The Chinese insurance industry is one of the largest in the world and is growing fast. It is also an industry undergoing immense change, driven by economic growth, consumer demand and an active regulator. C-ROSS is the Chinese equivalent of Solvency II: a modern, risk-based regulatory capital framework which is expected to go into effect in 2015. In this article we identify some of the strategic opportunities and challenges C-ROSS presents to the industry and provide a recommended action plan for senior management. We also compare C-ROSS with Solvency II and consider some of the “Chinese characteristics” of the draft regulations.