20 April, 2018
On 11 April 2018, the People’s Bank of China (PBOC) announced 11 measures (FS Measures) aimed at further opening China’s financial services sector to foreign participants.
Of these 11 Measures, 4 were specifically aimed at China’s insurance sector (Insurance Measures) . PBOC stated that these 11 FS Measures would be implemented “…in the coming months, and no later than year end”. The 4 Insurance Measures are:
- Total foreign equity holding limits in China life insurance companies will be lifted from its current cap of 50% to 51%, and within 3 years there will be no cap at all on foreign equity ownership of China life insurance companies.
- Qualified foreign investors will be allowed to conduct insurance agency and loss-adjusting business within China.
- Current limitations on the authorised scope of business of foreign-invested insurance brokers in China will be abolished to allow foreign-invested insurance brokers to enjoy the same authorised scope of business currently enjoyed by domestic-invested insurance brokers; and
- Foreign investors in foreign-invested China insurance companies will no longer need to maintain an authorised Representative Office in China for 2 years prior to making any such investment.
For further information, please contact:
Michael Cripps, Partner, Clyde & Co
michael.cripps@clydeco.com
