Core Insights - The recent adjustment in the regulatory responsibilities of insurance institutions has led to a significant reduction in the number of insurance entities overseen by the Financial Regulatory Administration, from 116 to 65 by mid-2025 [2][3] - The regulatory authority for most property insurance, reinsurance, life insurance, and asset management institutions has been transferred to local regulatory bodies, while the Financial Regulatory Administration continues to oversee major insurance groups and specific institutions [1][2] Regulatory Changes - The Financial Regulatory Administration now primarily supervises 13 major insurance groups, including China Life, China Re, and Ping An, while some foreign insurance groups have shifted to local oversight [2][6] - The total number of insurance institutions has decreased to 238, with notable changes including the removal of Tianan Insurance and the addition of Suzhou Dongwu Insurance [6][7] Local Regulatory Impact - Local regulatory bodies, particularly in Beijing and Shanghai, have seen a substantial increase in the number of insurance institutions they oversee, with Beijing's count rising from 24 to 39 and Shanghai's from 24 to 36 [4][5] - The increase in regulatory responsibilities has led to heightened pressure on local regulators, necessitating stronger management accountability from insurance company executives [5][6] Specific Institutional Changes - A significant number of insurance asset management companies have transitioned to local regulatory oversight, with 21 out of 35 now under local jurisdiction [7] - The adjustment in regulatory responsibilities includes changes in the approval processes for corporate governance, solvency supervision, and market behavior monitoring, now managed by local authorities [7]

Core Viewpoint - The recent adjustment in the regulatory responsibilities of insurance institutions aims to enhance local regulatory accountability, with a significant shift in the number of institutions under the supervision of the Financial Regulatory Bureau and local regulatory agencies [4][5]. Summary by Sections Regulatory Changes - As of June 30, 2025, the number of insurance institutions under the supervision of the Financial Regulatory Bureau has decreased from 116 to 65, focusing primarily on insurance groups and their subsidiaries [2][3]. - The adjustment reflects a broader trend of local regulatory agencies taking on more responsibilities, particularly in major cities like Beijing, Shanghai, and Shenzhen [5][6]. Historical Context - This adjustment follows the 2020 reform of localized regulatory oversight, which aimed to improve the efficiency of regulatory resources and mechanisms for insurance companies [3]. Impact on Local Regulatory Agencies - Local regulatory agencies have seen a significant increase in the number of insurance institutions they oversee, with Beijing's regulatory agency increasing its responsibilities from 24 to 39 institutions, and Shanghai's from 24 to 36 [5][6]. - The increase in regulatory responsibilities has led to heightened pressure on local agencies, necessitating stronger management accountability from insurance company executives [6]. Changes in Specific Institutions - The total number of insurance institutions has decreased by one, with notable changes including the removal of Tianan Insurance and the addition of Suzhou Dongwu Insurance [7]. - Among the 16 pension and health insurance companies, 6 have shifted to local regulatory oversight, while the majority remain under the Financial Regulatory Bureau [8]. Asset Management Institutions - A total of 35 insurance asset management companies have transitioned to local regulatory oversight, with 21 of these institutions now under local agencies [10][12]. - The Financial Regulatory Bureau continues to oversee 14 asset management companies, primarily those affiliated with major insurance groups [11][13]. Local Regulatory Responsibilities - Local regulatory agencies are now responsible for various aspects of insurance institutions, including approval of executive qualifications, shareholder changes, capital increases, and debt issuance [15].