New Provisions Govern the Administration of Insurance Companies

By Stuart Valentine and Ben Leung, Clifford Chance, Hong Kong

The China Insurance Regulatory Commission (CIRC) promulgated the Administration of Insurance Companies Provisions on May 13 2004 (the 2004 Provisions). The 2004 Provisions became effective on June 15 2004, and have replaced the provisions of the same name promulgated by the CIRC on January 13 2000 and amended on March 15 2002 (the 2000 Provisions). The 2004 Provisions are applicable to domestic insurance companies. In addition, the 2004 Provisions are also generally applicable to foreign-invested insurance companies, except to the extent that they are inconsistent with the specific regulations governing foreign-invested insurance companies. These latter regulations are the Administration of Foreign-invested Insurance Companies Regulations promulgated by the CIRC on December 12 2001 (the FIIC Regulations) and their implementing rules promulgated on May 13 2004 (the Implementing Rules). Here we will highlight the key differences between the 2004 Provisions and the 2000 Provisions, and look at the new requirements imposed under the 2004 Provisions.

capital requirements