China Suspends Approving New Insurance Agencies

On 26 March 2012, China Insurance Regulatory Commission ("CIRC") issued the Notice on Suspension of Market Entry Approval of Regional Insurance Agencies and Certain Part-time Insurance Agencies ("Notice").

Pursuant to the Notice, the CIRC and its local offices will suspend granting new licences to full-time insurance agencies operating on a regional basis ("Regional Insurance Agencies") as well as to branch offices of existing Regional Insurance Agencies. In addition, no new licences for part-time insurance agency businesses will be granted unless the respective applicant is a financial institution or a China Post office.

The CIRC emphasised in the Notice that its local offices shall continue to support the establishment of insurance intermediary groups and full-time insurance agencies operating on a nationwide basis, as well as continue to support their respective branch offices.