In order to facilitate the healthy development of the insurance industry and strengthen current pre-sale procedure for insurance products to help the insurance industry enhance insurance product structure and encourage sound operation of insurance companies, the FSC introduced amendments to article 24 and article 32 of the Regulations on November 8, 2017. Key points of the amendments are as follows:
1. Related measures for enhancing the mission functions of theinsurance product management team (“the management team”):
(1) The management team shall regularly review important information of all products and necessary response measures. If any adjustment is necessary according to the review result, the team
(2) The management team is now requi red to assess the implementation status of the asset allocation plan for life insurance products for over one year, incorporate premium (rates) adequacyinto the analysis on pricing reason ableness of insurance products and review significant after-sale deviation from actuarial assumptions for major life insurance products approved by the competent authority.
2. In order to give insurance companies time to make adjustments to their information system and administration procedures according to the amendments, the amendments will take effect on Jan 1,2018.