China Insurance Regulatory Commission, Measures for the Administration of the Market Access of Establishments of Insurance Companies

Main contents: Where an insurance company that has registered capital of Rmb200 million applies to establish a provincial-level branch at a location other than its place of domicile, it shall increase its registered capital by at least Rmb20 million. If its registered capital is Rmb500 million or more, no further increase in the registered capital is necessary (Article 6). To set up an establishment outside the province where it is incorporated, an insurance company shall have commenced operations for at least two years, except for professional insurance companies (Article 7). Insurance companies that set up establishments shall conduct a market research and feasibility study, and formulate a scientific plan (Article 8).

To establish a provincial-level branch, an insurance company shall fulfil the following criteria:

(i) complying with its own development plans;

(ii) its solvency level reaches Adequacy Level Category II in the previous year and in the two consecutive quarters prior to the submission of application; and

(iii) it falls under graded regulation category B or above in the previous year and in the two consecutive quarters prior to the submission of application (Article 9).

Related legislation: PRC Insurance Law, February 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