On 11 May 2018, the China Banking & Insurance Regulatory Commission (CBIRC) issued Regulations Governing Information Disclosure by Insurance Companies (the Disclosure Regulations).
These Disclosure Regulations replace those of the same name published in 2010, and compared with the 2010 regulations, these Disclosure Regulations require far greater depth and breadth of content of information disclosed (Disclosure) by insurance companies (Insurers). Key requirements of the Disclosure Regulations are:
1. The Disclosure Regulations require that an Insurer Disclose detailed information in eight areas:
- 'Fundamental & Essential' details;
- Financial & Accounting;
- Reserving;
- Risk Management;
- Product Management;
- Regulatory Solvency;
- Material Related Party Transactions; and
- Other Material Matters.
The Disclosure Regulations contain highly prescriptive and highly detailed requirements for Disclosure in each of these eight areas. Of note is that these requirements vary as between general Insurers and life Insurers.
2. The Disclosure Regulations require Insurers to maintain public web-sites, and within their public web-sites to create a highly visible and accessible section or link (Disclosure Link) entitled, exactly, 'Public Information Disclosure'. Disclosure required by the Disclosure Regulations must be published to an Insurer's Disclosure Link within those timeframes as stipulated by the Disclosure Regulations.
3. The Disclosure Regulations require all Insurers to establish, internally, 'Information Disclosure Management Processes', and to appoint responsible persons (criteria for whom are set out in the Disclosure Regulations) – "Disclosure Officers" - to take responsibility for the management of an Insurer's public Disclosure, as required under the Disclosure Regulations.
4. In circumstances where an Insurer has failed to comply with the Disclosure Regulations, CBIRC will sanction any or all of (i) the Insurer; (ii) the Insurer's senior management; and (iii) the Insurer's Disclosure Officers.
The Disclosure Regulations come into force 1 July 2018, replacing and repealing all earlier regulations and notices in this area.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.