China to Strengthen Supervision of Foreign-Funded InsuranceChina will launch a specialized check of the improper operations by representative offices of foreign insurance companies, said an official from the China Insurance Regulatory Commission (CIRC).The official blamed some foreign representative offices engaged in property insurance, reinsurance and agency businesses -- activities of ignoring China's rules and regulations in the insurance industry. "Their operation has gone against China's rules and their original aim of setting up contacts with their Chinese counterparts," said the official. He noted that the CIRC has listed the job of putting foreign insurance representatives into order as a priority of their work and they will strengthen supervision of the management of these representatives. He reaffirmed the conditions required for foreign insurance companies to be able apply for insurance businesses in China as thirty-years of insurance business history, five billion U.S. dollars worth of assets, and two years of experience at setting up representatives in China. The official also disclosed that the country is now formulating regulations on the supervision of foreign insurance companies, which is expected to be taken into effect soon. So far, more than 200 foreign insurance companies have set up representatives in China. |
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