China to Tighten Insurance Regulation

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Last updated at: (Beijing Time) Saturday, February 09, 2002

China to Tighten Insurance Regulation

The China Insurance Regulatory Commission (CIRC) will tighten supervision in line with the basic rules of the World Trade Organization WTO), aiming to develop a sound and healthy insurance industry in China.

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Market order and solvency evaluation to be strengthened

CIRC president Ma Yongwei made the promise Friday at a national meeting for insurance enterprises and regulatory administrations, saying that CIRC will further rectify and enhance the system of regulation index of solvency to complete evaluation of the local enterprises' solvency in 2001.

Experts say CIRC's practice of strengthening marketing behavior and solvency evaluation is in the interests of the current insurance industry in China.

This year's major task

Ma said China's insurance industry is facing great challenges following the country's WTO entry.

CIRC will help the local insurance industry open wider and enjoy faster development, he said.

Ma said that the priority of CIRC this year is to improve administrative approval procedure, carry out the insurance charge reform throughout the country, and enhance information in a timely way so as to guarantee effective, efficient regulation work.

The meeting was attended by representatives of 52 insurance enterprises, including 32 foreign business, and 31 CIRC's branch offices throughout the country.

China Regulates Insurance Market

China Speeds up Legislation for Insurance Industry

China will continue to improve legislation for the insurance industry, and will quickly abolish, amend, correct and update existing laws and regulations, which do not meet with the requirements of the World Trade Organization (WTO),an high official said Monday in Beijing.

Since last year, CIRC has clarified 8 rules covering 22 items, and issued laws on the administration of foreign funded insurance and rules on insurance agencies

China Rectifies Insurance Market

China Insurance Regulatory Commission (CIRC) July 19 revealed that from January to June this year, CIRC inspected 186 insurance branches, 3 agencies and 4 foreign insurance companies, revoking 9 firms' qualifications as agencies, punishing 24 senior management staffs and annulling 9 persons' posts.

According to reports, by the end of 2000, among the 10,000 senior management staffs in various insurance institutions, 20 percent were appointed without inspection approval. Personnel's "impure behavior" resulted in occurrence of various problems.

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