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Today in China there are 54 insurance companies PDF

Today in China there are 54 insurance companies, 127 intermediary insurance organizations and more than 70 thousand insurance Agency structures. In the field of insurance 230 thousand people are employed.

In many ways, the rapid growth of the insurance market of China contributed to the amendment of the "law on insurance of China" in 1995. This is the first time the Law has been changed in 11 years of its existence. At the 13th Congress of the Standing Committee of the National people's Congress (PC NPC) of the 9th convocation, held on 28 October 2002, it was finally decided that the amendments would enter into force on 1 January 2003. The changes in the Law are fully aimed at fulfilling the promises of accession to the WTO. Their meaning is to strengthen the protection of the interests of insured persons, to increase control over insurance activities, to support the leadership of the reform and development of insurance in the country. Amendments to the Law concerned 38 articles. Among the most significant is the function of the insurance supervision authorities, which was to establish insurance rates and determine insurance items-now this right is transferred to insurance companies. The system of control over insurance companies was also changed: if earlier the insurance supervision monitored the direct activities of companies in the market, now they are monitored for their solvency. According to the" law on insurance of the PRC", with amendments, the opportunities of companies for property insurance increased, the possibilities of using insurance reserves expanded. Now the Law defines in detail the rules of functioning of insurance intermediaries, especially insurance agents. At the same time, penalties for violation of the "law on insurance of the PRC"became more severe.

The introduction of amendments to the "law on insurance of China" is a big deal on the way to further reform the insurance industry in China. This suggests that the Chinese government not only demonstrates its readiness to integrate the country's insurance industry with the single mechanism of the world insurance market, but also consistently implements a policy in this direction.

Responsibility for the control and regulation of the insurance market lies with the Department of financial control and regulation (DFCR) under the People's Bank of China, which operates under the leadership of the state Council of China. He performs the following functions for the management of insurance activities:

- licensing and suspension of activities of insurance organizations, insurance companies and branches;

- amendments to the insurance rules and premium rates for the main types of insurance;

- supervision, management, control and audit of insurance business;

- identification and liquidation of organizations engaged in insurance activities without a license or in hidden forms.

The establishment of insurance companies is carried out in accordance with the following principles:

- compliance with the requirements of national economy development;

- separate implementation of property and personal insurance;

- rational location and fair competition;

- the desire to conduct cost-effective activities.

Article 69 of the law of the people's Republic of China" on insurance " legislatively establishes the possibility of creating private insurance companies in the form of closed joint stock companies that can work alongside state insurance organizations.

Insurance organizations are created sequentially in two stages: the preparation stage and the opening stage.

At the first stage, an application for the establishment of an insurance company is submitted, to which the following documents are attached:

- information about the position of the investor, including the time of establishment, review and approval body, representative of the legal entity, its registered capital and financial position for the last 3 years;

- business plan;

- questionnaire of the person responsible for training.

The people's Bank of China is checking the candidacy of the person responsible for preparing documents for licensing for insurance activities. Those persons who are not checked by the People's Bank of China or not approved after the inspection, can not be engaged in the organization of the insurance company and subsequently hold senior positions.

The period of approval of the People's Bank of China application for the establishment of the company-3 months. Without receiving confirmation in time, the applicant can not apply again within 6 months.

Insurance companies approved by the People's Bank of China should carry out preparatory work for the beginning of activity in 6 months. If at the end of the preparatory work is not carried out, the documents on permission to start activities automatically lose their force. If there is a special circumstance, subject to the consent of the People's Bank of China, the term may be extended, but the period of preparatory work does not exceed one year. During the preparatory work it is impossible to carry out insurance activities.

At the end of the preparatory period comes the second stage-an application for the beginning of the insurance company and the People's Bank of China submitted the following documents:

- statement-report on the opening of the company;

- capital inspection certificate issued by the capital inspection organization recognized by the People's Bank of China;

- copy of the original document on payment of the authorized capital;

- information about the company's management;

– the main part of the character of the company;

- information on the financial condition of shareholders who will own 10 percent or more of the shares of this insurance company;

- certificate of ownership or lease of premises for insurance activities;

– articles of Association, the relevant requirements of the PRC Law "On insurance" and the Law of the PRC "company»;

- documents confirming: the name of the organization; legal and actual address of the company; the nature of the organization, principles and subject of activity; organizational and legal form of the company; management bodies, as well as the reasons for the suspension of activities or liquidation of the company; rules on types of insurance; reinsurance plan.

Executives of insurance companies – Chairman of the Board of Directors and Deputy General Directors of insurance companies and their deputies, Directors of departments and their deputies of the Director under offices and their deputies, chiefs of bureaus and offices and their deputies who are in the insurance practice of China referred to as the "main responsible person" must meet the requirements of people's Bank of China.

The staff of insurance companies must include at least 60% of employees who previously engaged in insurance business or graduated from universities with specialties in insurance. Personal insurance companies must include at least 1 actuarial professional recognized by the People's Bank of China.

A prerequisite is the availability of premises for activities and equipment corresponding to the volume of work and the number of employees.

Insurance companies authorized by the People's Bank of China must register with the commercial and industrial administration. Only then can insurance companies start insurance activities. Practice shows that from the moment of application to obtain a license takes at least two years.

In case of successful work during the year, an effective system of internal management and no violations, the insurance company must apply for the establishment of branches.

The creation of branches is not only the desire of insurance companies. The law of the PRC" on insurance " requires: with an increase in income from premiums collected, insurance companies must declare the creation of branches.

Consideration and approval of applications for renaming is carried out by the People's Bank of China at two levels:

- the specialized Department of the People's Bank of China considers and approves the establishment and renaming of the following organizations:

a) insurance companies;

b) branches of insurance companies, renaming branches into branches;

C) representative offices of insurance companies;

d) insurance organizations of experimental type;

- branches of the People's Bank of China in provinces, Autonomous regions, cities of Central subordination and cities with separate planning consider and approve the creation and renaming of the following organizations:

(a) offices;

b) offices and renaming them into offices;

C) offices and renaming them into offices.

Structural units of the insurance company can start their activities, if 30 days after the submission of documents, the people's Bank of China has not sent a refusal.

The Supervisory authorities determine the requirements for the names of branches of insurance companies, which must comply with the following procedure:

- branch: insurance company + location name + branch;

- branch: insurance company + location name + branch + branch;

- office: insurance company + name of location + branch + office or office.

Insurance companies can operate only in the territory approved by the People's Bank of China.

Insurance companies that do not have branches can operate only in the territory of their registration.

If the insurance companies are expected to:

- increase or decrease in registered capital;

- change of shareholders;

- change of organizational and legal form;

- change of the subject of activity;

- rename organizations;

- separation and merger of organizations;

- amendments to the Charter;

- change the actual address, they must declare in advance and obtain permission from the People's Bank of China for these changes.

 

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