China Insurance Regulatory Commission, Measures for the Regulation of insurance Intermediary Service Group Companies (Trial Implementation)

中国保险监督管理委员会保险中介服务集团公司监管办法 (试行)

November 08, 2011 | BY

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CIRC sets entry thresholds for insurance intermediary companies.

Clp Reference: 3910/11.09.22 Promulgated: 2011-09-22 Effective: 2011-09-22

Issued: September 22 2011
Effective: as of date of issuance
Interpreting authority: China Insurance Regulatory Commission (CIRC)

Applicability: For the purposes of these Measures, the term “insurance intermediary service group company” means a professional insurance intermediary firm approved by the CIRC and lawfully registered in the People's Republic of China that exercises control over, or jointly controls and has a material effect on, other member enterprises in the insurance intermediary service group.

Main contents: For the purposes of these Measures, the term “insurance intermediary service group” means a grouping of enterprise legal persons composed of an insurance intermediary service group company and the enterprises that it controls or jointly controls, or are materially affected by it; in addition to the insurance intermediary service group company, the enterprise grouping has two or more subsidiaries that are professional insurance intermediary firms and the insurance intermediary business is the enterprise grouping's principal business.

For the purposes of these Measures, the term “professional insurance intermediary firm” means an insurance agency, insurance brokerage or insurance assessment company (Article 2).

To establish an insurance intermediary service group company, the following conditions, among others, shall be satisfied:

(1) the investor(s) not having a record of a major violation of laws or regulations in the most recent three years;

(2) having at least five subsidiaries, not less than two of which are professional insurance intermediary firms, and the revenue from the insurance intermediary business accounting for at least 50% of the group's total business revenue; and

(3) having a minimum amount of registered capital of Rmb100 million (Article 5).

A shareholder of a professional insurance intermediary firm may, as a promoter, contribute its equity in the company and cash to, and establish, an insurance intermediary service group company, provided that the total capital contribution made in monetary form is not less than 30% of the insurance intermediary service group company's registered capital.

An enterprise that satisfies the conditions set forth in Article 5 hereof may be converted into an insurance intermediary service group company by changing its name (Article 6).

clp reference:3910/11.09.22promulgated:2011-09-22effective:2011-09-22

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