CIRC no harsher at foreign insurance institution in its entry rules

Updated: 2011-04-11 15:04
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CIRC no harsher at foreign insurance institution in its entry rules

The China Insurance Regulatory Commission on Mar 31 released administrative rules on foreign insurance institutions' representative offices in China to solicit public opinion. It is the third time it has amended the related regulations.

Compared with the 2006 and 2008 versions, the new regulations add the following specifications:

First, the rules define foreign insurance institutions as insurance group companies, insurance companies, insurance intermediaries, insurance associations and other insurance organizations incorporated outside China. The new administrative rules exclude foreign reinsurance companies from the alleged insurance institutions, marking a departure from the 2006 version.

The insurance intermediaries are defined as insurance brokerage firms, insurance agencies and insurance survey and loss adjuster companies incorporated outside China.

Second, a comparison with the 2008 version shows the regulations not only set more detailed thresholds for foreign insurance institutions’ revocation of representative offices but also add detailed requirements for foreign insurance intermediaries opening representative offices in China.

Third, the new draft cancelled the 9th clause in the 2006 version saying the approval document would be invalidated if representative offices fail to submit a written report to the CIRC within 3 months of its issuance.

The new draft also places stricter demands on...

The full text is available in the April Issue of China Insurance. Please visit E-Shop for more subscription details.