The China Banking and Insurance Regulatory Commission ("CBIRC") has recently drafted and issued the Provisions on the Regulation of Insurance Agents (Draft for Comment) (the "Draft for Comment") to seek public opinions by August 15, 2018.
The Draft for Comment expressly states that, to carry out insurance agency business within the territory of China, a corporate professional insurance agency or a legal-person institution engaged in sideline insurance agency business shall satisfy the criteria set out by the insurance regulator of the State Council and gain relevant business permits for the insurance agency business. In addition, the Draft for Comment notes that where a corporate professional insurance agency intends to carry out the said business beyond the province, autonomous region, municipality directly under the Central Government or city separately listed in the State plan of the place where its industry and commerce registration has been registered, its registered capital shall reach CNY50 million at least. Moreover, the Draft for Comment stipulates that, a sideline insurance business agency shall satisfy eight requirements, such as "having sources of insurance agency business in connection with its major business", if it attempts to carry out the insurance agency business. The insurance regulator of the State Council will subject sideline insurance business agencies to the category-based regulation, and prepare the access list and the catalog of types of insurance for the agency business purpose.