Circular of the General Office of the China Banking and Insurance Regulatory Commission on Issuing the Measures for the Supervision of Accidental Injury Insurance Business
Circular of the General Office of the China Banking and Insurance Regulatory Commission on Issuing the Measures for the Supervision of Accidental Injury Insurance Business
Circular of the General Office of the China Banking and Insurance Regulatory Commission on Issuing the Measures for the Supervision of Accidental Injury Insurance Business
Yin Bao Jian Ban Fa [2021] No.106
October 13, 2021
Local offices of the China Banking and Insurance Regulatory Commission and insurance companies,
In order to further standardize the operation of accidental injury insurance and promote the high-quality development of accidental injury insurance business, upon approval by the China Banking and Insurance Regulatory Commission (hereinafter referred to as the "CBIRC"), the Measures for the Supervision of Accidental Injury Insurance Business are hereby issued to you for compliance and implementation.
Measures for the Supervision of Accidental Injury Insurance Business
Chapter I General Provisions
Article 1 The Measures for the Supervision of Accidental Injury Insurance Business (hereinafter referred to as the "Measures") are formulated in accordance with the Insurance Law of the People's Republic of China and other laws and administrative regulations to promote the high-quality development of accidental injury insurance, standardize the operation of accidental injury insurance, and protect the legitimate rights and interests of the parties involved in accidental injury insurance activities.
Article 2 For the purpose of the Measures, accidental injury insurance (hereinafter referred to as "accidental insurance") is the personal insurance where the insurance benefits are paid on the condition that the insured is dead or disabled due to an accidental injury, or any other accident stipulated in the insurance contract occurs; "insurance companies" refer to personal insurance companies and property insurance companies established in accordance with the law.
Article 3 When carrying out accidental insurance business, an insurance company shall strictly abide by laws, administrative regulations, and regulatory provisions, follow the insurance principles, and accurately grasp the overall requirements for returning to the source and preventing risks, and shall not damage public interests and the legitimate rights and interests of insurance consumers.
Chapter II Product Management
Article 4 When determining premiums, an insurance company shall conform to the general actuarial principles and adopt fair and reasonable pricing assumptions.
1. When determining premiums of accidental insurance with a duration of not less than one year, the insurance company shall determine the assumed interest rate in accordance with the principle of prudence based on its experience in historical returns on investment, reasonable expectations for the future, and product characteristics.
2. The insurance company shall determine the assumed incidence rate based on its actual experience data, the table of experiential incidence rates of accidental injuries published publicly by the industry, and other data in accordance with the principle of prudence.
3. The annual assumed additional premium rate for each policy year shall be set by the insurance company itself, provided that the average additional premium rate shall not exceed the upper limit specified in the table below. The average additional premium rate refers to the proportion of the sum of the actuarial present value of the assumed additional premiums to the sum of the actuarial present value of gross premiums of a policy for each period.
Article 5 The minimum cash value of an accidental insurance policy with a duration of one year or less shall be determined according to the unexpired net premium method: the minimum cash value = net premium × (1 - days since the insurance contract took effect/days of the duration of the insurance contract), where a period of less than one day shall be calculated as one day.
The minimum cash value of an accidental insurance policy with a duration of more than one year shall be calculated in accordance with the relevant requirements of the Actuarial Provisions for General Personal Insurance.
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Yin Bao Jian Ban Fa [2021] No.106
October 13, 2021
Local offices of the China Banking and Insurance Regulatory Commission and insurance companies,
In order to further standardize the operation of accidental injury insurance and promote the high-quality development of accidental injury insurance business, upon approval by the China Banking and Insurance Regulatory Commission (hereinafter referred to as the "CBIRC"), the Measures for the Supervision of Accidental Injury Insurance Business are hereby issued to you for compliance and implementation.
Measures for the Supervision of Accidental Injury Insurance Business
Chapter I General Provisions
Article 1 The Measures for the Supervision of Accidental Injury Insurance Business (hereinafter referred to as the "Measures") are formulated in accordance with the Insurance Law of the People's Republic of China and other laws and administrative regulations to promote the high-quality development of accidental injury insurance, standardize the operation of accidental injury insurance, and protect the legitimate rights and interests of the parties involved in accidental injury insurance activities.
Article 2 For the purpose of the Measures, accidental injury insurance (hereinafter referred to as "accidental insurance") is the personal insurance where the insurance benefits are paid on the condition that the insured is dead or disabled due to an accidental injury, or any other accident stipulated in the insurance contract occurs; "insurance companies" refer to personal insurance companies and property insurance companies established in accordance with the law.
Article 3 When carrying out accidental insurance business, an insurance company shall strictly abide by laws, administrative regulations, and regulatory provisions, follow the insurance principles, and accurately grasp the overall requirements for returning to the source and preventing risks, and shall not damage public interests and the legitimate rights and interests of insurance consumers.
Chapter II Product Management
Article 4 When determining premiums, an insurance company shall conform to the general actuarial principles and adopt fair and reasonable pricing assumptions.
1. When determining premiums of accidental insurance with a duration of not less than one year, the insurance company shall determine the assumed interest rate in accordance with the principle of prudence based on its experience in historical returns on investment, reasonable expectations for the future, and product characteristics.
2. The insurance company shall determine the assumed incidence rate based on its actual experience data, the table of experiential incidence rates of accidental injuries published publicly by the industry, and other data in accordance with the principle of prudence.
3. The annual assumed additional premium rate for each policy year shall be set by the insurance company itself, provided that the average additional premium rate shall not exceed the upper limit specified in the table below. The average additional premium rate refers to the proportion of the sum of the actuarial present value of the assumed additional premiums to the sum of the actuarial present value of gross premiums of a policy for each period.
| Business type | Accidental insurance with a duration of one year or less | Accidental insurance with a duration of more than one year | |
| On a periodical basis | In a lump sum | ||
| Individual | 35% | 35% | 18% |
| Group | 25% | 15% | 8% |
Article 5 The minimum cash value of an accidental insurance policy with a duration of one year or less shall be determined according to the unexpired net premium method: the minimum cash value = net premium × (1 - days since the insurance contract took effect/days of the duration of the insurance contract), where a period of less than one day shall be calculated as one day.
The minimum cash value of an accidental insurance policy with a duration of more than one year shall be calculated in accordance with the relevant requirements of the Actuarial Provisions for General Personal Insurance.
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