China Insurance Regulatory Commission, Provisions for the Administration of Insurance Companies

中国保险监督管理委员会保险公司管理规定

November 02, 2009 | BY

clpstaff &clp articles &

Entry threshold for insurance companies raised.

Clp Reference: 3910/09.09.25 Promulgated: 2009-09-25 Effective: 2009-10-01

Promulgated: September 25 2009

Effective: October 1 2009

Main contents: According to the revised Provisions, to establish an insurance company, the proposed registered capital shall be not less than Rmb200 million (Article 7).

In the case of setting up an establishment, an insurance company shall be fully solvent during the previous financial year, and fully solvent for two quarters in succession before the submission of the application. If the application is for an establishment, other than a provincial-level branch, to be established in a province, autonomous region or municipality directly under the central government other than the place of domicile, the relevant provincial-level branch shall have commenced operations (Article 18).

The ranking of the establishments of insurance companies is, in descending order, as follows: branches, central sub-branches, sub-branches and business offices or marketing service offices. An insurance company may ignore the ranking order in managing its establishments, however, business offices and marketing service offices may not manage any other establishments (Article 15).

Related legislation: PRC Insurance Law (Amended) , Feb 28 2009, CLP 2009 No.3 p.35; and PRC Company Law (Amended) , Oct 27 2005, CLP 2005 No.10 p.21

Repealed legislation: Provisions for the Administration of Insurance Companies, May 13 2004, CLP 2004 No.6 p.43 clp reference:3910/09.09.25prc reference:保监会令 [2009] 第1号promulgated:2009-09-25effective:2009-10-01

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]