Regulating risk management

With the implementation of the revised insurance law in October 2009, it makes sense that the China Insurance Regulatory Commission (CIRC) would look to revise the Provisions on the Administration of the Reinsurance Business (再保险业务管理规定) (Reinsurance Provision) that it originally promulgated and implemented in 2005. In April 2010, the CIRC promulgated the revised Reinsurance Provisions and these revised measures officially came into effect on July 1 2010. Overall, the new Reinsurance Provisions are more in depth, and provide more detailed instructions for direct insurers and reinsurers. It's likely the CIRC believes these will allow it to more effectively regulate the Chinese reinsurance market, and promote stable and sustainable growth of the Chinese direct insurance market.