Administrative Measures for the Insurance Clauses and Insurance Rates of Property Insurance Companies
Administrative Measures for the Insurance Clauses and Insurance Rates of Property Insurance Companies
Administrative Measures for the Insurance Clauses and Insurance Rates of Property Insurance Companies
Order of the China Banking and Insurance Regulatory Commission [2021] No.10
August 16, 2021
The Administrative Measures for the Insurance Clauses and Insurance Rates of Property Insurance Companies, which have been deliberated and adopted at the third executive meeting of the China Banking and Insurance Regulatory Commission in 2021 on April 2, 2021, are hereby issued and shall come into force as of October 1, 2021.
Guo Shuqing, Chairman
Administrative Measures for the Insurance Clauses and Insurance Rates of Property Insurance Companies
Chapter I General Provisions
Article 1 The Administrative Measures for the Insurance Clauses and Insurance Rates of Property Insurance Companies (the "Measures") are formulated in accordance with the Insurance Law of the People's Republic of China with a view to strengthening and improving the supervision and administration of insurance clauses and insurance rates of property insurance companies, protecting the legitimate rights and interests of policy holders, the insured and beneficiaries, maintaining the order of the insurance market, and encouraging innovation among property insurance companies.
Article 2 The China Banking and Insurance Regulatory Commission (the "CBIRC") and its local offices shall supervise and administer the insurance clauses and insurance rates of property insurance companies and their branches in accordance with the law and follow the principles of protecting social public interests, preventing unfair competition, and coordinating their supervision and administration with the regulation of market acts.
Article 3 The insurance clauses and insurance rates of property insurance companies shall be subject to classified regulation and territorial regulation. The specific provisions shall be separately formulated by the CBIRC.
Article 4 Property insurance companies shall formulate insurance clauses and determine insurance rates in accordance with laws, administrative regulations and the relevant provisions of the CBIRC, and shall assume the corresponding responsibilities regarding the insurance clauses and insurance rates.
Article 5 Property insurance companies shall, in accordance with the Measures, report the insurance clauses and insurance rates to the CBIRC or its local offices at the provincial level for approval or record-filing. Branches of property insurance companies shall not report the insurance clauses and insurance rates for approval or record-filing.
Article 6 The Insurance Association of China shall earnestly perform the responsibilities of industry self-regulation for the insurance clauses and insurance rates, promote the popularization, standardization and normalization of insurance clauses and insurance rates, study, formulate and revise industrial model clauses for major insurance types, and establish the mechanism for evaluation of insurance clauses and rates as well as the mechanism for innovation protection. The China Association of Actuaries shall study, determine and revise the pure risk loss rates as industry benchmarks for major insurance types.
Chapter II Development of Clauses and Determination of Rates
Article 7 The insurance clauses and insurance rates of property insurance companies shall comply with laws and regulations, shall be fair and reasonable, and shall not infringe on the legitimate rights and interests of policy holders, the insured and beneficiaries, or be prejudicial to the financial stability and solvency of property insurance companies; they shall also conform to insurance principles, respect social ethics, and comply with the Insurance Law of the People's Republic of China and other laws and administrative regulations, as well as the relevant provisions of the CBIRC, and shall not violate the public order or good customs, or harm social public interests.
Article 8 The insurance clauses of property insurance companies shall have all necessary elements, clear structure, accurate wording, and rigorous expression, be easy to understand, and named in accordance with the naming rules.
Article 9 The insurance rates of property insurance companies shall be determined scientifically in line with the principles of reasonableness, fairness and adequacy, and shall not hinder fair competition in the market; if the insurance rates may fluctuate, the conditions for and scope of adjustment to the insurance rates shall be clarified.
Article 10 The compliance officer and chief actuary of a property insurance company shall examine insurance clauses and insurance rates respectively, and assume the corresponding responsibilities.
Article 11 A property insurance company shall provide the compliance officer and chief actuary with the information necessary for the performance of their duties and fully respect their professional opinions.
A property insurance company shall strengthen the management of the compliance officer and chief actuary, and establish and improve the corresponding internal control and accountability mechanisms in accordance with the relevant provisions of the CBIRC.
Article 12 A property insurance company shall submit a legal examination statement issued by the compliance officer in accordance with the Measures.
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Order of the China Banking and Insurance Regulatory Commission [2021] No.10
August 16, 2021
The Administrative Measures for the Insurance Clauses and Insurance Rates of Property Insurance Companies, which have been deliberated and adopted at the third executive meeting of the China Banking and Insurance Regulatory Commission in 2021 on April 2, 2021, are hereby issued and shall come into force as of October 1, 2021.
Guo Shuqing, Chairman
Administrative Measures for the Insurance Clauses and Insurance Rates of Property Insurance Companies
Chapter I General Provisions
Article 1 The Administrative Measures for the Insurance Clauses and Insurance Rates of Property Insurance Companies (the "Measures") are formulated in accordance with the Insurance Law of the People's Republic of China with a view to strengthening and improving the supervision and administration of insurance clauses and insurance rates of property insurance companies, protecting the legitimate rights and interests of policy holders, the insured and beneficiaries, maintaining the order of the insurance market, and encouraging innovation among property insurance companies.
Article 2 The China Banking and Insurance Regulatory Commission (the "CBIRC") and its local offices shall supervise and administer the insurance clauses and insurance rates of property insurance companies and their branches in accordance with the law and follow the principles of protecting social public interests, preventing unfair competition, and coordinating their supervision and administration with the regulation of market acts.
Article 3 The insurance clauses and insurance rates of property insurance companies shall be subject to classified regulation and territorial regulation. The specific provisions shall be separately formulated by the CBIRC.
Article 4 Property insurance companies shall formulate insurance clauses and determine insurance rates in accordance with laws, administrative regulations and the relevant provisions of the CBIRC, and shall assume the corresponding responsibilities regarding the insurance clauses and insurance rates.
Article 5 Property insurance companies shall, in accordance with the Measures, report the insurance clauses and insurance rates to the CBIRC or its local offices at the provincial level for approval or record-filing. Branches of property insurance companies shall not report the insurance clauses and insurance rates for approval or record-filing.
Article 6 The Insurance Association of China shall earnestly perform the responsibilities of industry self-regulation for the insurance clauses and insurance rates, promote the popularization, standardization and normalization of insurance clauses and insurance rates, study, formulate and revise industrial model clauses for major insurance types, and establish the mechanism for evaluation of insurance clauses and rates as well as the mechanism for innovation protection. The China Association of Actuaries shall study, determine and revise the pure risk loss rates as industry benchmarks for major insurance types.
Chapter II Development of Clauses and Determination of Rates
Article 7 The insurance clauses and insurance rates of property insurance companies shall comply with laws and regulations, shall be fair and reasonable, and shall not infringe on the legitimate rights and interests of policy holders, the insured and beneficiaries, or be prejudicial to the financial stability and solvency of property insurance companies; they shall also conform to insurance principles, respect social ethics, and comply with the Insurance Law of the People's Republic of China and other laws and administrative regulations, as well as the relevant provisions of the CBIRC, and shall not violate the public order or good customs, or harm social public interests.
Article 8 The insurance clauses of property insurance companies shall have all necessary elements, clear structure, accurate wording, and rigorous expression, be easy to understand, and named in accordance with the naming rules.
Article 9 The insurance rates of property insurance companies shall be determined scientifically in line with the principles of reasonableness, fairness and adequacy, and shall not hinder fair competition in the market; if the insurance rates may fluctuate, the conditions for and scope of adjustment to the insurance rates shall be clarified.
Article 10 The compliance officer and chief actuary of a property insurance company shall examine insurance clauses and insurance rates respectively, and assume the corresponding responsibilities.
Article 11 A property insurance company shall provide the compliance officer and chief actuary with the information necessary for the performance of their duties and fully respect their professional opinions.
A property insurance company shall strengthen the management of the compliance officer and chief actuary, and establish and improve the corresponding internal control and accountability mechanisms in accordance with the relevant provisions of the CBIRC.
Article 12 A property insurance company shall submit a legal examination statement issued by the compliance officer in accordance with the Measures.
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