The China Insurance Regulatory Commission warned on Monday that domestic insurers may not have enough cash on hand to make payments to policyholders, the Wall Street Journal reported. The solvency ratios of many Chinese insurers have deteriorated due to a combination of rapid growth in policy issuance and sagging stock market performance. Insurers are dependent both on cash reserves and equity investments to cover claims and payouts; the Chinese stock markets have declined 16% so far this year. The regulator said it would help insurers tap the Hong Kong offshore renminbi market for funds by issuing bonds. At the same time, the regulator is examining ways to help insurers use domestic bond markets and list bonds on stock exchanges. Standard & Poor’s rating service said in July that Chinese insurers need to raise more than US$17.25 billion in fresh funds to support continued growth over the next three years.