What is the situation of foreign invested reinsurance companies in China?
On September 17, 2002, the CIRC promulgated the Provisions for the Establishment of Reinsurance Companies (Reinsurance Provisions), creating a legal regime for foreign investment in China’s reinsurance sector. This liberalization is consistent with China’s WTO commitment that all geographic or quantitative restrictions on reinsurance licenses issued to foreign insurers end as of the date of accession. The new provisions apply equally to foreign and Chinese reinsurance companies. A foreign-funded reinsurance company may be formed as an equity joint venture, WFOE or a branch of a foreign insurance company, subject to CIRC approval. Under the Reinsurance Provisions, reinsurance companies may be: (i) a general reinsurance company, offering life and non-life reinsurance; (ii) a life reinsurance company; or (iii) a non-life reinsurance company. Reinsurance companies may engage in inbound, outbound or international reinsurance services. Statutory reinsurance is not included within this list o
