Recently, the National Financial Regulatory Administration (NFRA) has issued the Circular on Matters Concerning Commercial Banks Acting as Agents for Insurance Business (the "Circular").
The Circular stipulates that, commercial banks, acting as agents for internet insurance, telemarketing insurance, and other insurance business, will not be subject to restrictions on the number of insurance companies they can collaborate with across their branches, sub-branches, and outlets at all levels. Insurance companies must ensure that they have offline service capabilities within the collaborative areas. Furthermore, the Circular specifies that collaboration on insurance agency business between insurance companies and commercial banks requires written agency agreements signed by their legal entities. If an agreement needs to be signed by a primary branch, that branch must first obtain prior written authorization from its legal entity and promptly file it with the legal entity after signing. Additionally, the commission rate specified in the agency agreement should not exceed the commission rate filed by the insurance company legal entity for its products.