Ruling an expanding kingdom
May 13, 2010 | BY
clpstaff &clp articlesA new set of measures has been released to regulate domestic insurance companies as their appetite grows for more business operations. As their scope widens, foreign players are presented with a range of investment opportunities
Share:
As China's progress in financial integration intensifies, an increasing number of Chinese insurance companies are not content with limiting themselves to only the insurance business. So now they have started to diversify their range of operations. As of March 31 2010, China already has seven insurance group companies as well as one insurance holding company, with their combined total assets, net assets and premiums constituting 75% or more of the whole industry.
To strengthen the regulations on insurance group companies, the China Insurance Regulatory Commission (CIRC) recently published the Measures for the Administration of Insurance Group Companies (中国保险监督管理委员会保险集团公司管理办法 (试行) (the Measures). The Measures set forth provisions on market entry, corporate governance, capital management, information disclosure and supervision for insurance group companies.