China Insurance Regulatory Commission, Circular on Matters Relevant to Strengthening the Administration of Assumption Reinsurance Business of Property Insurance Companies

中国保险监督管理委员会关于加强财产保险公司再保险分入业务管理有关事项的通知

November 10, 2014 | BY

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Property insurance companies required to establish a assumption reinsurance management system.

Clp Reference: 3910/14.09.16 Promulgated: 2014-09-16 Effective: 2015-01-01

Issued: September 16 2014

Effective: January 1 2015


Main contents: Property insurance companies are required to establish a complete assumption reinsurance management system, which:

(1) clearly identifies factors that need to be considered when determining the underwriting capability and specifies the maximum reserve amount or underwriting proportion for each risk unit of each product line;

(2) prudently assesses risks and establishes a risk control mechanism incorporating underwriting and claims reviews as well as a hierarchical authorisation system; and

(3) effectively spreads risks and formulates methods to spread risks of the assumption reinsurance business (Article 8).


Related legislation: Circular on Issues Relevant to Reinsurance Business Safety, Nov 15 2007; Provisions for the Administration of the Reinsurance Business, May 21 2010; and Establishment of Reinsurance Companies Provisions, Sep 17 2002

clp reference:3910/14.09.16 issued:2014-09-16 effective:2015-01-01

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