Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)

Insurance Services

Relevant Mainland Rules and Regulations

Rules and regulations promulgated by the Mainland authorities relating to the implementation of commitments under CEPA :

Establishment of Insurance Companies

According to the "Regulation of the People's Republic of China on the Administration of Foreign-Funded Insurance Companies" (Sep 2019) (in Chinese only) and "Implementation Details of the Regulation of the People's Republic of China on the Administration of Insurance Companies with Foreign Investment" (2021 Revision) (Mar 2021) (in Chinese only), foreign insurance companies applying to establish a foreign-funded insurance company must fulfil the following criteria:
1. Its total assets at the end of the year before its application for the formation is filed were not less than USD 5 billion;
2. The country or region where it is located has a sound insurance regulation system, and it is under the effective regulation by the competent authorities of the country or region where it is located;
3. It satisfies the solvency standards of the country or region where it is located;
4. Its application has been approved by the competent authorities of the country or region where it is located;
5. Other prudential conditions as set out by the CIRC.
According to the "Notice of the CBIRC General Office on Clarifying Timing of Removing Foreign Ownership Restrictions on Joint Venture Life Insurance Companies" (Dec 2019) (in Chinese only), starting from January 1, 2020, the restriction on foreign ownership in joint-venture life insurance companies is removed. Foreign ownership in joint-venture life insurance companies can reach 100%.
For details, please refer to:

Acquisition of Shareholdings in Insurance Companies

According to the "Administrative Measures for Equities of Insurance Companies" (Decree of the China Insurance Regulatory Commission No. 5 - Mar 2018) (in Chinese only), foreign financial institutions investing in shares of insurance companies must fulfil the following criteria:
1. Having continuous profit making record for the recent 3 consecutive accounting years;
2. The total assets as at the end of the most recent year shall not be less than USD 2 billion;
3. Having long term credit rating of A or above given by international credit agencies in the recent 3 years;
4. Having fulfilled the requirements of prudential supervision standards of the financial regulators where they are domiciled, and having satisfied the qualification requirements of relevant shareholders as stated in the "Administrative Measures for Equities of Insurance Companies" (Decree of the China Insurance Regulatory Commission No. 5 - Mar 2018) (in Chinese only).
For details, please refer to:
- "Administrative Measures for Equities of Insurance Companies" (Decree of the China Insurance Regulatory Commission No. 5 - Mar 2018) (in Chinese only)
- "Provisions on the Administration of Insurance Companies (2015 Amendment)" (Dec 2015) (in Chinese only)

Insurance Agency Firms

Hong Kong insurance agency companies setting up insurance agency companies in the Mainland
According to the amended "Agreement on Trade in Services", Hong Kong insurance agency companies setting up wholly-owned insurance agency companies in the Mainland must fulfil the following criteria
1. The applicant must be a Hong Kong insurance agency enterprise;
2. Having been operating insurance agency business for over 3 years.
According to "Provisions on the Regulation of Insurance Agents" (Nov 2020) (in Chinese only) and "Measures for the Implementation of Administrative License and Recordation for Insurance Intermediaries" (Decree of the China Banking and Insurance Regulatory Commission No. 12 - Nov 2021) (in Chinese only), the minimum registered capital of full-time corporate insurance agencies, which operate their business within the province they obtained the business registration, shall have a minimum registered capital of 20 million yuan; for those which operate their business not limited to the registered province, the minimum registered capital shall be 50 million yuan.
Hong Kong insurance brokerage companies setting up insurance agency companies in the Mainland
According to the "Agreement on Trade in Services", Hong Kong insurance brokerage companies setting up wholly-owned insurance agency companies in the Mainland must fulfil the following criteria:
1. The applicant shall have been operating insurance brokerage business in Hong Kong for over 10 years;
2. The applicant's average annual insurance brokerage business revenue for the past 3 years before application shall not be less than HK$500,000 and the total assets as at the end of the year before application shall not be less than HK$500,000;
3. Within 3 years before application, there has been no serious violation of regulations and records of disciplinary action.
According to "Provisions on the Regulation of Insurance Agents" (Nov 2020) (in Chinese only) and "Measures for the Implementation of Administrative License and Recordation for Insurance Intermediaries" (Decree of the China Banking and Insurance Regulatory Commission No. 12 - Nov 2021) (in Chinese only), the minimum registered capital of full-time corporate insurance agencies, which operate their business within the province they obtained the business registration, shall have a minimum registered capital of 20 million yuan; for those which operate their business not limited to the registered province, the minimum registered capital shall be 50 million yuan.
For details, please refer to:

Insurance Broker Firms

According to the "Notice of the China Banking and Insurance Regulatory Commission on Liberalizing the Business Scope of Foreign-funded Insurance Broker Firms" (Circular of the China Banking and Insurance Regulatory Commission No. 19 - Apr 2018) (in Chinese only) and "Measures for the Implementation of Administrative License and Recordation for Insurance Intermediaries" (Decree of the China Banking and Insurance Regulatory Commission No. 12 - Nov 2021) (in Chinese only), Hong Kong insurance brokerage companies setting up wholly-owned insurance brokerage companies in the Mainland, which operate their business within the province they obtained the business registration, shall have a minimum registered capital of 20 million yuan; for those which operate their business not limited to the registered province, the minimum registered capital shall be 50 million yuan.
For details, please refer to:

Insurance Loss Adjusting Firms

For details about further liberalisation of insurance loss adjusting services in the Mainland, please refer to:

Insurance Asset Management Companies

For details about setting up insurance asset management companies in the Mainland, please refer to:
- "Provisions on the Administration of Insurance Asset Management Companies" (Decree of the China Banking and Insurance Regulatory Commission No. 2 - Aug 2022) (in Chinese only)

Issuance of Catastrophe Bonds

For details about issuance of catastrophe bonds by Mainland insurance companies in the Hong Kong market, please refer to:
- "Notice on Issuance of Catastrophe Bonds by Mainland Insurance Companies in the Hong Kong Market" (Circular of the China Banking and Insurance Regulatory Commission No. 102 - Sep 2021) (in Chinese only)
- "Notice of the China Banking and Insurance Regulatory Commission on Matters Concerning the Implementation of Insurance Companies Solvency Regulatory Rules (II) (Circular of the China Banking and Insurance Regulatory Commission No. 52 - Dec 2021) (in Chinese only)

Enquiries concerning the application procedures and requirements for the establishment of foreign-invested insurance enterprises can be directed to :

The National Financial Regulatory Administration
( Website: http://www.cbirc.gov.cn/cn/view/pages/index/index.html )

Main Content

Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)

Insurance Services

Relevant Mainland Rules and Regulations