Insurance Law

Issued: January 22 2013Main contents: The CIRC has proposed to revise Article 5 to allow insurance group (holding) companies to offer subordinated debt…

Establishment of bond investment plans by insurance companies now only requires registration.

During the last two years, the China Insurance Regulatory Commission has issued several new policies for insurance proceeds investment, but the distribution is unclear at this stage, leaving insurance companies seeking guidance

Investment of insurance proceeds allowed in stock index futures trading.

Participation in financial derivatives trading by insurance proceeds is for hedging purpose only.

Insurance capital may now invest in 25 developed markets and 20 emerging markets. The amount allowed to be invested in emerging markets has also increased from not exceeding 5% of last year end's total assets to 10%. Investment instruments allowed include money market instruments, fixed-return instruments, equity, immovable property, investment funds and REITs.

Housing and travel allowances of foreign expatriates of insurance companies may be excluded from their bonus limits.

For the first time insurance proceeds are allowed to be invested in wealth management products of commercial banks, credit asset-backed securities of banking financial institutions and pooled fund trust plans of trust companies.

Insurance asset management companies may be entrusted to manage the funds of pension fund, enterprise annuity and housing fund.