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The vice director of the development and reform department at CIRC, Fang Yongbin, said this is the first set of rules on risk management in the insurance industry. The principle is to help the insurance companies establish a sound risk management system.

Fang said the boards of insurance companies should consider risk management a crucial part of business strategy and take responsibility of it. He added this is the only way to prevent risk and ensure benefits both to the insured and insurer.

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