China – CBIRC Issues Notices Allowing ‘Foreign-Invested’ Insurance Agencies And Loss Adjusters.

 

7 July, 2018

 

 

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.