China Insurance Regulatory Commission and China Banking Regulatory Commission, Guidelines for Regulation of the Bancassurance Business of Commercial Banks
中国保险监督管理委员会、中国银行业监督管理委员会商业银行代理保险业务监管指引
May 04, 2011 | BY
clpstaff &clp articles &Criteria should be met for selecting bancassurance cooperation counterparties.
Issued: March 7 2011
Effective: as of date of issuance
Applicability: For the purposes of these Guidelines, the term “bancassurance business of a commercial bank” means the business activity wherein a commercial bank, upon appointment by an insurance company, sells insurance products and provides related services on behalf of the insurance company to the extent authorised by the insurance company and for which it charges the insurance company an agency fee in accordance with the law (Article 2).
The insurance agency business of other banking financial institutions and postal companies shall be handled with reference to these Guidelines (Article 52).
Main contents: When selecting a cooperating commercial bank, an insurance company shall fully consider the commercial bank's capital adequacy ratio, risk management and control capabilities, place of business, soundness of its bancassurance business and financial management systems, penalties imposed by regulatory authorities in the last two years, etc (Article 6).
When selecting a cooperating insurance company, a commercial bank shall fully consider the insurance company's solvency, risk management and control capabilities, business and financial management information systems, penalties imposed by regulatory authorities in the last two years, etc (Article 7).
The Guidelines detail the operating rules for bancassurance business concerning the insurance products, agency fees, sales model, sales, financial accounting, contingency mechanism and intra-industry exchanges (Part Three).
Related legislation: PRC Insurance Law (Amended), Feb 28 2009, CLP 2009 No.3 p.35; PRC Law on Commercial Banks; and PRC Law on the Regulation of the Banking Sector
clp reference:3610/11.03.07prc reference:保监发 [2011] 10号promulgated:2011-03-07effective:2011-03-07This premium content is reserved for
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