Rules for Insurance Intermediary Supervision Unveiled

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

Four factors are highlighted. Firstly, the CIRC further defines insurance intermediaries' responsibility and obligation so as to well protect consumers' right and interest. Secondly, the CIRC raises threshold for people to enter the field properly. The minimum registered capital of insurance brokers and national insurance agencies is adjusted into CNY 10 million and that of regional insurance agencies is adjusted into CNY 2 million. In addition, their shareholders and initiators should own good reputation and have no severe irregularity in recent three years. The qualification for their top executives is raised, too. Thirdly, the CIRC will shift supervision focus onto market and risk. Last, to let the market play an active role in allocating and consolidating the insurance intermediary resources.

As at the end of September 2009, China has 1,864 insurance agencies, 362 insurance brokers and 280 insurance assessors.