China Insurance Regulatory Commission, Circular on Issues Relevant to the Engagement in Reinsurance Transactions of Foreign-funded Insurance Companies with Their Affiliated Enterprises

中国保险监督管理委员会关于外资保险公司与其关联企业从事再保险交易有关问题的通知

May 13, 2014 | BY

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Reinsurance transactions between foreign-funded insurance companies and their affiliates require approval.

Clp Reference: 3910/14.03.05 Promulgated: 2014-03-05 Effective: 2014-03-05

Issued: March 5 2014

Effective: as of date of issuance

Applicability: The Circular also applies to retrocession between foreign-funded reinsurance companies and their affiliated enterprises (Article 7).

Main contents: To engage in reinsurance ceding or assuming transactions with its affiliated enterprise, a foreign-funded insurance company will need to secure approval from the China Insurance Regulatory Commission (Article 1). Also, the affiliated enterprise is required to achieve a net profit after the most recent three financial years and a most recent financial rating of at least A- or A3 (Article 3).

Related legislation: PRC Regulations for the Administration of Foreign-funded Insurance Companies (Revised), May 30 2013, CLP 2013 No.4 online; and Provisions for the Administration of the Reinsurance Business, May 21 2010, CLP 2010 No.7 online

Repealed legislation: Circular on the Issuance of the《Implementing Rules for Examination and Approval Matters in Connection with Engagement in Reinsurance Transactions between Foreign-funded Insurance Companies and Their Affiliated Enterprises》, 2004; and Circular on Strengthening Information Disclosure Work in Connection with the Engagement in Reinsurance Transactions between Foreign-funded Insurance Companies and Their Affiliated Enterprises, 2006

clp reference:3910/14.03.05 issued:2014-03-05 effective:2014-03-05

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