Featured Product

    CIRC Notice on Interim Measures for Supervision of Credit Insurance

    July 20, 2017

    CIRC issued Notice 180/2017 on interim measures for the supervision of credit insurance. These measures are intended to further standardize the credit guarantee insurance business behavior, strengthen the credit insurance business supervision, to prevent systemic financial risks, and promote sustained and healthy development of credit insurance business.

    The term "credit guarantee insurance" refers to insurance with credit risk as the subject of insurance, which is divided into credit insurance (except export credit insurance) and guarantee insurance. Article 5 specifies that the insurance company that operates the credit insurance business shall have a core solvency rate of not less than 75% in the previous quarter and its comprehensive solvency adequacy ratio shall not be less than 150%. As per Article 6, the balance of the retained and written duties of the insured business insured by the insurance company shall not exceed 10 times of the net assets at the end of the previous quarter. The balance of retained liability for a single performance obligor and its affiliates shall not exceed 5% of the net assets at the end of the previous quarter and shall not exceed USD 500 million. More than the remaining part of the balance of responsibility requirements, should be reinsurance; not reinsured, not underwriting.

     

    CIRC also specifies (in Article 28) that an insurance company operating a credit insurance business shall report to the CIRC on the business operation of the previous year before the end of April each year, including but not limited to the construction of internal risk management system and the situation of professional personnel, along with business operation. Business operations reporting covers basic information, including the regional scope of the business, the size of the insurance, the amount of insurance, the amount of compensation, the amount of money that has been recovered, the amount that has not been recovered, and the actual coverage rate level. These measures (Article 33) shall enter into force on the date of issuance and shall be implemented for a period of three years.

     

    Related Link: Notice 180/2017 (in Chinese) 

    Keywords: Asia Pacific, China, Insurance, Credit Guarantee Insurance, Credit Risk, CIRC

    Related Articles
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    IAIS Publishes Application Paper on Recovery Planning

    IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper.

    November 18, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of November Meeting of RCG for MENA Region

    FSB published a summary of the November meeting of the Regional Consultative Group (RCG) for Middle East and North Africa (MENA).

    November 17, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to eight questions that relate to the Bank Resolution and Recovery Directive (BRRD) and the Capital Requirements Regulation and Directive (CRR and CRD).

    November 15, 2019 WebPage Regulatory News
    News

    FASB Delays Effective Dates for CECL, Leases, and Hedging Standards

    FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

    November 15, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on Securitization Regulation in November 2019

    ESMA updated questions and answers (Q&A) on the Securitization Regulation (Regulation 2017/2402).

    November 15, 2019 WebPage Regulatory News
    News

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020.

    November 15, 2019 WebPage Regulatory News
    News

    FSI Examines Use of Red Team Testing to Enhance Cyber Resilience

    The Financial Stability Institute (FSI) of BIS published a paper that examines the contribution of red team testing frameworks toward enhancing cyber resilience.

    November 15, 2019 WebPage Regulatory News
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4164