Public Comments Sought for the Interim Measures for the Regulation of Domestic Systemically Important Insurers (Second Draft for Comment)
Public Comments Sought for the Interim Measures for the Regulation of Domestic Systemically Important Insurers (Second Draft for Comment)
Public Comments Sought for the Interim Measures for the Regulation of Domestic Systemically Important Insurers (Second Draft for Comment)
August 31, 2016
The Interim Measures for the Regulation of Domestic Systemically Important Insurers (Draft for Comment) was promulgated in March 2016 to solicit for public comments. Recently, based on feedback from parties concerned and in response to new trends in international regulation, the first draft was revised to lay down the Interim Measures for the Regulation of Domestic Systemically Important Insurers (Second Draft for Comment). We hereby solicit public comments from the society for the second time. Please give feedback through the following ways:
1. Please offer comments by sending email to: chen_fan@circ.gov.cn;
2. Please send the correspondence with the "Comments on the Interim Measures for the Regulation of Domestic Systemically Important Insurers" indicating on the envelope to the postal address: The Reform Coordination Division of the Development and Reform Department of China Insurance Regulatory Commission (The Regulatory Division of the People's Insurance Company (Group) of China Limited) (Postal Code: 100033), 15 Financial Street, Xicheng District, Beijing; or
3. Please offer comments by sending fax to: 86 (10) - 66288132
The deadline for making comments shall be September 7, 2016.
Interim Measures for the Regulation of Domestic Systemically Important Insurers (Second Draft for Comment)
Chapter I General Provisions
Article 1 (Policy Objectives) These Measures are hereby promulgated with a view to strengthening the regulation of Domestic Systemically Important Insurers (the "D-SIIs") and preserving the security and stability of the insurance market in accordance with the Insurance Law of the People's Republic of China and by reference to the regulatory requirements for global systemically important insurers imposed by the Financial Stability Board and the International Association of Insurance Supervisors.
These Measures constitute an important part of the regulatory framework of the People's Insurance Company (Group) of China Limited.
Article 2 (Scope of Application) These Measures apply to the D-SIIs accredited by the China Insurance Regulatory Commission.
Article 3 (Definitions) For the purposes of these Measures, the D-SIIs refer to insurance companies that may pose systemic risks as a result of difficulties in continuing operation in case of incidents with significant risks, which may be incurred by such factors as business scale, corporate governance, external relevance, the liquidity of assets, immutability, etc.
Insurance companies refer to insurance group (holding) companies, insurance companies and reinsurance companies incorporated and registered with the approval from the China Insurance Regulatory Commission and registered according to the law.
Systemic risks refer to risks that are incurred by internal factors of single or several insurance agencies, or uncertainties of the insurance market and outside of the insurance industry, which lead to significant risk incidents in insurance companies and make it difficult for them to continue operations, thus further triggering a dramatic fluctuation or crisis in the insurance system, or even spreading the negative effects to the financial system and the real economy and bringing about significant adverse effects.
Article 4 (Regulatory Duties) The China Insurance Regulatory Commission shall be empowered to regulate the D-SIIs by the State Council pursuant to relevant laws and administrative regulations.
The China Insurance Regulatory Commission shall develop D-SIIs assessment methods, identify the D-SIIs name list and impose additional regulatory requirements for the D-SIIs on the basis of existing regulatory rules and in the light of the development of insurance business.
Chapter II Elements for Regulation
Section 1 Corporate Governance
Article 5 (Objectives and Principles) On the basis of the existing corporate governance regulatory requirements, the D-SIIs shall establish an effective governance framework to cover all the D-SIIs. Additionally, the D-SIIs shall strengthen self-management, carry out more unified, effective and transparent management, and reduce systemic risk incurred by improper corporate governance.
Article 6 (Organizational Structure) The D-SIIs shall clearly define the responsibility and authority of the board of directors, the board of supervisors and senior management executives, and clarify the functions of the bodies at all levels and functional departments with a view to establishing an effective decision-making, restriction and execution mechanism.
Article 7 (Board of Directors) The board of directors of the D-SIIs shall perform the following duties:
1.
......
August 31, 2016
The Interim Measures for the Regulation of Domestic Systemically Important Insurers (Draft for Comment) was promulgated in March 2016 to solicit for public comments. Recently, based on feedback from parties concerned and in response to new trends in international regulation, the first draft was revised to lay down the Interim Measures for the Regulation of Domestic Systemically Important Insurers (Second Draft for Comment). We hereby solicit public comments from the society for the second time. Please give feedback through the following ways:
1. Please offer comments by sending email to: chen_fan@circ.gov.cn;
2. Please send the correspondence with the "Comments on the Interim Measures for the Regulation of Domestic Systemically Important Insurers" indicating on the envelope to the postal address: The Reform Coordination Division of the Development and Reform Department of China Insurance Regulatory Commission (The Regulatory Division of the People's Insurance Company (Group) of China Limited) (Postal Code: 100033), 15 Financial Street, Xicheng District, Beijing; or
3. Please offer comments by sending fax to: 86 (10) - 66288132
The deadline for making comments shall be September 7, 2016.
Interim Measures for the Regulation of Domestic Systemically Important Insurers (Second Draft for Comment)
Chapter I General Provisions
Article 1 (Policy Objectives) These Measures are hereby promulgated with a view to strengthening the regulation of Domestic Systemically Important Insurers (the "D-SIIs") and preserving the security and stability of the insurance market in accordance with the Insurance Law of the People's Republic of China and by reference to the regulatory requirements for global systemically important insurers imposed by the Financial Stability Board and the International Association of Insurance Supervisors.
These Measures constitute an important part of the regulatory framework of the People's Insurance Company (Group) of China Limited.
Article 2 (Scope of Application) These Measures apply to the D-SIIs accredited by the China Insurance Regulatory Commission.
Article 3 (Definitions) For the purposes of these Measures, the D-SIIs refer to insurance companies that may pose systemic risks as a result of difficulties in continuing operation in case of incidents with significant risks, which may be incurred by such factors as business scale, corporate governance, external relevance, the liquidity of assets, immutability, etc.
Insurance companies refer to insurance group (holding) companies, insurance companies and reinsurance companies incorporated and registered with the approval from the China Insurance Regulatory Commission and registered according to the law.
Systemic risks refer to risks that are incurred by internal factors of single or several insurance agencies, or uncertainties of the insurance market and outside of the insurance industry, which lead to significant risk incidents in insurance companies and make it difficult for them to continue operations, thus further triggering a dramatic fluctuation or crisis in the insurance system, or even spreading the negative effects to the financial system and the real economy and bringing about significant adverse effects.
Article 4 (Regulatory Duties) The China Insurance Regulatory Commission shall be empowered to regulate the D-SIIs by the State Council pursuant to relevant laws and administrative regulations.
The China Insurance Regulatory Commission shall develop D-SIIs assessment methods, identify the D-SIIs name list and impose additional regulatory requirements for the D-SIIs on the basis of existing regulatory rules and in the light of the development of insurance business.
Chapter II Elements for Regulation
Section 1 Corporate Governance
Article 5 (Objectives and Principles) On the basis of the existing corporate governance regulatory requirements, the D-SIIs shall establish an effective governance framework to cover all the D-SIIs. Additionally, the D-SIIs shall strengthen self-management, carry out more unified, effective and transparent management, and reduce systemic risk incurred by improper corporate governance.
Article 6 (Organizational Structure) The D-SIIs shall clearly define the responsibility and authority of the board of directors, the board of supervisors and senior management executives, and clarify the functions of the bodies at all levels and functional departments with a view to establishing an effective decision-making, restriction and execution mechanism.
Article 7 (Board of Directors) The board of directors of the D-SIIs shall perform the following duties:
1.
......