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China's insurance regulator to restrict business of insurers with low ratings

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China's insurance regulator plans to restrict the business of insurers which have a low rating for asset liability management, Reuters reported citing Xinhua. The move comes amid an industry-wide clampdown on risk and graft. The regulator said that insurers will be rated from A to D on their ability to ensure the matching of maturity, cash flow and cost on both sides of their balance sheet. Insurers with the rating of D will be banned from launching new products within a certain period. The rules are expected to come into effect in 2018.

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