China Insurance Regulatory Commission, Administration of Insurance Brokerages Provisions

Promulgated: December 15 2004
Effective: January 1 2005
Interpreting authority: China Insurance Regulatory Commission (CIRC)

Main contents: Without the approval of the CIRC, no work unit or individual may engage in, or covertly engage in, insurance brokerage business within the territory of the PRC (Article 2). Insurance brokerages may be in the form of partnership enterprises, limited liability companies or companies limited by shares (Article 9). An insurance brokerage that takes the form of a partnership enterprise or a limited liability company shall have registered capital or capital contribution of no less than Rmb5 million. A company limited by shares shall have registered capital of no less than Rmb10 million (Article 11). Insurance brokerages may, within one year of establishment, establish three branches or sub-branches in the province, autonomous region or municipality directly under the central government of domicile (Article 18). Insurance brokerages established with the minimum amount of registered capital or capital contribution may, after one year of establishment, establish three branches or sub-branches outside the province, autonomous region or municipality directly under the central government of domicile; first-time application in each area shall have registered capital or capital contribution increased by at least Rmb1 million. No increase in registered capital or capital contribution is required where the same has reached Rmb20 million (Article 19). Insurance brokerages shall pay and deposit 20% of the registered capital or capital contribution as guarantee funds or, alternatively, purchase professional liability insurance policies (Article 24). Section Two of Part Two concerns amendment and termination. Any changes in registered capital or capital contribution, organizational format, shareholders or partners, or shareholding structure or proportion of capital contribution, of insurance brokerages shall be reported to the CIRC for approval (Article 35). Part Three concerns administration of qualifications. Section One concerns administration of qualifications to practise as insurance brokerages and practising certificates and Section Two administration of the qualifications of senior management personnel. Part Four concerns operating rules and Part Five regulation.
Related legislation: PRC Insurance Law (Amended), Feb 28 2009, CLP 2009 No.3 p35
Repealed legislation: Administration of Insurance Brokerages Provisions, Nov 16 2001, CLP 2002 No.1 p9