Insurers seek lesser regulatory intervention

Despite Beijing's gradual relaxation of investment caps on various assets for insurance funds, regulatory intervention remains a hindrance to the industry, analysts said.

Nonetheless, they expect regulation to become less heavy-handed and the authorities to grant more liberty for insurers on where to invest the funds they manage.

With market forces playing an increasing role in the mainland's financial markets, the China Insurance Regulatory Commission has gradually eased controls since 2012, when it allowed insurers to invest more funds in the capital markets.

The regulator said last month that it was seeking opinions on insurance fund management and considering revising rules on investment ratios.

The move hinted at a further loosening of the caps on insurance funds' investment in various assets, said Wang Xujin, a professor with the Beijing Technology and Business University.

"For instance, the current 25 per cent cap on the proportion of equity investment to insurers' total assets could be raised to 30 per cent," Wang said.

Mainland insurers are also prohibited from investing more than 20 per cent of their assets in real estate and infrastructure, and a 10 per cent cap is set on private equity and funds.