Pilot Program of the Recordation Administration of the Cross-Regional Business Operations of Insurance Companies

 2018-06-08  53


Notice of the Beijing Bureau of the China Insurance Regulatory Commission, the Tianjin Bureau of the China Insurance Regulatory Commission and the Hebei Bureau of the China Insurance Regulatory Commission on Matters concerning the Pilot Program of the Recordation Administration of the Cross-Regional Business Operations of Insurance Companies in Beijing, Tianjin, and Hebei


· Document Number:No. 70 [2017] of the Beijing Bureau of the China Insurance Regulatory Commission

· Area of Law: Insurance

· Level of Authority: Local Regulatory Documents

· Date issued:04-17-2017

· Effective Date:04-17-2017

· Status: Effective

· Issuing Authority: Other Institutions of Beijing Municipality Other Institutions of Tianjin Municipality Other Institutions of Hebei Province

 

Notice of the Beijing Bureau of the China Insurance Regulatory Commission, the Tianjin Bureau of the China Insurance Regulatory Commission and the Hebei Bureau of the China Insurance Regulatory Commission on Matters concerning the Pilot Program of the Recordation Administration of the Cross-Regional Business Operations of Insurance Companies in Beijing, Tianjin, and Hebei
(No. 70 [2017] of the Beijing Bureau of the China Insurance Regulatory Commission)
All relevant insurance institutions within the jurisdictions of Beijing, Tianjin, and Hebei:
For purposes thoroughly implementing the spirit of the Guiding Opinions of the China Insurance Regulatory Commission for Serving the Coordinated Development of the Insurance Industry of Beijing, Tianjin and Hebei (No. 106 [2015], CIRC), the Notice of the China Insurance Regulatory Commission on Issuing the Pilot Measures for the Recordation Administration of the Cross-Regional Business Operations of Insurance Companies in Beijing, Tianjin, and Hebei and for the Implementation of the Pilot Program (No. 1 [2017], CIRC, hereinafter referred to as the “Notice on the Pilot Measures for the Recordation of Insurance Companies”), the Notice of the China Insurance Regulatory Commission on Issuing the Pilot Measures for the Recordation Administration of the Cross-Regional Business Operations of Full-Time Insurance Agencies in Beijing, Tianjin, and Hebei and for the Implementation of the Pilot Program (No. 3 [2017], CIRC, hereinafter referred to as the “Notice on the Pilot Measures for the Recordation of Full-Time Insurance Agencies”), the Notice of the China Insurance Regulatory Commission on Issuing the Pilot Measures for the Recordation Administration of the Qualifications of Senior Executives in Branch Offices of Insurance Companies in Beijing, Tianjin, and Hebei and Conducting the Pilot Program (No. 94 [2016], CIRC, hereinafter referred to as the “Notice on the Pilot Measures for the Recordation of Senior Executives”) and other documents, advancing the integrated development of insurance services in Beijing, Tianjin, and Hebei, and promoting the coordinated development of the insurance industry in Beijing, Tianjin, and Hebei, in light of the actual circumstances of the insurance market in the above three regions, you are hereby notified of relevant matters as follows:
I. Matters on the establishment of institutions. To conduct the property insurance business which concern the public interest, involving life insurance, auto insurance, and household property insurance, an insurance company shall generally establish branch offices below the provincial level at the locality of recordation and ensure that the effective protection of consumers' rights and interests, their compliance with regulations in conducting business operations and effective prevention of risks. The naming of a branch office shall generally follow the principle of “the full name of the headquarter of the insurance company plus the name of the branch office,” and comply with the relevant requirements of the administrative department for industry and commerce. The person in charge of a branch office shall not concurrently hold the posts of any branch office in different regions.
II. Matters on insurance products. An insurance company conducting cross-regional business operations shall report for recordation and use insurance products that meet regulatory requirements and premium rates at the locality of recordation. In an insurance policy, the company's domicile, follow-up services and other key information shall be specified in bold font to give consumers necessary reminders.
III. Matters on the submission of solvency reports. To apply for the recordation of cross-regional business operations, the solvency of the headquarters of an insurance company in the previous year and the two consecutive quarters before an application is filed shall satisfy the relevant requirements of the Administrative Measures for the Market Access of the Branch Offices of Insurance Companies on the solvency of newly formed branch offices. The solvency report in the recordation materials shall comply with the requirements of the Notice of the China Insurance Regulatory Commission on Matters concerning the Formal Implementation of the China Risk Oriented Solvency System (No. 10 [1016], CIRC) for reporting matters. An audited solvency report of the previous year must include an audit report bearing the opinions of the audit firm with its signature or seal. Where the solvency report has not yet been completed when an application for the recordation of cross-regional business operations is submitted, the relevant reports completed in the most recent period may be provided with the explanations attached, and be additionally submitted until the solvency report is completed.
IV. Matters on the construction of information systems. An insurance institution conducting cross-regional business operations shall comply with the requirements of the local CIRC bureau of recordation for the construction of information systems, establish an official document transmission mechanism with the local CIRC bureau of recordation, and achieve data exchange and other functions with the relevant platforms of the insurance industry at the locality of recordation. The statistical data on cross-regional business operations shall comply with the relevant requirements of the Notice on the Pilot Measures for the Recordation of Insurance Companies and the Notice on the Pilot Measures for the Recordation of Full-Time Insurance Agencies to avoid repetitive statistics.
V. Matters on full-time insurance agencies. The registered capital of a national full-time insurance agency intending to conduct cross-regional business operations shall not be less than CNY 50 million. If a full-time insurance agency applies to the insurance bureau for the recordation of cross-regional business operations, in addition to the materials set forth in items (1) through (4) of Article 7 of the Notice on the Pilot Measures for the Recordation of Full-Time Insurance Agencies, it shall still provide the financial statements of the previous year.
VI. Matters on reports and complaints by visits and letters. Where an insurance company conducting cross-regional business operations establishes two or more branch offices at the locality of recordation, it shall authorize one of the branches to be responsible for handling the reports by visits and letters, consumers' complaints and other matters transferred by the local insurance bureau of recordation and providing relevant materials as required by the local insurance bureau of recordation.
VII. Matters on the office qualification examination for senior executives. The mutual recognition system for the office qualification examination results of senior executives in the branch offices of insurance companies in Beijing, Tianjin and Hebei shall be implemented, the persons to be assigned within the jurisdiction of Beijing, Tianjin or Hebei may take the office qualification examination for senior executives in any of three local insurance bureaus, and after they pass the examination, shall obtain valid certificates proving that they have passed the examination as a basis for applying for the office qualifications of senior executives in any region of Beijing, Tianjin and Hebei. The examination results shall be valid for one year.
VIII. In the course of undergoing the cross-regional recordation formalities and conducting cross-regional business operations, all insurance institutions shall strictly abide by the regulatory requirements at the locality of recordation and ensure that they conduct business operations in compliance with laws and regulations.
IX. This Notice shall come into force on the date of issuance. The implementation term thereof shall be consistent with the pilot term set forth in the Notice on the Pilot Measures for the Recordation of Insurance Companies, the Notice on the Pilot Measures for the Recordation of Full-Time Insurance Agencies, and the Notice on the Pilot Measures for the Recordation of Senior Executives.
The provincial branch offices of all insurance companies shall forward this Notice to their headquarters, and effectively coordinate the implementation thereof.
Beijing Bureau of the China Insurance Regulatory Commission
Tianjin Bureau of the China Insurance Regulatory Commission
Hebei Bureau of the China Insurance Regulatory Commission
April 17, 2017