CIRC Published New Notice On Provision Of Standard Collateral/Guarantee

Publication of the Notice of the CIRC on Administration of the Provision of Standard Collateral/Guarantee by Offshore-to-China Reinsurance Companies

On 13 March 2017, the China Insurance Regulatory Commission (CIRC) published the Notice of the CIRC on Administration of the Provision of Standard Collateral/Guarantee by Offshore-to-China Reinsurance Companies (中国保监会关于离岸再保险人提供担保措施有关事项的通知) (Notice), with the aim of standardising the placement of collateral and guarantees by offshore-to-China reinsurers (Reinsurers).

The key points contained in the Notice are:

• In order to manage Reinsurer credit risk exposure, cedant China insurers shall require the provision of collateral or guarantees by Reinsurers.