After three or more years of regulatory uncertainty in the
world's second largest insurance market, calendar year 2018 saw
the newly merged China regulator – the China Banking &
Insurance Regulatory Commission (CBIRC) – issue a slew of new
regulations, with a number of aims.
First, to encourage foreign-insurer controlling equity interests
in CBIRC-regulated carriers, brokers and managing agents.
Second, to actively and explicitly prevent a single domestic
shareholder from ever acquiring controlling equity interests in
CBIRC-regulated carriers (with grandfathering exceptions remaining
– tentatively – for existing circumstances).
Third, to clean up market misconduct by CBIRC-regulated entities
and set significantly higher 'fit & proper' criteria
for existing and prospective shareholders of CBIRC-regulated
entities.
