The State Council of the People’s Republic of China has issued Several Opinions on Accelerating the Development of the Modern Insurance Industry (“2014 Insurance Opinions”), effective from 10 August 2014.
Further opening up and modernising China’s insurance industry and market is one of the strategic initiatives set out in the 2014 Insurance Opinions. More specifically:
- Foreign insurance companies are encouraged to bring advanced experience and technology into the China market;
- Mergers and acquisitions and reorganisations of insurance companies in China will be systematically regulated;
- The Chinese government will support domestic insurance companies to be listed on both the domestic and overseas stock markets;
- Domestic insurance companies are encouraged to enter overseas markets through various channels and to export their services; and
- The scope of outbound investment using domestic insurance capital is to be expanded.
Earlier this year, the China Insurance Regulatory Commission issued the Administrative Measures for the Merger and Acquisition of Insurance Companies, effective from 1 June 2014.