Requirement to separate non insurance activities

The China Insurance Regulatory Commission (CIRC) submitted a draft directive to local insurers requiring the complete separation of insurance operations from those that are not linked to the insurance business. This requirement shall prevent, among others, insurers from providing loans to a subsidiary that does not have any insurance activity, from underwriting obligations arising from non-insurance subsidiary.

The goal is to prevent risks resulting from activities not covered by insurance strain commitments towards policyholders. This directive does not apply to brokers, agents, and expertise companies.

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