The China Banking and Insurance Regulatory Commission held a news conference on Tuesday to respond to some high-profile questions.

Henan province was hit by torrential rain in July, resulting in heavy casualties and property loss.

According to the CBIRC, the insurance industry of Henan province has received a total of 513,200 claims, with initial assessments of loss at around 12.4 billion yuan from July 17 to Aug 25. Currently, 346,000 cases have been closed, paying out 6.89 billion yuan and accounting for 67 percent of the total. The case settlement rate in personal injury, car and agricultural insurance are 76, 86 and 76 percent, respectively. Moreover, compensation for total loss of autumn grain crops exceeded 94 percent.

By the end of July, real estate loans grew at an eight-year low. Real estate loans from the banking industry increased 8.7 percent year-on-year, 3 percentage points lower than the growth rate of other loans; the proportion of real estate loans to all loans fell 0.95 percent year-on-year; the balance of real estate trust decreased by about 15 percent, and the balance of wealth management products related to real estate fell 42 percent year-on-year.

The CBIRC urged banking institutions to provide differentiated support to people with rigid demand in terms of down payment ratios and interest rates. By the end of July, personal mortgage loans for first homes accounted for 92 percent, and loans in the home rental market grew 29 percent year-on-year.

After the car insurance reform launched on Sept 19 last year, the move help the Chinese car insurance consumer to reduce expenditure of 170 billion yuan, which basically completed the phased goals of 'lowering prices, increasing guarantees and improving quality the CBIRC said.

By the end of July, the average insurance premium for a car was 2,774 yuan, decreasing 21 percent from before the car insurance reform, and 88 percent of car insurance consumers' premium spending declined.

In addition, the national car insurance comprehensive, car insurance procedure and car business and management expense rates decreased by 11.8, 7.3 and 5 percent, respectively. The combined loss ratio of car insurance rose to 73.3 percent from 56.9 percent before the reform.

Currently, the proportion of car insurance business in property insurance dropped to 51.8 percent, down 5.4 percentage points year-on-year, bringing the proportion close to the average level of major economies in the world.

Since 2018, the CBIRC has approved more than 100 foreign banking and insurance institutions in the Chinese mainland. By the end of the first six months, foreign banks have set up 41 foreign-funded banks, 115 foreign bank branches and 139 representative offices, with a total of 930 business institutions and total assets of 3.73 trillion yuan in the country. Moreover, overseas insurance institutions have set up 66 foreign-funded insurance firms, 85 representative offices and 17 professional insurance intermediaries, with total assets of 1.94 trillion yuan.

The CBIRC said it would continue to prudently open up the banking and insurance industries, and fully implement the management system of pre-establishment national treatment plus a negative list to attract high-quality foreign investment with specialized characteristics into the Chinese market. Furthermore, it will further optimize regulatory rules and improve the business environment, and strengthen oversight to prevent financial risks.