to boost the funds for some other firms.