On August 5, financial news reported that the National Financial Regulatory Administration has issued a response to a proposal from the Fourth Session of the 14th National Committee of the Chinese People's Political Consultative Conference. It stated that, building on prior work, the Administration, in collaboration with the Ministry of Finance, has jointly drafted the Measures for the Implementation of Professional Liability Insurance for Accounting Firms and conducted multiple rounds of discussions to solicit feedback from various parties.

Currently, the Administration and the Ministry of Finance have reached a consensus on the revised Implementation Measures, which are expected to be jointly issued soon. The revised Implementation Measures adhere to market-oriented and rule-of-law principles, encouraging and guiding insurance companies to fully leverage the advantages of liability insurance to protect the legitimate rights and interests of clients and other stakeholders.

For example, the revised measures explicitly link administrative penalty records, litigation status, and historical claims data of accounting firms to insurance premium rates, making the "reward for good behavior and penalty for bad behavior" rate adjustment mechanism more scientific. They also encourage insurance companies to use a co-insurance model to enhance underwriting capacity. Additionally, the revised measures specify that, on top of the primary policy, coverage for lost documents and extension of the retroactive period for first-time coverage can be offered as additional riders, diversifying insurance product options to meet varied needs.

While promoting development, the revised Implementation Measures also outline supervision and management requirements for relevant parties to ensure the lawful and compliant operation of professional liability insurance for accounting firms. This includes establishing a professional liability insurance expert committee to provide expert opinions or recommendations for reference by judicial authorities or relevant parties, thereby improving claim settlement efficiency. It also clarifies that financial and insurance regulatory authorities can conduct inspections and supervision of professional liability insurance operations, and it mandates the establishment of regular communication mechanisms between the respective associations and industry regulators to enhance data sharing and coordination.

Looking ahead, the National Financial Regulatory Administration will actively cooperate with the Ministry of Finance to finalize the issuance of the revised Implementation Measures and oversee subsequent implementation. In collaboration with the Ministry of Finance and other relevant entities, it will work to develop model clauses for the professional liability insurance industry. Furthermore, it will guide the insurance sector to continuously optimize underwriting and claims services, increase business promotion efforts, and steadily expand the coverage of professional liability insurance for accounting firms.