China to Audit Major Insurers, Targeting Investment Risks
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A key focus in 2026 will be insurers’ investment activities, sources said. Photo: VCG
China’s top financial regulator has selected five insurers, including Ping An Life Insurance Co. of China Ltd. and PICC Property and Casualty Co. Ltd., along with nine asset management firms for comprehensive on-site inspections in 2026.
The mandatory audits are high-stakes reviews of operational compliance and capital use that have historically uncovered violations leading to multimillion-yuan fines.
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- China’s NFRA will conduct on-site inspections of five insurers and nine asset managers in 2026, focusing on solvency, compliance, risk management, investments, and governance.
- Insurers’ investment balances hit 38.48 trillion yuan ($5.6 trillion) at end-2025, up 15.7% year-on-year; regulators are investigating prohibited investments and related-party transactions.
- Previous audits led to multimillion-yuan fines for regulatory violations; Ping An Life and others were fined for issues like inaccurate reporting and unapproved sales practices.
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Who’s Who
- Ping An Life Insurance Co. of China Ltd.
- Ping An Life Insurance Co. of China Ltd. is one of five insurers chosen for comprehensive on-site inspections in 2026 by China's top financial regulator. The inspections, which will review operational compliance and capital use, come seven years after the company's last inspection. A rise in consumer complaints, possibly linked to its decentralized operating model, may have contributed to its inclusion.
- PICC Property and Casualty Co. Ltd.
- PICC Property and Casualty Co. Ltd. is one of five insurers selected by China's financial regulator for comprehensive on-site inspections in 2026. These mandatory audits are high-stakes reviews of operational compliance and capital use. The inspections cover solvency, compliance, risk management, internal controls, financial data accuracy, investment activity, and corporate governance.
- China Life Property & Casualty Insurance Co. Ltd.
- China Life Property & Casualty Insurance Co. Ltd. is among the five insurers selected for comprehensive on-site inspections in 2026 by the National Financial Regulatory Administration (NFRA). These mandatory audits scrutinize operational compliance and capital use and have historically uncovered violations leading to significant fines. The inspections, typically lasting two to three months, cover various aspects including solvency, risk management, and financial data accuracy.
- PICC Pension Co. Ltd.
- PICC Pension Co. Ltd. (中国人保养老保险股份有限公司) is one of five insurers selected by China's top financial regulator, the National Financial Regulatory Administration (NFRA), for comprehensive on-site inspections in 2026. These mandatory audits are high-stakes reviews of operational compliance and capital use.
- Taiping Pension Co. Ltd.
- Taiping Pension Co. Ltd. (太平养老保险股份有限公司) is one of the five insurers selected by the National Financial Regulatory Administration (NFRA) for comprehensive on-site inspections in 2026. These mandatory audits will review operational compliance and capital use.
- Taikang Insurance Group
- Taikang Insurance Group will undergo follow-up checks on earlier rectifications by China's National Financial Regulatory Administration (NFRA) in 2026. This comes after Taikang Life Insurance Co. Ltd., a subsidiary, was fined millions of yuan in July 2025 for violations like unapproved rate use and improper sales, which the company stated it had rectified.
- China Pacific Property Insurance Co. Ltd.
- China Pacific Property Insurance Co. Ltd. will undergo follow-up checks in 2026 by the National Financial Regulatory Administration (NFRA). These checks are to ensure compliance with rectifications made after previous violations. In July 2025, China Pacific Insurance units were fined millions of yuan for issues including unapproved rate use and inaccurate reporting.
- China Pacific Life Insurance Co. Ltd.
- China Pacific Life Insurance Co. Ltd. (中國太平洋人壽保險股份有限公司) will undergo follow-up checks in 2026. These checks are to verify rectifications made in response to earlier regulatory findings. The National Financial Regulatory Administration (NFRA) fined China Pacific Insurance units millions of yuan in July 2025 for violations including unapproved rate use and inaccurate reporting.
- Taikang Life Insurance Co. Ltd.
- Taikang Life Insurance Co. Ltd. was fined millions of yuan in July 2025 by the NFRA for violations. These included using unapproved rates, inaccurate reporting, and improper sales. The company has since stated that it completed rectifications for these issues.
- Yongcheng Insurance Asset Management Co. Ltd.
- On February 27, Yongcheng Insurance Asset Management Co. Ltd. (永诚保险资产管理有限公司) received a 1.2 million yuan fine. This penalty was issued for noncompliant asset management practices and inaccuracies in their financial data.
- Taiping Asset Management Co. Ltd.
- Taiping Asset Management Co. Ltd. was penalized in mid-2025 for issues including unauthorized executives and noncompliant trust investments. This occurred during heightened scrutiny of insurers' investment activities, with regulators examining decision-making, execution, and post-investment disclosures, as well as fund flows between insurers and asset managers.
- BOCOM MSIG Life Insurance Asset Management Co. Ltd.
- BOCOM MSIG Life Insurance Asset Management Co. Ltd. was penalized in mid-2025 by the National Financial Regulatory Administration (NFRA). The company faced penalties for issues including having unauthorized executives and making noncompliant trust investments. This is mentioned in the context of increased scrutiny on insurers' investment activities.
- Ping An Insurance (Group) Co. of China Ltd.
- Ping An Insurance (Group) Co. of China Ltd. is a prominent insurer whose subsidiaries faced over 70 million yuan in fines in May 2024 for banking, property, and health unit violations. Its subsidiary, Ping An Life, was among five insurers selected for comprehensive on-site inspections in 2026. This comes after its last inspection approximately seven years ago, and a rise in consumer complaints may have contributed to its inclusion.
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What Happened When
- 2019：
- Ping An Life Insurance Co. was last inspected.
- May 2024：
- Ping An Insurance (Group) Co. of China Ltd.'s subsidiaries were fined more than 70 million yuan for compliance violations in its banking, property, and health units.
- Through 2024：
- Ping An Insurance spent five years addressing regulatory demands and strengthening compliance.
- End of 2024：
- China's insurers’ outstanding investment balance was used as a base to calculate a 15.7% year-on-year increase by the end of 2025.
- July 2025：
- The NFRA fined China Pacific Insurance units and Taikang Life Insurance Co. Ltd. millions of yuan for violations, including unapproved rate use, inaccurate reporting and improper sales.
- Mid-2025：
- Taiping Asset Management Co. Ltd. and BOCOM MSIG Life Insurance Asset Management Co. Ltd. were penalized for unauthorized executives and noncompliant trust investments.
- As of 2025：
- The companies fined in July 2025 reported they had completed rectifications.
- End of 2025：
- China’s insurers’ outstanding investment balance reached 38.48 trillion yuan ($5.6 trillion), up 15.7% year on year.
- Feb. 27, 2026：
- Yongcheng Insurance Asset Management Co. Ltd. was fined 1.2 million yuan for noncompliant asset management and inaccurate financial data.
- Around March 13, 2026：
- NFRA teams entered Ping An Life Insurance Co. for on-site inspections.
- 2026：
- NFRA scheduled comprehensive on-site inspections of five insurers and nine asset management firms including Ping An Life Insurance Co. of China Ltd. and PICC Property and Casualty Co. Ltd.
AI generated, for reference only
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