On 28 June 2018, the China Banking & Insurance Regulatory Commission (CBIRC) issued two new notices – (i) 'Notice Allowing Foreign-Invested Insurance Agencies'; and (ii) 'Notice Allowing Foreign-Invested Loss Adjusters'. Key elements of the two respective Notices are:
Either or both:
- foreign (to China) insurance agency entities having more than three years continuous operating experience outside China; and
- China foreign-invested insurance companies (FII) having more than three years continuous operating experience within China
may apply to CBIRC to establish a 'foreign-invested insurance agency' (FIIA) within China, where the authorised scope of business of such FIIA, if approved, shall be identical to that currently enjoyed under regulation by China 'domestic-invested insurance agencies' (DIIA).
Either or both:
- foreign (to China) loss adjusting entities having more than three years continuous operating experience outside China; and
- FIIs having more than three years continuous operating experience within China,
may apply to CBIRC to establish a 'foreign-invested loss adjuster' (FILA) within China, where the authorised scope of business of such FILA, if approved, shall be identical to that currently enjoyed under regulation by China 'domestic-invested loss adjusters' (DILA).
This marks the first time in the history of China's insurance sector that FIIAs and FILAs (foreign-invested holdings 25% or greater) have been allowed. Both FIIAs and FILAs may, if approved by CBIRC, be 100% wholly foreign owned.
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.