C-ROSS: Preparing for Solvency II with Chinese Characteristics

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
August 19, 2014
Regulation
Asia-Pacific

Abstract

The Chinese insurance industry is one of the largest in the world and is growing fast. It is also an industry undergoing immense change, driven by economic growth, consumer demand and an active regulator. C-ROSS is the Chinese equivalent of Solvency II: a modern, risk-based regulatory capital framework which is expected to go into effect in 2015. In this article we identify some of the strategic opportunities and challenges C-ROSS presents to the industry and provide a recommended action plan for senior management. We also compare C-ROSS with Solvency II and consider some of the “Chinese characteristics” of the draft regulations.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

State of the Insurance Industry in China

1

Changing Solvency Regime

2

Anticipated Impact on the Industry

4

Seven Imperatives: Actions for CEOs, CFOs, and CROs to Prepare for C-ROSS

6

Conclusion

8

Appendix: Oliver Wyman Experience and Capabilities in This Area

10

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