CHENGDU, Dec. 23 (NBD) -- The China Insurance Regulatory Commission (CIRC) is planning to strengthen supervision over the credit and guarantee insurance business on Internet platforms. 

The regulator's exposure draft of the Notice on Strengthening the Administration of the Guarantee Insurance Business on Internet Platforms includes quantitative regulations to oversee the business, covering business principles, credit information sharing, product development requirements, insurance coverage control, underwriting capacity, reserve valuation, and maximum loss control. 

It is stipulated that regarding the guarantee insurance business conducted online, the insured amount of single policy holder, either a legal person or organization, shall not exceed 5 million yuan (about 720,000 US dollars). Insurance companies are also urged to build stop-loss mechanisms and risk management system covering the entire business process to minimize possible loss and operational risks. 

A source with a medium/small-sized financial insurance company told NBD that the exposure draft is more feasible as compared to the normative document released in January, as detailed rules are specified to guide the development of the guarantee insurance business on Internet platforms.