New Rules for Insurance Agents to Take Effect in January 2021

The China Banking and Insurance Regulatory Commission (CBIRC) recently released Rules on Insurance Agents (CBIRC Order No. 11 [2020]), which will take effect on 1 January 2021. Under the new rules, corporate insurance agents must comply with requirements set by the insurance regulatory authority of the State Council and obtain a business licence to engage in insurance agency business. Insurance agents must obey laws and regulations and adhere to the principles of free will, good faith and fair competition.

Market entry management and vetting of shareholders of corporate insurance agents will be strengthened and provisions will be made in relation to agents’ governance structures, internal controls and commercial model. Management and control of subsidiaries will also be tightened to prevent unchecked opening of branches. The minimum registered capital of regional insurance agencies will also be raised to RMB 20 million.

Source: China Banking and Insurance Regulatory Commission