Administrative Measures for the Establishment of Overseas Insurance Institutions by Insurance Companies

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2006-08-07

Order No. 7 of 2006 of the China Insurance Regulatory Commission

The "Administrative Measures for the Establishment of Overseas Insurance Institutions by Insurance Companies" was issued in 2006 It was reviewed and approved at the Chairman's Office Meeting of the China Insurance Regulatory Commission on March 13, and is hereby announced and will come into effect on September 1, 2006.

Chairman Wu Dingfu

July 31, 2006

Administrative Measures for the Establishment of Overseas Insurance Institutions by Insurance Companies

Chapter 1 General Provisions

Article 1 In order to strengthen the management of insurance companies’ activities in establishing overseas insurance institutions, prevent risks, and protect the interests of the insured, in accordance with the Insurance Law of the People’s Republic of China (hereinafter) (referred to as the "Insurance Law") and other laws and administrative regulations, these Measures are formulated.

Article 2: Insurance companies as mentioned in these Measures refer to commercial insurance companies established with the approval of the China Insurance Regulatory Commission (hereinafter referred to as the China Insurance Regulatory Commission) and registered in accordance with the law.

Article 3 The term “overseas insurance institutions” as mentioned in these Measures refers to overseas branches of insurance companies, overseas insurance companies and insurance intermediaries.

The term “insurance intermediaries” as mentioned in these Measures refers to insurance agencies, insurance brokers and insurance adjusters.

Article 4 The establishment of overseas insurance institutions as mentioned in these Measures refers to the following behaviors of insurance companies:

(1) Establishing overseas branches, overseas insurance companies and insurance intermediaries ;

(2) Acquisition of overseas insurance companies and insurance intermediaries.

Article 5 The term “acquisition” as mentioned in these Measures refers to the transfer of the equity of an overseas insurance company or insurance intermediary institution by an insurance company, and the equity held by it reaches 20% or more of the total voting capital of the institution, or even though Less than 20% but has actual control, joint control or significant influence on the institution.

These Measures shall apply to insurance companies that acquire listed overseas insurance companies and insurance intermediaries. If the China Insurance Regulatory Commission has other provisions, such provisions shall prevail.

Article 6 When an insurance company establishes an overseas insurance institution, it shall abide by China's laws and administrative regulations on insurance and foreign exchange management and the relevant provisions of the China Insurance Regulatory Commission, and comply with relevant overseas laws and regulations.

Insurance companies that acquire overseas insurance companies and insurance intermediaries must implement the current regulations on insurance foreign exchange funds.

Article 7 The China Insurance Regulatory Commission shall supervise and manage the activities of insurance companies establishing overseas insurance institutions in accordance with the law.

Article 8 These Measures shall apply to insurance companies that establish non-commercial institutions such as representative offices, liaison offices or offices overseas.

Chapter 2 Establishment Approval

Article 9 An insurance company that establishes an overseas insurance institution shall meet the following conditions:

(1) It has been in business for more than 2 years ;

(2) Total assets at the end of the previous year shall not be less than 5 billion yuan;

(3) Foreign exchange funds at the end of the previous year shall not be less than 15 million U.S. dollars or its equivalent freely convertible Currency;

(4) The solvency limit complies with the relevant regulations of the China Insurance Regulatory Commission;

(5) The internal control system and risk management system comply with the relevant regulations of the China Insurance Regulatory Commission;

(6) There is no record of major penalties in the past two years;

(7) The country or region where the overseas insurance institution is to be established has a sound financial regulatory system and maintains effective supervision with the Chinese insurance regulatory agencies Cooperative relationship;

(8) Other conditions specified by the China Insurance Regulatory Commission.

Article 10 When an insurance company applies to establish overseas branches, overseas insurance companies or insurance intermediaries, it shall submit the following materials to the China Insurance Regulatory Commission:

(1) Application form;

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(2) A copy of the State Administration of Foreign Exchange’s decision approving the source of foreign exchange funds;

(3) The company’s financial statements and foreign currency balance sheet audited by an accounting firm in the previous year;< /p>

(4) Solvency status report audited by the accounting firm for the previous year;

(5) Internal control system and risk management system;

(6 ) Basic information on the proposed overseas insurance institution, including name, address, articles of association, registered capital or working capital, equity structure and capital contribution, business scope, resume of the person in charge of the establishment and a copy of the identity document;

< p>(7) The feasibility study report, market analysis report and preparation plan of the proposed overseas insurance institution;

(8) The law of the place where the proposed overseas insurance institution is located requires the insurance company to establish it If an insurance institution assumes joint liability, it shall submit relevant explanatory materials;

(9) Other materials specified by the China Insurance Regulatory Commission.

If an insurance company or insurance intermediary institution established overseas by an insurance company has other sponsors, it shall also submit the name of the other sponsors, a copy of the share subscription agreement, a business license, and the accounting firm’s accounting services for the previous year. Audited balance sheet.

Article 11 When an insurance company applies to acquire overseas insurance companies and insurance intermediaries, it shall submit the following materials to the China Insurance Regulatory Commission:

(1) Application form;

< p>(2) A copy of the State Administration of Foreign Exchange’s decision approving the source of foreign exchange funds;

(3) The company’s financial statements and foreign currency balance sheet audited by an accounting firm in the previous year;

(4) Solvency status report audited by the accounting firm for the previous year and the most recent quarter and its explanation;

(5) Internal management system and risk control system;

(6) A description of the basic information of the overseas insurance institution to be acquired, including its name, address, articles of association, registered capital or working capital, business scope, and description of the person in charge;

(7) A description of the overseas insurance institution to be acquired; The company's financial statements of the acquired overseas insurance institution that were audited by the accounting firm in the previous year;

(8) Feasibility study report, market analysis report, and acquisition plan for acquiring the overseas insurance institution;

(9) Other materials specified by the China Insurance Regulatory Commission.

If the overseas insurance institution to be acquired is an insurance company, it shall also submit its solvency status report and explanation audited by an accounting firm for the previous year and the most recent quarter.

Article 12 When an insurance company establishes a representative agency, liaison agency or office and other non-business institutions overseas, it shall meet the following conditions:

(1) Have legal foreign exchange Source of funds;

(2) The internal control system and risk management system comply with the relevant regulations of the China Insurance Regulatory Commission;

(3) There is no record of major penalties in the last two years;

(4) Other conditions specified by the China Insurance Regulatory Commission.

Article 13 When an insurance company applies to establish a representative office, liaison agency or office or other non-commercial institutions overseas, it shall submit the following documents to the China Insurance Regulatory Commission:

(1) Application;

(2) A basic description of the proposed overseas representative office, liaison agency or office and other non-commercial institutions, including name, address, operating budget, resume of the person in charge and identification materials Copy;

(3) Other materials specified by the China Insurance Regulatory Commission.

Article 14 The China Insurance Regulatory Commission shall review applications for the establishment of overseas insurance institutions or overseas representative agencies, liaison agencies, offices and other non-commercial institutions in accordance with the law, and shall review the application within 20 days from the date of acceptance of the application. Make a decision to approve or disapprove. If it is decided not to approve, the applicant shall be notified in writing and the reasons shall be explained.

Article 15 An insurance company shall, within 20 days after the overseas insurance institution obtains a license or the acquisition transaction is completed, report the following circumstances of the overseas insurance institution to the China Insurance Regulatory Commission in writing:

(1) Copy of license;

(2) Name and address of the institution;

(3) Articles of Association;

(4) Organizational form of the institution , business scope, registered capital or working capital, the amount and proportion of capital contributions from other shareholders or partners;

(5) Name and contact information of the person in charge of the organization;

(6) Other materials specified by the China Insurance Regulatory Commission.

Article 16 An insurance company shall, within 20 days after the establishment of an overseas representative office, liaison agency or office or other non-commercial institution, transfer the information of the overseas representative office, liaison agency or office or other non-commercial institution to the Report the following circumstances in writing to the China Insurance Regulatory Commission:

(1) Copy of registration certificate;

(2) Name and address;

(3) Name of person in charge and contact information;

(4) Other materials specified by the China Insurance Regulatory Commission.

Chapter 3 Management of Overseas Insurance Institutions

Article 17 Insurance companies shall conduct effective risk management of the overseas insurance institutions they establish, and urge such institutions to comply with the regulations in their respective jurisdictions. Establish and improve the risk management system in accordance with the relevant provisions of national laws and regulatory authorities.

Article 18 Insurance companies shall strictly control the overseas insurance institutions they establish to provide external guarantees.

If an overseas branch of an insurance company really needs to provide external guarantees, it must obtain a credit certificate from the guaranteed party and sign a legally binding counter-guarantee agreement. If a counter-guarantee agreement is provided in the form of property mortgage or pledge, the amount of the guarantee shall not exceed 60% of the revalued value of the mortgaged or pledged property.

Article 19: Branches established overseas by insurance companies are not allowed to make external loans except for policy pledge loans.

Article 20 An insurance company shall establish a performance appraisal system, an interim audit system and a departure audit system for the chairman of the board and senior managers assigned to the overseas insurance institutions it establishes.

Article 21 After the liquidation of an overseas insurance institution established by an insurance company is completed, a liquidation report issued by the liquidation agency and verified by a local certified public accountant shall be submitted to the China Insurance Regulatory Commission.

Chapter 4 Supervision and Inspection

Article 22 An insurance company shall separately disclose its establishment in financial reports and solvency reports in accordance with the Chinese accounting system and the provisions of the China Insurance Regulatory Commission. The operating results, financial status and solvency status of overseas insurance institutions.

Article 23: If an overseas insurance institution established by an insurance company prepares a solvency report in accordance with the requirements of the local insurance regulatory agency, the insurance company shall send a copy to the China Insurance Regulatory Commission.

Article 24 An insurance company shall submit the financial statements of the overseas insurance institution for the previous year to the China Insurance Regulatory Commission within 5 months after the end of each fiscal year of the overseas insurance institution it establishes. .

Article 25 An insurance company shall submit the annual work report of its overseas representative offices, liaison offices or offices and other non-business institutions to the China Insurance Regulatory Commission before the end of January each year.

The annual work report of non-commercial institutions such as overseas representative offices, liaison agencies or offices shall include the main work of the institution and changes in the organization.

Article 26 If the following events occur in an overseas insurance institution established by an insurance company, the insurance company shall report in writing to the China Insurance Regulatory Commission within 20 days from the date of the event:

(1) ) investing in or establishing a company;

(2) division, merger, dissolution, cancellation or bankruptcy;

(3) change of institution name or place of registration;

(4) Changes in the chairman of the board and senior managers;

(5) Significant changes in registered capital and shareholder structure;

(6) Adjustment of business scope;

(7) Major operating or financial problems occur;

(8) Involving major litigation and subject to major penalties;

(9) Local insurance supervision The department issues a regulatory report or inspection report;

(10) Other matters deemed necessary to report by the China Insurance Regulatory Commission.

Article 27 If an insurance company transfers the equity of its overseas insurance institution, it must submit the application to the China Insurance Regulatory Commission for approval.

Article 28 If an insurance company commits any of the following acts on its overseas insurance institutions, it shall report to the China Insurance Regulatory Commission for approval and submit materials in accordance with Article 11 of these Measures:

(1) Increase the shareholding of overseas insurance institutions;

(2) Increase the capital or working capital of overseas insurance institutions.

Article 29 Insurance companies shall establish relevant systems for controlling and managing related-party transactions. If any major related transaction occurs between an insurance company and its overseas insurance companies and insurance intermediaries, it shall report to the China Insurance Regulatory Commission within 15 days after the completion of the transaction.

The major related transactions specified in the preceding paragraph refer to the following transaction activities between insurance companies and their overseas insurance companies and insurance intermediaries:

(1) Reinsurance ceding or ceding Investment business;

(2) Asset management, guarantee and agency business;

(3) Purchase and sale of fixed assets or transfer of claims and debts;

(4) Major amount of loans;

(5) Other major transaction activities.

Article 30 All materials of overseas insurance institutions submitted by insurance companies to the China Insurance Regulatory Commission shall be complete, true and accurate.

Chapter 5 Legal Responsibilities

Article 31 If an overseas insurance institution is established without the approval of the China Insurance Regulatory Commission, the China Insurance Regulatory Commission shall order it to make corrections and impose a fine of more than 50,000 yuan. A fine of not more than 300,000 yuan may be imposed; if the circumstances are serious, the business scope may be restricted, ordered to stop accepting new business, or the insurance business license may be revoked.

Anyone who establishes overseas representative offices, liaison agencies, offices and other non-commercial institutions without the approval of the China Insurance Regulatory Commission will be ordered to make corrections by the China Insurance Regulatory Commission and fined not more than 30,000 yuan.

Article 32: Anyone who fails to submit relevant reports, statements, documents and information in accordance with the provisions of these Measures shall be ordered to make corrections by the China Insurance Regulatory Commission. If corrections are not made within the time limit, a fine of not less than RMB 10,000 but not more than RMB 100,000 shall be imposed. fine.

Article 33 Anyone who provides false reports, statements, documents and information shall be ordered to make corrections by the China Insurance Regulatory Commission and shall be fined not less than RMB 100,000 but not more than RMB 500,000; if the circumstances are serious, the scope of business may be restricted. , be ordered to stop accepting new business or revoke the insurance business license.

Chapter 6 Supplementary Provisions

Article 34 Insurance group companies and insurance holding companies shall establish overseas insurance institutions and overseas representative agencies, liaison agencies, offices and other non-commercial agencies Yes, this method applies. If the China Insurance Regulatory Commission has other provisions, such provisions shall prevail.

Article 35 These Measures shall apply to insurance companies that establish insurance institutions and overseas representative agencies, liaison agencies, offices and other non-commercial institutions in Hong Kong, Macao and Taiwan.

Article 36 All reports, statements, documents and materials submitted by insurance companies to the China Insurance Regulatory Commission in accordance with these Measures shall be in Chinese. If the original document is in a foreign language, a Chinese translation should be attached. If there is any inconsistency between the Chinese and foreign language expressions, the Chinese expression shall prevail.

Article 37 The “day” referred to in these Measures refers to working days, excluding holidays.

Article 38 The China Insurance Regulatory Commission is responsible for the interpretation of these Measures.

Article 39 These Measures shall come into effect on September 1, 2006.

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