Insurance Law Changes As Industry Heats Up

Authored by Mr. Zhan Hao (Partner at Anjie Law Firm), Zhang Xin and Hong Yanjun

The PRC Insurance Law is being amended again to offer the market more flexibility while tightening supervision. The key changes include greater coverage, consumer protection, funding opportunities and corporate governance.

While far less exploited than other financial sectors in China, the insurance business is growing rapidly – with a capital of Rmb11 trillion ($1.73 trillion) now – in an ever-changing regulatory environment.

To meet the increasing requirements of the industry, the China Insurance Regulatory Commission (CIRC) has decided to adopt the approach of opening up access but strengthening control. In early 2015, the  PRC  Insurance Law abolished the qualification requirements for insurance agency practitioners, as well as the administrative approval process entirely – a significant change. Further amendments, however, are still needed.