Administrative Measures for the Reserves for Non-life Insurance Business of Insurance Companies
Administrative Measures for the Reserves for Non-life Insurance Business of Insurance Companies
Administrative Measures for the Reserves for Non-life Insurance Business of Insurance Companies
Order of the China Banking and Insurance Regulatory Commission [2021] No.11
October 15, 2021
Administrative Measures for the Reserves for Non-life Insurance Business of Insurance Companies, which were deliberated and approved by the China Banking and Insurance Regulatory Commission (the "CBIRC") at the fifth executive meeting in 2021 on May 20, 2021, are hereby announced and will come into force on December 1, 2021.
Guo Shuqing, Chairman
Administrative Measures for the Reserves for Non-life Insurance Business of Insurance Companies
Chapter I General Provisions
Article 1 The Measures are hereby formulated in accordance with the Insurance Law of the People's Republic of China (hereinafter referred to as the "Measures") and other laws and administrative measures for the purposes of strengthening the supervision and administration of the reserves for non-life insurance business of insurance companies, promoting the sound and stable business operations as well as consolidating the basis for measuring solvency and protecting the interests of the insured.
Article 2 For the purpose of the Measures, the term "non-life insurance business" refers to insurance business except for life insurance business, including the business of property loss insurance, liability insurance, credit insurance, guarantee insurance, short-term health insurance and accident insurance as well as the reinsurance business of the aforesaid business.
Article 3 For the purpose of the Measures, the term "insurance companies" refers to insurance companies lawfully established within the territory of the People's Republic of China to operate the aforementioned non-life insurance business, including property insurance companies, life insurance companies and reinsurance companies.
Article 4 An insurance company shall establish and improve an internal control system for reserve management, and clarify the division of responsibilities and work processes. To evaluate the various reserves, an insurance company shall, in accordance with the provisions of the CBIRC, follow the non-life actuarial theory and approaches, remain objective and cautious, and adequately and reasonably withdraw and carry forward reserves.
Article 5 The CBIRC and its local offices shall supervise the reserves for the non-life insurance business of insurance companies in accordance with the law.
Chapter II Types and Evaluation Methods of Reserves
Article 6 The reserves for non-life insurance business of insurance companies include undue liability reserves and reserves for outstanding losses.
Article 7 The term "undue liability reserves" refers to the reserves that are withdrawn for the undue insurance liabilities that have not been terminated on the reserve evaluation date, including the unearned premium reserves and the premium inadequacy reserves.
Article 8 Unearned premium reserves refer to reserves made on the basis of the unexpired part of premium income, with the unexpired part of the policy acquisition cost associated with the acquisition of premium income deducted.
Article 9 Unearned premium reserves shall be determined through any of the following methods:
1.
......
Order of the China Banking and Insurance Regulatory Commission [2021] No.11
October 15, 2021
Administrative Measures for the Reserves for Non-life Insurance Business of Insurance Companies, which were deliberated and approved by the China Banking and Insurance Regulatory Commission (the "CBIRC") at the fifth executive meeting in 2021 on May 20, 2021, are hereby announced and will come into force on December 1, 2021.
Guo Shuqing, Chairman
Administrative Measures for the Reserves for Non-life Insurance Business of Insurance Companies
Chapter I General Provisions
Article 1 The Measures are hereby formulated in accordance with the Insurance Law of the People's Republic of China (hereinafter referred to as the "Measures") and other laws and administrative measures for the purposes of strengthening the supervision and administration of the reserves for non-life insurance business of insurance companies, promoting the sound and stable business operations as well as consolidating the basis for measuring solvency and protecting the interests of the insured.
Article 2 For the purpose of the Measures, the term "non-life insurance business" refers to insurance business except for life insurance business, including the business of property loss insurance, liability insurance, credit insurance, guarantee insurance, short-term health insurance and accident insurance as well as the reinsurance business of the aforesaid business.
Article 3 For the purpose of the Measures, the term "insurance companies" refers to insurance companies lawfully established within the territory of the People's Republic of China to operate the aforementioned non-life insurance business, including property insurance companies, life insurance companies and reinsurance companies.
Article 4 An insurance company shall establish and improve an internal control system for reserve management, and clarify the division of responsibilities and work processes. To evaluate the various reserves, an insurance company shall, in accordance with the provisions of the CBIRC, follow the non-life actuarial theory and approaches, remain objective and cautious, and adequately and reasonably withdraw and carry forward reserves.
Article 5 The CBIRC and its local offices shall supervise the reserves for the non-life insurance business of insurance companies in accordance with the law.
Chapter II Types and Evaluation Methods of Reserves
Article 6 The reserves for non-life insurance business of insurance companies include undue liability reserves and reserves for outstanding losses.
Article 7 The term "undue liability reserves" refers to the reserves that are withdrawn for the undue insurance liabilities that have not been terminated on the reserve evaluation date, including the unearned premium reserves and the premium inadequacy reserves.
Article 8 Unearned premium reserves refer to reserves made on the basis of the unexpired part of premium income, with the unexpired part of the policy acquisition cost associated with the acquisition of premium income deducted.
Article 9 Unearned premium reserves shall be determined through any of the following methods:
1.
......