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CBIRC Strengthens Supervision of Insurance Group Companies

Mon, 10 Jan 2022
Categories: China Legal Trends

On 24 Nov. 2021, China Banking and Insurance Regulatory Commission (CBIRC) issued the“Administrative Measures for the Supervision of Insurance Group Companies” (hereinafter “the Measures”, 保险集团公司监督管理办法) on the basis of the“Administrative Measures for the Insurance Group Companies (for Trial Implementation)” (保险集团公司管理办法(试行)) promulgated by the previous China Insurance Regulatory Commission.

The Measures applies to the insurance group companies, i.e., companies registered in accordance with the law and approved by the CBIRC, with the words “insurance group” or “insurance holding” in their names and exercising control, joint control, or significant influence over the member companies of its insurance group.

The Measures adds a new chapter on “Risk Management”, requiring insurance group companies to integrate group risk management resources and establish a comprehensive risk management system that is compatible with the group. It also adds specific regulations of issues like the management of related-party transactions.

By the end of 2020, there had been 13 insurance groups in China with total assets of 22 trillion yuan ($3.5 trillion in USD). The financial risks within them are currently on the rise and thus need to be regulated.

 

 

Cover Photo by 孙 铭泽 on Unsplash

Contributors: CJO Staff Contributors Team

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