Circular on Issues Relevant to Reinsurance Business Safety
关于再保险业务安全性有关问题的通知
The Circular provides guidelines to reinsurance contracts and retrocession contracts whose term commences on or after January 1 2008 as to risk management mechanism, financial strength ratings, paid-in monetary capital, solvency and trading history requirements for the selection of a reinsurance cedent.
(Issued by the China Insurance Regulatory Commission on November 15 2007.)
Bao Jian Fa [2007] No.112
Insurance companies:
With the rapid development of the insurance market in China, the task of guarding against risks has become increasingly onerous. As the principal means of guarding against risks and spreading risks, the function of reinsurance has increasingly come to the fore. However, the reinsurance market itself poses certain risks, and, in particular, factors such as the solvency, financial position and profitability of a reinsurer have a material impact on the stable operations and healthy development of a cedent. With a view to thoroughly implementing the spirit of the 2007 National Insurance Conference, strengthening the establishment by the insurance industry of mechanisms for guarding against risks, improving the insurance industry's capacity to counter risks and promoting the rapid and healthy development of the insurance market, we hereby notify you concerning relevant issues as follows:
(中国保险业监督管理委员会于二零零七年十一月十五日发布。)
保监发 [2007] 112号
各保险公司：
随着我国保险市场的快速发展，风险防范任务日益艰巨。作为风险防范和风险分散的主渠道，再保险的功能作用日益突出。然而，再保险市场本身也存在一定风险，特别是再保险接受人的偿付能力、财务状况、盈利能力等因素，对分出公司的稳定经营和健康发展影响重大。为贯彻落实2007年全国保险工作会议精神，加强保险业风险防范机制建设，提高保险业抗风险能力，促进保险市场又快又好发展，现就有关问题通知如下：
1. A reinsurance cedent shall establish a sound risk management mechanism and strengthen its management of the risks involved in reinsurance business.
(1) A cedent shall improve its risk assessment system and risk control mechanism, review its reinsurance plan each year, establish objective reinsurance business assessment standards, examine its risk position, including its reinsurance risks, periodically assess its risks, and establish a mechanism for the identification, assessment and monitoring of risks.
一、再保险分出公司应建立完善的风险管理机制，强化对再保险业务的风险管理。
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