CX Daily: China’s Insurers Prepare to Shine a Light Into Their Financial Black Box

Insurers /

In Depth: China’s insurers prepare to shine a light into their financial black box

China’s insurance companies are going through a seismic change that should make their opaque finances more transparent and give investors and regulators a better understanding of their underlying financial health.

But analysts say the overhaul, which stems from two new global accounting standards, could also make insurers’ profits, revenue, assets and liabilities more volatile, and affect their tax liabilities and key regulatory metrics, including their solvency ratios, a measure of their financial strength.