The CIRC Is Strict In Market Access &Nbsp, And The Insurance Company Shall Not Use Capital Before Opening Business.

Strict supervision has become one of the main tasks of the CIRC this year. Yesterday (April 27th), Insurance Regulatory Commission A notice was issued on Issuing the guidelines for the acceptance of insurance companies' opening practice, which explicitly stipulates that no capital may be used before the company is allowed to open business.

The China Insurance Regulatory Commission stipulates that the minimum registered capital of an insurance company is RMB 200 million yuan, and it must be paid in capital. Investment A person should pay the subscription amount or capital contribution to a commercial bank with good creditworthiness, and shall not use capital before the company is allowed to open business. A company should have a feasible business plan, and its business plan should conform to the requirements of industry planning and supervision. The business plan must specify the market orientation, business area and business strategy of the company.

Opening application materials must also include Management The plan includes the following three years: the company's business development plan, the planned insurance plan, the branch expansion plan, the sales channel development plan, the reinsurance plan, the profit level and solvency forecast, the medium and long-term asset allocation plan and so on. The company's business development plan, planned insurance plan, branch expansion plan and sales channel development plan should conform to the company's capital status and shareholders' continuous investment ability.

It is worth noting that the CIRC has clearly stated that the financial accounting report of the investor in the previous year audited by an accounting firm, and the investor is an overseas financial institution or a major shareholder (holding more than 15% of the insurance company's shares or less than 15%, but directly or indirectly controlling the shareholders of the insurance company), shall submit the financial accounting report audited by the accounting firm for the past three years.

In addition, investors who make financial institutions should submit reports on prudent supervision indicators and regulatory opinions issued by financial regulatory agencies.

It is reported that the guidelines apply to the insurance companies of Chinese funded enterprises (the insurance companies with foreign capital contribution or shareholding ratio less than 25% of the registered capital). The insurance group (holding) company, the foreign insurance company, and the insurance Asset Management Co will be opened for inspection and acceptance. The guidelines will be implemented from July 1st.