CIRC Sets Higher Threshold for Foreign Insurance Institution

The China Insurance Regulatory Commission on March 31 released administrative rules on foreign insurance institutions’ representative offices in China to solicit public opinions, which set higher thresholds for foreign insurance institutions. The rules propose foreign insurance groups and foreign insurance companies should meet some requirements before applying to open China representative offices, like over USD 2 billion total assets at the end of previous year, good corporate governance of the applicants and connected companies, sound internal risk control system, steady business development and stable economic and political situation as well as strict financial supervisory system in the applicant’s location country or region. The rules define insurance intermediaries as insurance brokerage firms, insurance agencies and insurance survey and loss adjuster companies incorporated outside China. Foreign insurance institutions refer to insurance group companies, insurance companies, insurance intermediaries, insurance associations and other insurance organization incorporated outside China. The administrative rules exclude foreign reinsurance companies from the alleged insurance institutions.