The Chinese insurance regulator has, for the first time, approved the establishment of three mutual insurance associations: Zhonghui Property Mutual; Huiyou Construction Property Mutual; and Xinmei Life Mutual.
The establishment of mutual insurers was only permitted following the Chinese government’s introduction of new regulations in February 2015. The minimum start-up capital requirements for mutual insurance company licences are determined by the type of mutual. For general mutual insurers, the minimum capital is CNY100million (approximately US$15 million), with a minimum of 500 members. For professional and regional mutual insurers, the minimum capital and minimum number of members is CNY10million (approximately US$1.5 million) and 100 respectively.