China Insurance Regulatory Commission, Circular on Regulating Bank Deposits of Insurance Capital

Issued: February 28 2014

Applicability: The Circular also applies to the application of insurance capital by insurance group (holding) companies and the management of insurance capital entrusted to insurance asset management companies and other professional institutions. Matters relating to deposits of capital guarantee funds shall be handled in accordance with the Measures for the Administration of the Capital Guarantee Funds of Insurance Companies (Article 8).

Main contents: An insurance company is required to manage bank deposits other than the current deposits required to maintain its day-to-day operations in investment accounts (Article 1). The deposit bank is required to satisfy the conditions set forth in Article 7 of the Tentative Measures for the Administration of the Application of Insurance Capital and have a long-term credit rating of at least A or the equivalent during the previous year (Article 2). The insurance company is required to select a commercial bank or other professional financial institution with insurance capital custody qualifications to effect third party custody (Article 3).