The China Banking and Insurance Regulatory Commission ("CBIRC") recently issued the revised Administrative Provisions on Reinsurance Business (the "Provisions"), with effect from December 1, 2021.
The Provisions involve the revisions in eight aspects: (1) strengthening the top-level strategic management of reinsurance; (2) strengthening the supervision of the security of reinsurance business; (3) strengthening the supervision of the management of reinsurance contracts; (4) strengthening the management of direct insurance companies who carry out sub-business; (5) strengthening the supervision of reinsurance brokers; (6) supporting the development of the direct insurance market; (7) removing any content that is inconsistent with the existing regulatory policies; and (8) streamlining the information reporting. Among others, the Opinions specify that an insurer shall formulate reinsurance strategy and define the role of reinsurance in the company's risk and capital management strategy. As for the branch office of a foreign reinsurance company, the formulation, implementation, evaluation and adjustment of its reinsurance strategy shall be subject to the approval of its senior management.
(Source: China Banking and Insurance Regulatory Commission)
The Watson & Band website is intended for informational purposes only. Nothing in this site is to be construed as creating an attorney-client relationship between the reader and Watson & Band or as offering legal advice on any specific matter. Since we are not providing legal advice through this website, you should not act upon any information that you might receive here without first seeking professional counsel. No client or other reader should act or refrain from acting on the basis of any information contained in the Watson & Band website without seeking appropriate legal or other professional advice based on the particular facts and circumstances at issue.
