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

Issued: March 15 2013

Effective: April 1 2013

Applicability: The term “establishment of an insurance company” means a provincial-level branch, branch, central sub-branch, sub-branch, business office and sales service office established by an insurance company in accordance with the law (Article 3).

Where existing provisions of the China Insurance Regulatory Commission are inconsistent with these Measures, these Measures shall prevail (Article 35).

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).