In order to ensure the implementation of the new Insurance Law, the CIRC promulgated a series of regulations at the end of September including the Regulations for the Administration of Insurance Companies, the Regulations for the Supervision of Insurance Agencies, the Regulations for the Supervision of Insurance Brokerage Institutions, the Regulations for the Supervision of Insurance Assessment Institutions, the Measures for Penalties for Illegal Acts of Intermediary Businesses of Insurance Companies and the Measures for the Administration of Information Disclosure for New Products of Personal Insurance. The above six regulations came into force on October 1.

 

The Regulations for the Administration of Insurance Companies applies to insurance companies and their branches. Its rules place an emphasis on improving the level of market access for insurance companies and their branches so as to strengthen the management and supervision of the insurance industry.

 

The Regulations for the Supervision of Insurance Agencies, the Regulations for the Supervision of Insurance Brokerage Institutions and the Regulations for the Supervision of Insurance Assessment Institutions (collectively known as ‘the Three Regulations’) separately revise rules on the three kinds of insurance intermediary institutions in terms of the establishment of the institutions, their managers’ job qualifications, operative rules of institutions, the market exit methods for institutions, the supervision of institutions, and institutions’ legal liabilities. The new Three Regulations add articles related to the protection of the insured’s rights, stipulate detailed rules on prohibiting insurance companies from cheating their clients, prevent insurance companies from performing acts of unfair competition, reduce projects needed to be examined and approved by the government, optimize the responsibility investigation system for senior executives and principals and improve the level of market access for institutions.

 

The Measures for Penalties for Illegal Acts of Intermediary Businesses of Insurance Companies primarily stipulates the requirements which should be complied with by insurance companies when operating intermediary businesses and legal liabilities which should be undertaken by insurance companies when they violate the relevant rules. Furthermore, it rules that insurance companies should establish and optimize the management system for intermediary businesses and ensure that all operations will be legitimate.

 

Under the Measures for the Administration of Information Disclosure for New Products of Personal Insurance, new products of personal insurance are investment-oriented life insurance, universal life insurance, life insurance and other products confirmed by the CIRC. The Measures will attempt to curb sales practices that mislead the consumer.

 

Moreover, the CIRC also requested public opinions for the Regulations for the Administration of Insurance Companies’ Stock Ownership (the Draft) and for the Guidelines for the Implementation of Tests of Major Insurance Risks.

 

(Source: The China Insurance Regulatory Commission)