On August 24-25, 2015, CISFC was invited to attend the international meeting of insurance guarantee mechanism under the theme of “Recovery and Resolution of Insurance Companies” hosted by the Perbadanan Insurans Deposit Malaysia (“PIDM”).
The meeting discussed five topics: First, the risk monitoring and early intervention mechanism of PIDM; Second, channel, valuation method and application dilemma relating to bankruptcy resolution of insurance companies; Third, problems and challenges in the practices of recovery and resolution of insurance companies; Fourth, outlook of the Malaysian insurance market; Fifth, functions and roles of the insurance guarantee system. The representatives of the insurance guarantee institutions from Canada, Britain, Germany, Japan, Singapore, Chinese Taiwan, other countries/regions, and CISFC shared their opinions and discussed relevant topics.
The CISFC’s report introduced the development of China’s insurance security fund system as well as the direction of further exploration and innovation. In the future, CISFC will consider the possibility of the establishment of the differential premium systems for the fund, and explore the mechanism for collection of the insurance security fund based on risk levels of insurance companies. Secondly, CISFC will perform risk monitoring in depth, gradually establish a risk monitoring and warning system specific to CISFC, explore the preparation and publishing of the industry climate index and insurance consumer confidence index, and thus further extend the risk assessment and warning function of CISFC. Thirdly, CISFC will accelerate the pace to build and refine the risk resolution system, including implementation of the takeover system, explore the way to realize the “early correction” function, and refine the remedy scope and standard of the security fund.
By attending the meeting, CISFC has better understood international peers’ practices in the recovery and resolution of insurance companies, and by presenting the development and exploration of China’s insurance security system, CISFC has deepened international peers’ understanding and knowledge of China’s insurance security system, and enhanced the international awareness of China’s insurance security system and CISFC.