April 12, 2017

CIRC published rules on the strengthened disclosure requirement for China mutual insurers

On 7th April 2017, CIRC published the Rules on the Strengthened Disclosure Requirement for China Mutual Insurers by CIRC (Rules) concerning disclosure requirements for China mutual insurers (China Mutuals).

The Rules state that for disclosure purposes, China Mutuals will be deemed, and treated, as 'non-listed public enterprises', with China Mutuals required to disclose the following;

  1. Organisation Governance details
  2. Operational & Management details.
  3. Details of Directors, Supervisors and Senior Management.
  4. Related-party Transaction details.
  5. Materially important items.
  6. Any other item which CIRC may require be disclosed.

The level of disclosure demanded by the Rules for China Mutuals for items 1 - 3 above is likely to be more onerous than that required of other CIRC-regulated insurers.

As at 11th April 2017, CIRC had already approved and licensed two China Mutuals - Sunshine Agricultural Mutual Insurance Company and Zhonghui Property Mutual Insurance Society, with a further two China Mutuals having received in-principle CIRC approval - Friends Construction & Property Mutual Insurance Society and Xinmei Life Mutual Insurance Society.

The Rules will become effective 1st May 2017.