China's insurance regulator on Friday said insurers must take steps to handle fraud risks and that it has issued new guidelines for the industry.

The regulator said in a statement it would take charge of anti-fraud measures for the insurance sector and seek to improve coordination among relevant authorities to prevent and mitigate fraud risks.

The news comes after the Chinese government on Friday seized control of Anbang Insurance Group Co Ltd and said its chairman had been prosecuted, a dramatic move that highlighted Beijing's willingness to curtail big-spending conglomerates as it cracks down on financial risk.