China regulator says market turmoil may affect insurers

Chinese elderly at a park China's insurers may find it more difficult to pay policy holders.

China's insurance regulator says market turmoil has affected the ability of some insurers to make payments to policyholders.

Chen Wenhui, vice chairman of the China Insurance Regulatory Commission, made the remarks at a forum in Beijing.

Insurers' solvency ratios, the ability to make payments on policies, are falling due to market losses, he said.

Mr Chen pledged to help insurers by guiding them through fund-raising in Hong Kong.

"If European and US debt problems continue to deepen, liquidity tightens and financial markets suffer losses, then insurers will be under pressure," he added.

But despite the general market uncertainty, a number of Chinese insurers plan to list later this year and next year, including New China Life Insurance and the People's Insurance Company of China.

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