The China Insurance Regulatory Commission (the "CIRC"), established on
November 18, 1998, is authorized by the State Council to conduct administration,
supervision and regulation of the Chinese insurance market, and to ensure that
the insurance industry operates stably in compliance with law. In 2003, the
State Council upgraded the CIRC from a semi-ministerial institution to a
ministerial institution directly under the State Council, and to expand the size
of the CIRC in terms of staff, internal setup, and local offices.
I. Major Responsibilities
(1) The CIRC formulates policies, strategies and plans regarding the
development of the insurance industry, drafs relevant laws and regulations
regarding insurance supervision ad regulation, and makes relevant rules for the
(2) It examines and approves the establishment of insurance companies and
their branches, insurance groups and insurance holding companies; approves in
conjunction with relevant authorities the establishment of insurance asset
management companies; examines and approves the establishment of representative
offices by overseas insurance organizations within the territory of the People¡¯s
Republic of China; examines and approves the establishment of insurance
intermediaries such as agencies, brokerages, loss-adjusting companies and their
branches; examines and approves the establishment of overseas insurance
organizations by domestic insurance and non-insurance organizations; examines
and approves the merge, split, alteration and dissolution of insurance
organizations; decides whether or not to take over an insurance company or
designates an organization to take it over; organizes or participates in the
bankruptcy and liquidation process of insurance companies.
(3) It examines and confirms the qualifications of the senior managerial
personnel in all insurance-related organizations; establishes the basic
qualification standards for insurance practitioners.
(4) It examines and approves the clauses and premium rates of insurance lines
related to the public interests, statutory insurance lines and newly developed
life insurance lines; files the insurance clauses and premium rates of the other
(5) It supervises the solvency and market conduct of insurance companies
according to law; manages the insurance security fund, and monitors the
insurance guarantee deposits; formulates rules and regulations on insurance fund
management on the basis of laws and relevant policies of the State, and
supervises insurance fund management according to law.
(6) It supervises the business operation of public-policy-oriented insurance
and statutory insurance; supervises organizational forms and operations such as
captive insurance and mutual insurance; conducts administration of societies and
organizations such as China Insurance Association and China Insurance Society.
(7) It conducts investigation into the following irregularities and imposes
penalties accordingly: unfair competition and other irregularities by insurance
organizations and practitioners, direct engagement or disguised engagement in
insurance business by non-insurance organizations.
(8) It supervises overseas insurance organizations established by domestic
insurance and non-insurance organizations according to law.
(9) It lays down standards for the information system of the insurance
industry; establishes insurance risk-assessment, risk-warning and
risk-monitoring systems; follows, analyzes and predicts the operation of the
insurance market; compiles the statistics and report forms of the insurance
industry and discloses them in accordance with relevant regulations of the
(10) Other duties commissioned by the State Council.
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