Circular on Matters Relevant to the Implementation of the «Provisions for the Administration of the Solvency of Insurance Companies»
关于实施《保险公司偿付能力管理规定》有关事项的通知
The Circular elaborates matters concerning the Provisions for the Administration of the Solvency of Insurance Companies.
(Issued by the China Insurance Regulatory Commission on October 21 2008.)
Bao Jian Fa [2008] No.89
Insurance companies and insurance asset management companies:
(中国保险监督管理委员会于二零零八年十月二十一日发布。 )
On July 10 2008 we issued the Provisions for the Administration of the Solvency of Insurance Companies (Order of the CIRC [2008] No.1; hereinafter the “Provisions”). In order to ensure smooth implementation of the Provisions, we hereby notify you on relevant matters as follows:
保监发〔2008〕89号
1. Criteria for Assessing Minimum Capital
各保险公司，各保险资产管理公司：
(1) The minimum capital that a property insurance company is required to have is the total of the minimum capital for its non-life assurance business and the minimum capital for its non-life investment business.
2008年7月10日我会发布了《保险公司偿付能力管理规定》（保监会令〔2008〕1号，以下简称《管理规定》）。为确保《管理规定》的顺利实施，现将有关事项通知如下：
(a) The minimum capital for non-life assurance business is the greater of the following two items:
一、关于最低资本评估标准
(i) 18% of the amount below Rmb100 million and 16% of the amount at or above Rmb100 million of the company's retained premiums for the most recent financial year minus business tax and surcharges; or
（一）财产保险公司应具备的最低资本为非寿险保障型业务最低资本和非寿险投资型业务最低资本之和。
(ii) 26% of the portion below Rmb70 million and 23% of the portion at or above Rmb70 million of the company's average total claims amount for the most recent three years.
1、非寿险保障型业务最低资本为下述两项中数额较大的一项：
Total claims amount is the total of claims payments, difference in outstanding claims reserve and re-insurance claims payments minus recovered re-insurance claims and recovery revenue.
（1）最近会计年度公司自留保费减营业税及附加后1亿元人民币以下部分的18％和1亿元人民币以上部分的16％；
An insurance company that has been in operation for less than three full financial years shall use the criteria set forth in Item (i).
（2）公司最近3年平均综合赔款金额7000万元以下部分的26％和7000万元以上部分的23％。
(b) The minimum capital for non-life investment business is the total of the minimum capital for the risk premium portion and the minimum capital for the invested capital portion. The criteria for assessing the minimum capital for non-life assurance business is used to calculate the minimum capital for the risk premium portion of the non-life investment business, and the minimum capital for the invested capital portion of the non-life investment business is the total of the following two items:
综合赔款金额为赔款支出、未决赔款准备金提转差、分保赔款支出之和减去摊回分保赔款和追偿款收入。
(i) 4% of the period-end liability reserve for the invested capital in assumed income-generating non-life investment products; and
经营不满三个完整会计年度的保险公司，采用第（1）项规定的标准。
(ii) 1% of the period-end liability reserve for the invested capital in unanticipated income-generating non-life investment products.
2、非寿险投资型业务最低资本为其风险保费部分最低资本和投资金部分最低资本之和。其中，非寿险投资型业务风险保费部分最低资本的计算适用非寿险保障型业务最低资本评估标准，非寿险投资型业务投资金部分最低资本为下述两项之和：
(2) The minimum capital of a life insurance company is the total of the minimum capital for its long-term personal insurance business and the minimum capital for its short-term personal insurance business.
（1）预定收益型非寿险投资型产品投资金部分期末责任准备金的4％；
The term “long-term personal insurance business” means personal insurance business of which the term is more than one year. “Short-term personal insurance business” means personal insurance business of which the term is one year or less.
（2）非预定收益型非寿险投资型产品投资金部分期末责任准备金的1％。
(a) Minimum capital for long-term personal insurance business is the total of the following two items:
（二）人寿保险公司最低资本为长期人身险业务最低资本和短期人身险业务最低资本之和。
(i) 1% of the period-end liability reserve for investment-linked insurance products and 4% of the period-end liability reserve for other life insurance products.
长期人身险业务是指保险期间超过1年的人身保险业务；短期人身险业务是指保险期间为1年或1年以内的人身保险业务。
The term “liability reserve for investment-linked insurance products” means the unit reserve for investment-linked insurance products as determined in accordance with CIRC provisions. The term “liability reserve for other life insurance products” means the statutory minimum liability reserve after cession as determined in accordance with CIRC provisions, including the non-unit reserve for investment-linked insurance products.
1、长期人身险业务最低资本为下述二项之和：
(ii) 0.1% of the amount at risk for term life insurance with a term of less than three years, 0.15% of the amount at risk for term life insurance with a term of three years to five years and 0.3% of the amount at risk for term life insurance with a term of more than five years.
（1）投资连结保险产品期末责任准备金的1％和其他寿险产品期末责任准备金的4％。
If, in the statistical calculation, term life insurance is not broken down into terms of different length, all amount at risk shall be calculated at the rate of 0.3%.
投资连结保险产品的责任准备金，是指根据中国保监会规定确定的投资连结保险产品的单位准备金；其他寿险产品的责任准备金，是指根据中国保监会规定确定的分保后的法定最低责任准备金，包括投资连结保险产品的非单位准备金。
“Amount at risk” is the valid insured amount minus the period- end liability reserve. The term “valid insured amount” means the largest amount that the insurance company would be required to pay if an insurable accident paying out the largest benefit under the insurance contract were to occur. The “period-end liability reserve” is the statutory minimum liability reserve specified by the CIRC.
（2）保险期间小于3年的定期死亡保险风险保额的0.1％，保险期间为3年到5年的定期死亡保险风险保额的0.15％，保险期间超过5年的定期死亡保险和其他险种风险保额的0.3％。
(b) The minimum capital for short-term personal insurance business shall be calculated based on the criteria for assessing the minimum capital for non-life assurance business.
在统计中未对定期死亡保险区分保险期间的，统一按风险保额的0.3％计算。
(3) The minimum capital of a reinsurance company is the total of the minimum capital for its property insurance business and for its personal insurance business as calculated based on the respective criteria above.
风险保额为有效保额减去期末责任准备金，其中有效保额是指若发生了保险合同中最大给付额的保险事故，保险公司需支付的最高金额；期末责任准备金为中国保监会规定的法定最低责任准备金。
(4) The aforementioned criteria for assessing minimum capital shall be implemented from preparation of the solvency reports for the third quarter of 2008, except for the criteria for the assessment of the minimum capital for the invested capital portion of non-life investment business that shall be implemented as of January 1 2009.
2、短期人身险业务最低资本的计算适用非寿险保障型业务最低资本评估标准。
(5) Commencing from January 1 2009, insurance companies shall replace the original calculation form for minimum solvency levels with the minimum capital form attached hereto when preparing their solvency reports.
（三）再保险公司最低资本等于其财产保险业务和人身保险业务分别按照上述标准计算的最低资本之和。
2. Consolidated Assessment of the Branches in China of Foreign Insurance Companies
（四）上述最低资本评估标准中，除非寿险投资型业务投资金部分最低资本评估标准自2009年1月1日起执行外，其他评估标准自2008年第3季度偿付能力报告编报起执行。
(1) Foreign insurance companies that have more than one branch in China shall designate one such branch as the main reporting branch for solvency reports by October 31 2008 and report the same to the CIRC. Once the main reporting branch has been designated, it may not be changed indiscriminately.
（五）保险公司应当自2009年1月1日起，按照本通知附件规定的最低资本表替代原来的最低偿付能力额度计算表，编报偿付能力报告。
(2) The main reporter of the branches of a foreign insurance company shall treat all of the branches in China as a single reporting entity and consolidate the solvency report therefor.
二、关于外国保险公司在华分支机构并表评估
3. Time for Submission of Quarterly Solvency Reports
（一）在华有多家分支机构的外国保险公司应当在2008年10月31日之前确定偿付能力报告的主报告机构，并向我会报告。主报告机构一经确定，不得随意变更。
Commencing from the preparation of the solvency report for the fourth quarter of 2008, an insurance company shall submit within 15 days after the end of each quarter its solvency report for the quarter in question. In the event of National Day, the submission may be postponed by three days. The contents of, and the method of submission of, quarterly solvency reports shall remain unchanged.
（二）外国保险公司分支机构的主报告人应当将其所有在华分支机构视为单一报告实体，合并编报偿付能力报告。
4. Total Assets for the Purpose of Calculating the Percentages of the Application of Capital
三、关于季度偿付能力报告的报送时间
(1) When an insurance company calculates, on the basis of its total assets, the percentages of investments falling within the scope specified in laws and regulations such as financial bonds, enterprise (company) bonds, shares (equity), securities investment funds, indirect investments in infrastructure projects and overseas investments in accordance with relevant CIRC provisions, it shall treat the total amount of its assets after the deduction of the amount of securities buyback financing funds as the basis for the calculation of the percentages of its application of capital. With respect to universal life insurance, investment-linked insurance and other such insurance products for which there are special provisions governing the percentages of the application of capital, the product's booked asset value after the deduction of the amount of securities buyback financing funds shall serve as the basis for calculating the percentages of the application of capital.
从2008年第4季度偿付能力报告编报起，保险公司应当于每季度结束后15日内报送上一季度偿付能力报告，遇国庆节可以顺延3日。季度偿付能力报告的报送内容和报送方式不变。
(2) If, based on the foregoing criteria for the calculation of the percentage of applied capital, an insurance company's investments exceed the percentages on the date of the issuance hereof, it shall promptly adjust its asset structure and satisfy the criteria no later than December 31 2008.
四、关于计算资金运用比例的总资产口径
5. Specific Implementation Requirements
（一）按照我会有关规定，保险公司以公司总资产为基础，计算金融债、企业（公司）债券、股票（股权）、证券投资基金、间接基础设施项目投资以及境外投资等法律法规规定范围内的投资比例时，应以扣除证券回购融入资金金额后的公司总资产金额作为资金运用比例的计算基础。对万能保险、投资连结保险等资金运用比例有特别规定的保险产品，应以扣除证券回购融入资金金额后的产品账户资产金额作为其资金运用比例的计算基础。
(1) Raising consciousness: each company shall treat the implementation of the Provisions as key to thoroughly implementing an objective development outlook and the State Council, Several Opinions Concerning the Reform and Development of the Insurance Industry, and as an opportunity to improve the level of internal risk management and promote the company's rapid and healthy development.
（二）按照上述资金运用比例计算标准，若公司在本通知发布之日存在超比例投资的情况，应尽快调整资产结构，最迟于2008年12月31日前达标。
(2) Enhancing study and research: management of solvency has a bearing on various aspects of a company, such as its finances, product development, actuarial calculations, investments, information technology and internal controls. Accordingly, companies shall arrange for their relevant management personnel to conscientiously study the Provisions so as to ensure that they grasp the spirit and content of the Provisions.
五、关于具体实施要求
(3) Due and thorough implementation: each company shall improve its internal solvency management mechanism and make compliant its internal risk management procedures in strict accordance with the requirements of the Provisions so as to ensure adequate solvency.
（一）提高思想认识。各公司应当把《管理规定》的实施作为贯彻落实科学发展观和《国务院关于保险业改革发展的若干意见》的一项重点工作来抓，以实施《管理规定》为契机，完善和提高内部风险管理水平，促进公司快速、健康发展。
6. If you should have any suggestions in respect of the implementation of the Provisions or encounter problems in the course of implementation, please contact the Financial Regulation Section of our Finance and Accounting Department.
（二）加强学习研究。偿付能力管理涉及公司财务、产品开发、精算、投资、信息技术、内控等各个环节，各公司应当组织有关管理人员认真学习《管理规定》，确保公司管理人员能够掌握《管理规定》的精神和内涵。
Contact persons: Wang Zheng, Guo Jing
（三）认真贯彻落实。各公司应当严格按照《管理规定》的要求，完善内部偿付能力管理机制，规范内部风险管理流程，确保偿付能力充足。
Telephone: 010-6628612566286182
六、如有《管理规定》实施方面的建议或实施过程中遇到问题，请与我会财务会计部财务监管处联系。
Appendix: Minimum Capital Form
| Company name: | (___ quarter) of ___ | Unit: | ||
| No. | Item | Line no. | Figure at period end | Figure at start of period |
| 1 | Risk premium portion of non-life assurance business and non-life investment business or short-term personal insurance business | |||
| Direct premium revenue for the most recent financial year | (1) | |||
| Inward reinsurance premiums | (2) | |||
| Outward reinsurance premiums | (3) | |||
| Retained premiums | (4) = (1) + (2) - (3) | |||
| Business tax and surcharges | (5) | |||
| Net value: portion below Rmb100 million | (6) | |||
| Net value: portion at or above Rmb100 million | (7) | |||
| Minimum capital A | (8) = (6) × 18% + (7) ×16% | |||
| Total claims amount for the most recent year | (9) | |||
| Total claims amount for the year preceding the most recent year | (10) | |||
| Total claims amount for the year two years preceding the most recent year | (11) | |||
| Average value for the three years: portion below Rmb70 million | (12) | |||
| Average value for the three years: portion at or above Rmb70 million | (13) | |||
| Minimum capital B | (14) = (12) ×26% + (13) ×23% | |||
| Minimum capital for the risk premium portion of non-life assurance business and non-life investment business or for short-term personal insurance business | (15) = max [ (8), (14) ] | |||
| 2 | Invested capital portion of non-life investment business | |||
| Liability reserve for the portion of invested capital in assumed income-generating non-life investment products | (16) | |||
| Minimum capital for the portion of invested capital in assumed income-generating non-life investment products | (17) = (16) × 4% | |||
| Liability reserve for the portion of invested capital in unanticipated income-generating non-life investment products | (18) | |||
| Minimum capital for the portion of invested capital in unanticipated income-generating non-life investment products | (19) = (18) × 1% | |||
| Minimum capital for the portion of invested capital in non-life investment business | (20) = (17) + (19) | |||
| 3 | Long-term personal insurance business | |||
| Liability reserve for investment-linked insurance business | (21) | |||
| Minimum capital for investment-linked insurance business | (22) = (21) ×1% | |||
| Liability reserve for other life insurance business | (23) | |||
| Minimum capital for other life insurance business | (24) = (23) ×4% | |||
| Amount at risk for term life insurance with a term of less than three years | (25) | |||
| Amount at risk for term life insurance with a term of three years to five years | (26) | |||
| Amount at risk for term life insurance with a term of more than five years | (27) | |||
| Amount at risk for permanent life insurance | (28) | |||
| Minimum capital for term and permanent life insurance | (29) = (25) ×0.1% + (26) ×0.15% + (27) ×0.3% + (28) ×0.3% | |||
| Amount at risk for other insurance types | (30) | |||
| Minimum capital for other insurance types | (31) = (30) ×0.3% | |||
| Minimum capital for long-term insurance | (32) = (22) + (24) + (29) + (31) | |||
| 4 | Total of minimum capital | (33) = (15) + (20) + (32) | ||
联系人：王证、郭菁
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