China Insurance Regulatory Commission, Basic Guidelines for Internal Controls of Insurance Companies
中国银行业监督管理委员会保险公司内部控制基本准则
September 04, 2010 | BY
clpstaff &clp articles &Independent third parties may be appointed to evaluate internal controls of insurance companies.
Promulgated: August 10 2010
Effective: January 1 2011
Applicability: The term “internal control” refers to the mechanisms and processes whereby an insurance company's bodies and personnel at all levels, in accordance with their respective duties, adopt appropriate measures to reasonably safeguard against and effectively control various types of risks arising from business operations and to prevent the company's operations from deviating from its development strategies and business goals (Article 2).
These Guidelines apply to insurance companies established within the PRC. The internal controls of insurance group companies, reinsurance companies and insurance asset management companies shall, mutatis mutandis, be governed by these Guidelines (Article 59).
Where the existing provisions of the China Insurance Regulatory Commission (CIRC) are inconsistent with these Guidelines, these Guidelines shall prevail (Article 60).
Main contents: The Guidelines cover the internal control activities of insurance companies, including the internal control of sales, operation, fundamental management, and use of funds (Part Two). The CIRC may, according to regulatory requirements, conduct inspection on the internal controls of insurance companies. The methods of inspection include spot checking of certain internal control sections or business units, and comprehensive evaluation of the organisation. The CIRC may appoint an independent intermediary to conduct a comprehensive evaluation, and the insurance company shall cooperate and bear the corresponding fees (Article 57).
Related legislation: PRC Insurance Law, Jun 30 1995, CLP 1995 No.8 p.16; and Basic Guidelines for Enterprise Internal Controls
Repealed legislation: Guiding Principles for the Establishment of Internal Control Systems in Insurance Companies, Aug 5 1999
clp reference:3910/10.08.10promulgated:2010-08-10effective:2011-01-01This premium content is reserved for
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