CIRC Issues Consultation Paper On Draft Rules Governing Insurers' Independent Directors

The China Insurance Regulatory Commission (CIRC) issued the Consultation Paper on draft rules governing insurers' independent directors (Consultation Paper) on 26 December 2017.

Key points of the Consultation Paper are:

• It is recommended that the board of directors of all CIRC-regulated insurers (Insurers) is comprised of at least 2 independent directors, and that in any event the total number of independent directors comprises at least one third of all directors on an Insurer's board. Further, where an Insurer has a single controlling-shareholder, then at least one half of such Insurer's board of directors should be independent directors, excepting that where such single controlling-shareholder is itself either an Insurer or an insurance holding company, in which case an application may be made to CIRC for a waiver of this specific requirement.