China’s insurance regulator has issued an exposure draft to clarify the access standards for foreign insurance group companies and overseas financial institutions.
The draft document is entitled “Decision on Amending Regulations on the Administration of Foreign-funded Insurance Companies in the People’s Republic of China (Draft for Solicitation of Comments)”.
The proposed revised regulation also fine-tunes shareholder change requirements and scrap foreign ownership ratios, according to CBIRC.
If a foreign-funded insurance company changes its shareholders and the proposed transferee or successor is a foreign insurance company or a foreign insurance group company, it shall comply with the relevant requirements of the Regulations and implementation rules. If an overseas financial institution other than an insurance company or an insurance group company becomes a shareholder of a foreign-funded insurance company, the relevant provisions of the “Measures for the Administration of the Equity of Insurance Companies” shall apply.
New market access conditions will not be added and entry barriers will not be raised under the revised regulation, the CBIRC said, adding that the domestic and foreign insurers will be able to conduct business under the same rules.
The revised regulation aims to promote a higher level of opening-up while continuing to strengthen risk management and control, according to the CBIRC.
The deadline for feedback on the draft is 15 February 2021.