CBIRC amended Implementation Rules for Regulations on Foreign-funded Insurance Companies
ISSUING AUTHORITY:
China Banking and Insurance Regulatory Commission
DATE OF ISSUANCE:
March 10, 2021
EFFECTIVE DATE:
March 10, 2021
On March 10, 2021, China Banking and Insurance Regulatory Commission (CBIRC) officially adopted the amended Implementation Rules for the Regulations of the People's Republic of China on Foreign-funded Insurance Companies (“Implementation Rules”). The amended Implementation Rules include several significant changes which aim to further promote the opening up of the insurance industry.
First of all, the amended Implementation Rules remove the 51% ownership cap for foreign companies investing into a joint venture life insurance company. This change was made in order to be consistent with the Notice of the General Office of the CBIRC on Clarifying the Time Point for Cancelling the Restrictions on the Proportion of Foreign Shares in Joint Venture Life Insurance Companies that came into effect in January 1, 2020.
Secondly, although foreign insurance group companies and overseas financial institutions were allowed to take shares in foreign-funded insurance companies from 2019 following the introduction of the Administrative Regulations of the People's Republic of China on Foreign-funded Insurance Companies, the amended Implementation Rules, for the first time, set out specific requirements that foreign insurance group companies and overseas financial institutions shall satisfy in order to establish a foreign-funded insurance company. Under the amended Implementation Rules, the shareholding ratio of foreign insurance companies or foreign insurance group companies in a foreign-funded insurance company is without limitation, while that of overseas financial institutions and Chinese shareholders shall be subject to the limitations as stipulated in the Administrative Measures on Equity of Insurance Companies.
Moreover, the amended Implementation Rules provide specific rules for foreign insurance companies and foreign insurance group companies to follow in order to establish foreign-funded insurance group companies. The amended Implementation Rules also state that where an investment in a foreign-funded insurance company affects or may affect the national security, such investment shall be subject to security review in accordance with the law.
Reference:
中國銀行保險監督管理委員會令（2021年第2號）《中國銀保監會關于修改<中華人民共和國外資保險公司管理條例實施細則>的決定》
