China Insurance Regulatory Commission, Guidelines for Contingency Administration of Major Unexpected Events in Insurance Asset Management
中国保险监督管理委员会保险资产管理重大突发事件应急管理指引
July 02, 2007 | BY
clpstaff &clp articles &The CIRC reinforces contingency administration of major unexpected events in insurance asset management.
Promulgated: May 30 2007
Effective: As of date of promulgation
Interpreting Authority: China Insurance Regulatory Commission (CIRC)
Applicability: The phrase "major unexpected events in insurance asset management" refers to the major events faced by insurance institutions that arise suddenly, and that have caused or may cause a huge amount of loss to the insurance funds and jeopardize the normal operation of insurance asset management (Article 2). The term "insurance institutions" refers to insurance group (holding) companies, insurance companies and insurance asset management companies (Article 3).
Main Contents: Insurance institutions shall report to the CIRC major unexpected events that cause or may cause a major loss to insurance assets arising from circumstances such as:
(1) unforeseen events such as violent fluctuations in the financial market;
(2) changes in the market environment or the relevant policies, or influence from other correlated unexpected events;
(3) the close-down or the experience of other risks of a counterparty, relevant intermediary or debtor of the insurance institution; and
(4) illegal appropriation of insurance funds resulting from the control of internal parties of, an affiliated transaction of, or provision of security to an external party by, the insurance institution (Article 6).
Insurance institutions shall, based on preliminary prediction and evaluation, report to the CIRC in a timely manner major unexpected events in insurance asset management that have caused or may cause a loss of over Rmb50 million or over 0.1% of the institution's total assets to the insurance assets. Major unexpected events of a serious nature or with a major impact involving an amount lower than the aforementioned amount shall also be reported to the CIRC in a timely manner (Article 8). There are three types of reports on major unexpected events in insurance asset management: early reports, continuous reports and reports on the results (Article 25).
Related Legislation: Contingency Measures for Major Unexpected Events of the Insurance Industry Provisions, Dec 18 2003, CLP 2004 No.2 p.6; and Contingency Plans for Unexpected Events of the Insurance Industry
clp reference:3900/07.05.30promulgated:2007-05-30effective:2007-05-30This premium content is reserved for
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