China Insurance Regulatory Commission, Guidelines for the Administration of Development Plans of Insurance Companies

Applicability: “Development plans” refers to the development targets, business strategies and safeguard measures formulated by insurance companies based on actual circumstances and future trends, and are the basic outline for business operations and development of the company during the planning period. Insurance companies shall, according to their own circumstances, objectively determine the development planning period, which is three to five years in general (Article 2).

The Guidelines apply to insurance companies and insurance group (holding) companies. Matters relating to insurance asset management companies and other insurance institutions approved by the CIRC shall, mutatis mutandis, be handled in accordance with these Guidelines (Article 3).

Main contents: The CIRC requires insurance companies to formulate development plans detailing their strategic objectives, business development, company development, solvency management, capital management, risk management, basic management and security measures (Article 7).

Insurance companies shall, before the end of April each year, submit to the CIRC a comprehensive evaluation report on the implementation of the development plan of the previous year, including the differences between the planned targets and the achievement of key indices such as premiums revenue, total assets, profit rate, solvency adequacy ratio and establishment of branch organisations (Article 35).

Related legislation: PRC Insurance Law, Feb 28 2009, CLP 2009 No.3 p.35; and Provisions for the Administration of Insurance Companies, September 25 2009, CLP 2009 No.9 p.44