China Insurance Regulatory Commission, Circular on Matters Relevant to the Reform of the Policy on Premium Rates for Standard Personal insurance
中国保险监督管理委员会关于普通型人身保险费率政策改革有关事项的通知
October 24, 2013 | BY
CLP Temp &clp articles &Maximum predetermined interest rate for standard personal insurance raised from 2.5% to 3.5%.
Issued: August 1 2013
Effective: August 5 2013
Applicability: The term “standard personal insurance” means personal insurance the premiums for which and the policy benefits of which have been determined at the time of the issuance of the policy (Article 1).
Main contents: The Circular revises the policy on premium rates for personal insurance:
(1) The predetermined interest rate for standard personal insurance shall be decided by the insurance company at its discretion based on the principle of prudence.
The predetermined interest rate for dividend paying personal insurance and the minimum guaranteed interest rate for universal personal insurance may not be higher than 2.5%.
(2) When pricing a personal insurance product, an insurance company shall comply with relevant actuarial provisions.
(3) The interest rate for assessment of the statutory liability reserve adopted by an insurance company may not be higher than the smaller of the predetermined policy interest rate and the statutory interest rate for assessment published by the China Insurance Regulatory Commission (Article 1).
The statutory interest rate for assessment of standard personal insurance policies issued on or after August 5 2013 shall be 3.5% (Article 2).
Related legislation: Measures for the Administration of the Insurance Clauses and Premium Rates of Personal Insurance Companies
Repealed legislation: Urgent Circular on the Revision of the Predetermined Interest Rates of Life Insurance Policies, Jun 10 1999
clp reference:3900/13.08.01 issued:2013-08-01 effective:2013-08-05
Issued: August 1 2013
Effective: August 5 2013
Applicability: The term “standard personal insurance” means personal insurance the premiums for which and the policy benefits of which have been determined at the time of the issuance of the policy (Article 1).
Main contents: The Circular revises the policy on premium rates for personal insurance:
(1) The predetermined interest rate for standard personal insurance shall be decided by the insurance company at its discretion based on the principle of prudence.
The predetermined interest rate for dividend paying personal insurance and the minimum guaranteed interest rate for universal personal insurance may not be higher than 2.5%.
(2) When pricing a personal insurance product, an insurance company shall comply with relevant actuarial provisions.
(3) The interest rate for assessment of the statutory liability reserve adopted by an insurance company may not be higher than the smaller of the predetermined policy interest rate and the statutory interest rate for assessment published by the China Insurance Regulatory Commission (Article 1).
The statutory interest rate for assessment of standard personal insurance policies issued on or after August 5 2013 shall be 3.5% (Article 2).
Related legislation: Measures for the Administration of the Insurance Clauses and Premium Rates of Personal Insurance Companies
Repealed legislation: Urgent Circular on the Revision of the Predetermined Interest Rates of Life Insurance Policies, Jun 10 1999
clp reference:3900/13.08.01 issued:2013-08-01 effective:2013-08-05
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