China’s National Financial Regulatory Administration (NAFR) announced the decision to extend the transition period of the Solvency Regulation (II) for insurance companies, which was originally scheduled to end at the end of 2024, to the end of 2025.

For insurers whose solvency ratio is notably affected by the switch between the old and the new rules, they may communicate with the NAFR before January 15, 2025 to determine the transition policy, and the NAFR will then determine the transition policy on a division-by-division basis before the end of February 2025.

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If an insurer has already enjoyed the transition policy, the transition policy for 2025 shall not be better than the policy for the last year of the transition period.

For insurers directly supervised by the NAFR, they should communicate with the Department of Institutional Supervision of the NAFR, and the NAFR will determine the transition policy; for insurers supervised by the various financial supervisory authorities, they should communicate with their respective financial supervisory authorities, and their respective financial supervisory authorities should put forward a preliminary proposal, which will be reported to the Department of Institutional Supervision of the NAFR for review and approval, before then the transition policy is determined.