China Insurance Regulatory Commission, Administration of Reserve Funds for Non-Life Insurance Business by Insurance Companies Tentative Procedures (Trial Implementation)

Promulgated: December 15 2004
Effective: January 15 2005
Applicability: Non-life insurance business as referred to in these Procedures shall be insurance business other than life insurance business, including property insurance, liability insurance, credit insurance, short-term health insurance and accident insurance as well as the reinsurance thereof (Article 2).
Insurance companies as referred to in these Procedures shall be property insurance companies and reinsurance companies established within China, including Chinese-invested insurance companies, Sino-foreign equity joint insurance companies, wholly foreign-owned insurance companies and branches of foreign insurance companies (Article 3).

Main contents: Non-life insurance companies shall assess all types of reserve funds in accordance with non-life insurance actuarial principles and methods and the prudential principles, and accurately withdraw and transfer funds according to the assessment results (Article 4). Part Three of the Procedures covers the method of withdrawal of reserve funds. Reserve funds withdrawn by insurance companies may not be discounted (Article 17). Insurance companies shall at regular intervals submit to the China Insurance Regulatory Commission an assessment report of their reserves as signed for by the person in charge of actuary (Article 19). Insurance companies shall withdraw reserve funds according to the types of insurance or business and shall report the withdrawals before and after reinsurance (Article 21).
Related legislation: PRC Insurance Law (Amended), Feb 28 2009, CLP 2009 No.3 p35