On 19th May 2020, China's Banking & Insurance Regulatory
Commission ('CBIRC') publicly released its Regulatory
Measures for Credit & Guarantee Insurance (the
'Measures'). The Measures amend an earlier version of
related measures, and the new Measures came into force upon the
date of release (19th May 2020).
The Measures comprise five chapters, containing thirty-five
articles, the key ones of which are:
1. The Measures draw key lines of distinction between how
certain types of credit and guarantee insurance (collectively
'Credit-Guarantee Insurance') are to be regulated.
For example, in respect of the provision of Credit-Guarantee
Insurance underwriting the performance of lending and financial
leasing contracts (collectively 'Financial Contracts'), the
underwriting insurer ('Insurer') must satisfy all the
following criteria – the Insurer must have (i) a core
solvency ratio during the prior two full quarters which was at all
times 75% or better, and its
