China Banking and Insurance Regulatory Commission, Implementing Rules for the PRC Regulations for the Administration of Foreign-Invested Insurance Companies

中国银行保险监督管理委员会中华人民共和国外资保险公司管理条例实施细则

January 09, 2020 | BY

Susan Mok

Entry conditions for foreign insurance companies are relaxed

Clp Reference: 3910/19.11.19 Promulgated: 2019-11-19
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Promulgated: November 19, 2019

Effective: as of date of promulgation

Main contents: The Rules relax the shareholding percentage of the foreign party to a foreign-invested personal insurance company, allowing it to hold up to 51% of the shares, and relax the entry conditions for foreign-invested insurance companies, dropping provisions on "a term of operation of 30 years", "representative office", etc.

With the objective of regulating the administration of the equity of foreign-invested insurance companies, the revised Rules require that a foreign-invested insurance company have at least one insurance company whose operations are regular to serve as a major shareholder and further clarify the responsibilities and obligations of major shareholders, so as to ensure the sustained healthy operation of foreign-invested insurance companies.

In terms of the unification of the systems for the regulation of Chinese and foreign investment, the Rules remove provisions on the administration of the branches of foreign-invested insurance companies, with the relevant provisions of the Measures for the Administration of the Market Access of (Sub-)Branches of Insurance Companies to apply to the establishment and administration of the (sub-)branches of foreign-invested insurance companies as for those of Chinese-invested insurance companies, and the Measures for the Administration of the Equity of Insurance Companies to also apply to the qualification conditions of Chinese applicants for the establishment of equity joint venture insurance companies.

clp reference:3910/19.11.19 promulgated:2019-11-19 effective:as of date of promulgation

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