Cong Lin, deputy director of the General Administration of Financial Supervision, said at the 2026 Financial Street Forum Annual Insurance Conference on October 20 that overall development and safety will be maintained to firmly adhere to the bottom line that systemic risks do not occur. She mentioned that it is necessary to be highly alert to the risk of life insurance interest differences in long-term low interest rates, optimize debt structures and costs, absorb high-cost stock insurance policies in an orderly manner, and enhance cross-cycle management capabilities. First, it is necessary to improve the full-chain risk prevention and control system. She said that insurance institutions should consolidate their internal control and compliance lines, improve institutional processes, compile responsibilities at various levels, establish normalized risk monitoring and early warning mechanisms; optimize monitoring indicators, achieve early identification, early warning, and early exposure of risks, and improve emergency response plans for various types of risks, so that risks can be detected early and dealt with to a small extent. Second, keep an eye on risk prevention and control in key areas. She mentioned that it is necessary to be highly alert to the risk of life insurance interest differences in a long-term low interest rate environment, optimize debt structures and costs, absorb high-cost stock insurance policies in an orderly manner, and enhance cross-cycle management; strengthen joint asset liability management, improve interest rate transmission and debt cost adjustment mechanisms, and establish a solid foundation for steady management; strictly monitor asset-side risks, optimize asset allocation structures, strengthen liquidity risk prevention and control, and protect the insurance compensation lifeline; and also closely follow all kinds of new risks spawned by new business formats to strengthen reputational risk management. Finally, address the risks of small and medium-sized financial institutions in an orderly and steady manner. “In accordance with the principle of market-based legalization, insurance institutions with weak operations, vague positioning, and prominent risks should be promoted in an orderly manner to implement classified risk treatment, structural optimization, and business transformation, and adopt comprehensive measures to steadily mitigate stock risks and effectively curb new risks.” she said.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.