The China Insurance Regulatory Commission (CIRC) promulgated the revised measures on 11 September 2008, which took effect on the promulgation day.
Based on the revised measures, insurance companies and investment-type non-life insurance policy businesses are required to make payments to the fund at rates based on gross insurance policy sales rather than retained premiums, in order to provide better protection to policyholders rather than insurance companies. Reinsurance companies are excluded from the fund. As a result, they will not be entitled to any form of compensation in the case of default by an insurance company. Government-backed, policy-oriented insurance products and company pension fund products are exempt from making such contributions.
In addition to investing in national debt, the insurance protection fund can now also invest in central bank bills, central government-owned company bonds and financial bonds issued by the central government's financial institutions. Previously, the protection fund could only invest in national debt. Cash from the protection fund can be used, with the approval of the State Council, in the event that insurance companies go bankrupt or when there are cases of material risk.