The China Risk-Oriented Solvency System (C-ROSS), which was implemented at the beginning of this year, has already played a part in improving the development of product offerings, the opening up of the market and transparency in China’s insurance market, said market players and analysts.

C-ROSS, also known as China’s second generation solvency regulation system, was one of the major topics at the June 12 to 13 Lujiazui Forum, an annual two-day meeting in Shanghai. The system measures the risks that insurance companies undertake scientifically and comprehensively, ensures the solvency of China’s insurance industry while improving its overall competitiveness and promotes risk management ability across the sector.

According to the data from China Insurance Regulatory Commission, total assets of China's insurance industry have more than doubled from 5 trillion yuan ($760 billion) in 2010 to 12 trillion yuan in 2015, and the fast-expanding market is expected to grow further due to economic growth pattern shifts and nationwide urbanization.

Li Jinfu, vice chairman and general manager at China Taiping Insurance Group Ltd, said that China’s insurers now have more saying in the global market as the new regulation brings about policies and infrastructure that enable domestic and foreign players to cooperate, which in turn facilitates capital exchanges.

“The implementation of C-ROSS is particularly beneficial to insurers which are aiming to expand overseas,” said Li.

C-ROSS will also help to improve the transparency of product offerings as the framework will push forward disclosure of products and how they are traded, said Zeng Yujin, chairman of Shanghai Insurance Exchange.

“As trading data accumulates and disclosures become more complete and mature, regulators will be able to better monitor risk trends,” said Zeng.

Kai Zhang, president and CEO of Manulife-Sinochem, noted that C-ROSS also creates opportunities for foreign capital insurers worldwide because the market will naturally open up further as the regulation and management of the overall Chinese insurance industry reaches international standards.

Foreign capital insurers believe that the opening up of China’s insurance market will help to bring more benefits to consumers and corporations which require protection from various risks. Mark Tucker, CEO and president with AIA Group Ltd, likened the establishment of an insurance company to the world of football.

“New teams, players and managers can now come into the football league and the whole sport is opening up. This helps to improve the general standard of Chinese football,” said Tucker.

“We see this as a good thing and we hope that this will continue,” said Tucker.