Tentative Measures for the Graded Regulation of Establishments of Insurance Companies
保险公司分支机构分类监管暂行办法
The Measures classify establishments of insurance companies into four grades based on the companies' risk positions and impose regulatory measures accordingly.
(Issued by the China Insurance Regulatory Commission on, and effective as of, May 25 2010.)
(中国保险监督管理委员会于二零一零年五月二十五日公布施行。)
Bao Jian Fa [2010] No.45
Part One: General provisions
Article 1: These Measures have been formulated in accordance with laws and regulations such as the PRC Insurance Law and relevant provisions of the China Insurance Regulatory Commission (the CIRC) in order to guard against and mitigate industry risks, rationally allocate regulatory resources and enhance regulatory efficiency.
保监发〔2010〕45号
第一章 总则
Article 2: For the purposes of these Measures, the term “insurance company” means a commercial insurance company, the establishment of which is approved by the CIRC and that is registered in accordance with the law. For the purposes of these Measures, the term “establishment of an insurance company” means a branch, central sub-branch, sub-branch, business office, sales service office or other such establishment established by an insurance company in accordance with the law with the approval of the CIRC.
Article 3: For the purposes of these Measures, the term “graded regulation” means the practice whereby an insurance regulator, based on objective information, comprehensively analyses and assesses the risks which establishments of insurance companies face, classifies them into specific regulatory grades based on the results of the assessment and takes tailored regulatory measures in respect thereof.
第一条 为防范、化解行业风险，合理配置监管资源，提高监管效率，依据《中华人民共和国保险法》等法律法规和中国保监会有关规定，制定本办法。
Article 4: An insurance regulator shall, in accordance herewith, treat all of the establishments in its jurisdiction of an insurance company as a whole and subject the same to graded regulation.
Article 5: The graded regulation of establishments of insurance companies shall comply with the principle of risk orientation, and graded assessment shall be carried out, and regulatory measures taken, based on the companies' risk positions.
第二条 本办法所称保险公司，是指经中国保监会批准设立，并依法登记注册的商业保险公司。本办法所称保险公司分支机构，是指经中国保监会批准，保险公司依法设立的分公司、中心支公司、支公司、营业部、营销服务部等分支机构。
Part Two: Classification method
Article 6: An insurance regulator shall classify the establishments of insurance companies into four grades based on the companies' risk positions:
第三条 本办法所称分类监管，是指保监局根据客观信息，综合分析评估保险公司分支机构风险，依据评估结果将其归入特定监管类属，并采取针对性监管措施的行为。
(1) A-grade institution: means a company whose operations are compliant and no problems in terms of business development, internal controls, etc. are discovered;
(2) B-grade institution: means a company whose operations are relatively compliant and although there are certain problems in terms of its business development, internal controls, etc., they are not serious;
第四条 保监局应当依照本办法的规定，将某保险公司在其辖区内的所有分支机构作为一个整体，进行分类监管。
(3) C-grade institution: means a company that has relatively serious compliance problems in its operations or in whose business development, internal controls, etc. there are relatively large risks; and
(4) D-grade institution: means a company that has serious compliance problems in its business operations or in which there are major risks in at least one aspect such as its business development or internal controls.
第五条 保险公司分支机构分类监管应遵循风险导向原则，根据公司风险状况进行分类评价，采取监管措施。
Article 7: An insurance regulator shall classify the establishments of insurance companies in its jurisdiction based on the three types of monitoring indicators, namely business operation risk indicators, compliance risk indicators and internal control risk indicators, and the information it has learnt in the course of routine oversight. Each type of monitoring indicator comprises specific indicators (for details see the Attachment).
Article 8: An insurance regulator shall determine the assessment grade based on the scores obtained by the establishments of insurance companies on the three types of monitoring indicators and classify the establishments as A, B, C or D based on risk from low to high.
第二章 分类方法
The maximum assessed mark shall be 100. An establishment scoring a mark of at least 80 shall be classed as an A-grade institution, one scoring a mark of between 65 (inclusive) and 80 shall be classed as a B-grade institution, one scoring a mark of between 50 (inclusive) and 65 shall be classed as a C-grade institution and one scoring a mark of less than 50 shall be classed as a D-grade institution.
Article 9: An insurance regulator may appropriately revise its grading assessment in reference to the information it has learnt in the course of routine oversight to determine the final grading.
第六条 保监局根据公司风险状况，将保险公司分支机构分为四类：
Part Three: Regulatory measures
Article 10: An insurance regulator shall take different regulatory policies and measures toward the establishments of insurance companies based on implementation of the CIRC's Graded Regulatory measures, and while taking into account the regulatory measures toward insurance companies issued by the CIRC and the risk positions of the establishments in its jurisdiction.
（一）A类机构，指经营合规，业务发展、内部控制等方面未发现问题的公司；
Article 11: An insurance regulator will not take any special regulatory measures against an A-grade institution.
Article 12: An insurance regulator shall take one or more of the following regulatory measures against a B-grade institution:
（二）B类机构，指经营较合规，业务发展、内部控制等方面虽有问题，但不严重的公司；
(1) giving a risk warning;
(2) giving a verbal regulatory warning;
（三）C类机构，指经营存在较严重违规情形，或业务发展、内部控制等方面存在较大风险的公司；
(3) ordering it to rectify the matter within a specified period of time; and/or
(4) conducting an onsite inspection in respect of the existing problem.
（四）D类机构，指业务经营存在严重违规情形，或业务发展、内部控制等至少一个方面存在严重风险的公司。
Article 13: In addition to taking the measures that are taken against B-grade institutions, an insurance regulator may take one or both of the following regulatory measures against a C-grade institution:
(1) conducting a comprehensive investigation; and/or
第七条 保监局应当依据业务经营风险指标、合规风险指标、内控风险指标三类监测指标和日常监管中掌握的信息对辖区内保险公司分支机构进行分类。每类监测指标由具体指标组成（详见附件）。
(2) recommending that the head office replace the relevant senior management personnel of the establishment.
Article 14: In addition to taking the measures that are taken against B-grade and C-grade institutions, an insurance regulator may, depending on the facts of the non-compliance by the establishment, take one or more of the following regulatory measures against a D-grade institution in accordance with relevant provisions:
第八条 保监局按照保险公司分支机构三类监测指标的得分确定评价类别，将分支机构按风险由低到高评为A、B、C、D四类。
(1) suspending approval of the establishment of establishments;
(2) with respect to the seriously non-compliant business, ordering that the same be rectified or that the handling of such business be suspended; and/or
评价得分满分为100分。得分高于80分（含80分）评为A类机构，得分为65至80分（含65分）评为B类机构，得分为50至65分（含50分）评为C类机构，得分在50分以下评为D类机构。
(3) taking other regulatory measures that the insurance regulator deems necessary.
Part Four: Arrangement of implementation
第九条 各保监局可以参考日常监管掌握的信息，对分类评价进行适当调整，确定最终评级类别。
Article 15: The working procedure for the graded regulation of the establishments of insurance companies is set forth below:
(1) submission of information: the establishments of insurance companies regularly submit graded regulation-related information and data to the CIRC and the insurance regulator;
第三章 监管措施
(2) generation of monitoring indicators: the insurance regulator reviews the information submitted by the establishments of insurance companies in its jurisdiction and, while taking into consideration the information it has learnt in the course of routine oversight, calculates the score on the monitoring indicators;
(3) grading assessment: the insurance regulator conducts a grading assessment of the establishments of insurance companies in its jurisdiction based on the monitoring indicators and the information it has obtained or derived in the course of routine oversight and submits the assessment results to the CIRC; the CIRC conducts an overall grading assessment of insurance companies based on the assessment results submitted by the insurance regulator and other relevant data and information; and
第十条 保监局应当在执行中国保监会分类监管措施的基础上，结合中国保监会对保险公司下达的监管措施和辖区分支机构风险状况，对保险公司分支机构采取不同的监管政策和监管措施。
(4) implementation of graded regulation: the insurance regulator implements the CIRC's regulatory measures against insurance companies based on the CIRC's uniform arrangement; the insurance regulator takes graded regulatory measures against the establishments of insurance companies in its jurisdiction.
Article 16: An insurance regulator shall conduct an assessment and grading of establishments of insurance companies, and formulate the regulatory measures once each year.
第十一条 对A类机构，保监局不采取特别的监管措施。
If a material change in the business position or financial position of an establishment of an insurance company occurs, the insurance regulator may revise the company's classification and the corresponding regulatory measures at any time.
Article 17: By March 31 of each year, an insurance regulator shall conduct a grading assessment of the establishments of insurance companies in its jurisdiction based on the data of the preceding year and submit a graded regulation report to the CIRC. A graded regulation report shall contain the following:
第十二条 对B类机构，保监局可采取以下一项或多项监管措施：
(1) the results of the grading assessment;
(2) the implementation of the regulatory measures taken the preceding year and the regulatory measures to be taken next; and
（一）风险提示；
(3) other important matters that need to be explained.
Article 18: An insurance regulator shall periodically circulate to the establishments of insurance companies in its jurisdiction and their head offices the grade into which the company is put and the regulatory measures taken against it.
（二）监管谈话；
Part Five: Supplementary provisions
Article 19: The CIRC is in charge of interpreting these Measures.
（三）责令限期改正；
Article 20: These Measures shall be effective as of the date of issuance.
Attachment:
（四）针对所存在的问题进行现场检查。
Monitoring Indicators for Graded Regulation of the Establishments of Insurance Companies
| No. | Type of indicator | Specific indicators for property insurance companies | Specific indicators for life insurance companies |
| 1 | Business operation risk indicators | (1) Premiums receivable rate (2) Claim settlement rate (3) Complaint rate (4) Comprehensive cost rate (5) Comprehensive settlement rate (6) Net cash flow generated by business activities | (1) Surrender rate (2) Premiums continuance rate (3) 13-month retention rate for sales personnel (4) Complaint rate (5) Commission and service charge rate (6) Business and management fee rate |
| 2 | Compliance risk indicators | Compliance situation | Compliance situation |
| 3 | Internal control risk indicators | Details of internal controls | Details of internal controls |
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