On October 27, 2021, Mr. Chen Yuyan, a senior partner of Shanghai Landi Law Firm, was interviewed by a reporter from the Financial Associated Press, and from a professional point of view, he interpreted the "Measures for the Management of Reserves for Non-life Insurance Business of Insurance Companies" recently issued by the Banking and Insurance Regulatory Commission.
Recently, the China Banking and Insurance Regulatory Commission (CBIRC) issued the Measures for the Administration of Reserves for Non-life Insurance Business of Insurance Companies (hereinafter referred to as the "Measures"), which strengthens the supervision and management of the reserves of non-life insurance business of insurance companies, including property insurance companies, life insurance companies and reinsurance companies, which will be implemented from 1 December 2021. The Measures further standardize the reserve assessment requirements for non-life insurance businesses, requiring insurance companies to establish and improve the formation of matching actuarial capacity, internal systems and information systems.
Mr. Chen pointed out that the institutional requirements for reserves for non-life insurance business in the Measures refer to the practices of some life insurance businesses, and fully consider the practical experience of the property insurance business market. In terms of internal control system, the Measures provide clear guidance, which has a good guiding effect on small property insurance companies, especially property insurance companies with incomplete new business types, but also puts forward higher requirements for the operating entities in terms of personnel allocation, internal systems and other software and hardware.
Lawyer Chen further said that from the perspective of historical regulatory penalties, the preparation and provision of false documents is one of the most common reasons for punishment, such as for various reserves, shareholder changes, premium income, etc., once the insurance company is omitted, it will face regulatory rectification suggestions or even penalties. To this end, the Measures further clarify the legal consequences of "the preparation and provision of false reserve assessment reports, reserve retrospective analysis reports and relevant statement documents and materials", in addition to business restrictions, the responsible person can also be fined and revoked, which is enough to see the importance of the CBIRC.
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Randy Rong Legal Protection Team
Finance and insurance business is one of Randy's core business areas, aiming to provide high-quality and professional legal services to Chinese and foreign insurance companies, insurance intermediaries (including insurance professional agencies, insurance brokerage agencies, insurance valuation agencies, insurance concurrently operating agencies) and insurance consumers, covering insurance and reinsurance and other professional fields. At present, Randy's insurance legal service team is composed of leading professional lawyers at home and abroad, all from well-known universities and law schools at home and abroad. The team is fluent in a variety of languages, including chinese and English and has extensive experience in legal services, including expert lawyers with complex disciplinary backgrounds, certified public accountants, external valuation consultants and other senior professionals. Most of the lawyers have engaged in practical work in property insurance companies and life insurance companies, and still serve as legal counsel for many insurance companies, and have published dozens of professional papers in influential journals and magazines at home and abroad.