Administrative Regulations of the People's Republic of China on Foreign-invested Insurance Companies (Revised in 2019)
Administrative Regulations of the People's Republic of China on Foreign-invested Insurance Companies (Revised in 2019)
Administrative Regulations of the People's Republic of China on Foreign-invested Insurance Companies (Revised in 2019)
Order of the State Council of the People's Republic of China No. 720
September 30, 2019
(Promulgated on December 12, 2001 under the Order of the State Council of the People's Republic of China No. 336; and revised for the first time on May 30, 2013 under the Decision of the State Council on Revising the Administrative Regulation of the People's Republic of China on Foreign-invested Insurance Companies; revised for the second time on February 6, 2016 under the Decision of the State Council on Revising Certain Administrative Regulations; and revised for the third time on September 30, 2019 under the Decision of the State Council on Revising the Administrative Regulations of the People's Republic of China on Foreign-invested Insurance Companies and the Administrative Regulations of the People's Republic of China on Foreign-invested Banks)
Chapter I General Provisions
Article 1 These Regulations have been enacted for the purpose of satisfying the requirements of opening up to the outside world and economic development, strengthening and improving the supervision and administration of foreign invested insurance companies, and promoting the healthy development of the insurance industry.
Article 2 The term "foreign invested insurance company" as referred to in these Regulations shall mean any of the following types of insurance companies established and approved in accordance with relevant laws and administrative regulations to carry on business within the territory of the People's Republic of China:
1. an insurance company established by a foreign insurance company and a Chinese company or enterprise within the territory of China to carry on joint business operations (hereinafter referred to as a joint venture insurance company);
2. a foreign invested insurance company established and invested in by a foreign insurance company to carry on business operations within the territory of China (hereinafter referred to as a wholly foreign-owned insurance company); or
3. a branch office of a foreign insurance company established within the territory of China (hereinafter referred to as a foreign insurance company branch).
Article 3 Foreign invested insurance companies shall abide by the laws and regulations of China and shall not damage the social public interests of China.
The lawful business operations, rights and interests of foreign invested insurance companies shall be subject to the protection of Chinese law.
Article 4 The insurance regulatory authority under the State Council shall be responsible for the supervision and regulation of foreign invested insurance companies. The representative offices of the insurance regulatory authority under the State Council shall, on the basis of the authorization of the insurance regulatory authority under the State Council, be responsible for the day to day supervision and regulation of foreign invested insurance companies within their respective jurisdictions.
Chapter II Establishment and Registration
Article 5 The establishment of a foreign invested insurance company shall be subject to the approval of the insurance regulatory authority under the State Council.
The locations in which foreign invested insurance companies may be established shall be determined by the insurance regulatory authority under the State Council in accordance with the relevant provisions.
Article 6 For the establishment of a foreign invested insurance company that seeks to engage in personal insurance or property insurance, the form of establishment and proportion of foreign capital shall be determined by the insurance regulatory authority under the State Council in accordance with the relevant provisions.
Article 7 The minimum registered capital of a Sino-foreign joint venture insurance company or a wholly-owned insurance company shall be CNY200 million or the equivalent amount in freely exchangeable currency; the minimum registered capital shall be fully paid up capital.
The head office of a foreign invested insurance company shall provide its branch offices with a total of no less than CNY200 million or the equivalent amount in freely exchangeable currency as operating funds.
The insurance regulatory authority under the State Council may, according to the scope of business and business scale of the foreign invested insurance company concerned, increase the minimum amount of registered capital or operating funds of foreign invested insurance company required in the above two paragraphs.
Article 8 Any foreign insurance company that applies for permission to establish a foreign invested insurance company shall meet the following criteria:
1. the applicant company's total assets as at the end of the year prior to the application for establishment shall be no less than USD 5 billion;
2. the country or region in which the foreign insurance company is based shall have a sound system for the regulation of insurance business and the foreign insurance company concerned shall be subject to the effective supervision of the relevant authority in that country or region;
3.
......
Order of the State Council of the People's Republic of China No. 720
September 30, 2019
(Promulgated on December 12, 2001 under the Order of the State Council of the People's Republic of China No. 336; and revised for the first time on May 30, 2013 under the Decision of the State Council on Revising the Administrative Regulation of the People's Republic of China on Foreign-invested Insurance Companies; revised for the second time on February 6, 2016 under the Decision of the State Council on Revising Certain Administrative Regulations; and revised for the third time on September 30, 2019 under the Decision of the State Council on Revising the Administrative Regulations of the People's Republic of China on Foreign-invested Insurance Companies and the Administrative Regulations of the People's Republic of China on Foreign-invested Banks)
Chapter I General Provisions
Article 1 These Regulations have been enacted for the purpose of satisfying the requirements of opening up to the outside world and economic development, strengthening and improving the supervision and administration of foreign invested insurance companies, and promoting the healthy development of the insurance industry.
Article 2 The term "foreign invested insurance company" as referred to in these Regulations shall mean any of the following types of insurance companies established and approved in accordance with relevant laws and administrative regulations to carry on business within the territory of the People's Republic of China:
1. an insurance company established by a foreign insurance company and a Chinese company or enterprise within the territory of China to carry on joint business operations (hereinafter referred to as a joint venture insurance company);
2. a foreign invested insurance company established and invested in by a foreign insurance company to carry on business operations within the territory of China (hereinafter referred to as a wholly foreign-owned insurance company); or
3. a branch office of a foreign insurance company established within the territory of China (hereinafter referred to as a foreign insurance company branch).
Article 3 Foreign invested insurance companies shall abide by the laws and regulations of China and shall not damage the social public interests of China.
The lawful business operations, rights and interests of foreign invested insurance companies shall be subject to the protection of Chinese law.
Article 4 The insurance regulatory authority under the State Council shall be responsible for the supervision and regulation of foreign invested insurance companies. The representative offices of the insurance regulatory authority under the State Council shall, on the basis of the authorization of the insurance regulatory authority under the State Council, be responsible for the day to day supervision and regulation of foreign invested insurance companies within their respective jurisdictions.
Chapter II Establishment and Registration
Article 5 The establishment of a foreign invested insurance company shall be subject to the approval of the insurance regulatory authority under the State Council.
The locations in which foreign invested insurance companies may be established shall be determined by the insurance regulatory authority under the State Council in accordance with the relevant provisions.
Article 6 For the establishment of a foreign invested insurance company that seeks to engage in personal insurance or property insurance, the form of establishment and proportion of foreign capital shall be determined by the insurance regulatory authority under the State Council in accordance with the relevant provisions.
Article 7 The minimum registered capital of a Sino-foreign joint venture insurance company or a wholly-owned insurance company shall be CNY200 million or the equivalent amount in freely exchangeable currency; the minimum registered capital shall be fully paid up capital.
The head office of a foreign invested insurance company shall provide its branch offices with a total of no less than CNY200 million or the equivalent amount in freely exchangeable currency as operating funds.
The insurance regulatory authority under the State Council may, according to the scope of business and business scale of the foreign invested insurance company concerned, increase the minimum amount of registered capital or operating funds of foreign invested insurance company required in the above two paragraphs.
Article 8 Any foreign insurance company that applies for permission to establish a foreign invested insurance company shall meet the following criteria:
1. the applicant company's total assets as at the end of the year prior to the application for establishment shall be no less than USD 5 billion;
2. the country or region in which the foreign insurance company is based shall have a sound system for the regulation of insurance business and the foreign insurance company concerned shall be subject to the effective supervision of the relevant authority in that country or region;
3.
......