It is common nowadays for international corporations to take out
a single master policy covering global risks. However, given the
mandatory Chinese regulatory requirement that domestic entities in
China must take out insurance with insurance companies registered
in China, it is still not entirely clear whether it is valid under
Chinese law for foreign legal entities which have subsidiaries in
China to take out a single insurance policy issued by a foreign
insurer covering all their global subsidiaries (the Global Master
Policy).
Article 7 of the PRC Insurance Law provides as a general
principle that:-
"Legal entities and other organizations within the
territory of the People's Republic of China which need domestic
insurance shall take up insurance from insurance companies within
the territory of the People's Republic of China."
