China Insurance Regulatory Commission (CIRC), the top Chinese insurance regulator, recently released the revised rules on the management of insurance companies.

The highlight of the revised rules, which are going to take effect from October 1, is that the nation raises threshold for people to enter the market. For instance, provided that a list of companies plan to establish a insurance company, major players should have sustainable profitability, good reputation and no irregular activities in recent three years, apart from net assets of not less than CNY 200 million. In addition, all of them should be set up legally and supervisor of the insurance company should gain concerned certificate from the CIRC.

If the insurance company applies to open branches, it should have affluent solvency in recent two consecutive years. Notably, it should establish a provincial branch in a province or a city first if it plans to set up any other level branches there.