A more stringent law governing the ownership of Chinese insurers
The China Insurance Regulatory Commission (CIRC) has unveiled the new law governing the ownership of insurers.
Considered more restrictive, the document includes 94 decrees instead of 37 previously. Several provisions come to frame the shareholding structure with a view to putting an end to bad practices such as those highlighted in the Anbang case.
According to the document published on the CIRC website, insurers must have a reasonable capital structure and must disclose to the regulator, the entity effectively controlling their company.
The maximum shareholding threshold for a stakeholder is now set at 33%. Holding shares through intermediary companies is also prohibited.
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