Circular of the National Financial Regulatory Administration on Issuing the Administrative Measures for Capital Margin of Insurance Companies
Circular of the National Financial Regulatory Administration on Issuing the Administrative Measures for Capital Margin of Insurance Companies
Circular of the National Financial Regulatory Administration on Issuing the Administrative Measures for Capital Margin of Insurance Companies
Jin Gui [2025] No. 18
August 29, 2025
To insurance groups (holding) companies and insurance companies,
In order to strengthen the regulation of capital margins of insurance companies, protect the interests of policyholders, and maintain the stable and sound development of the insurance market, the National Financial Regulatory Administration has revised the Administrative Measures for Capital Margin of Insurance Companies. The revised Administrative Measures for Capital Margin of Insurance Companies are hereby issued to you for your compliance and implementation.
Administrative Measures for Capital Margin of Insurance Companies
Article 1 These Measures are formulated in accordance with the Insurance Law of the People's Republic of China (the “Insurance Law”) to strengthen the management of capital margins of insurance companies and maintain the stable and sound development of the insurance market.
Article 2 For the purpose of these Measures, “insurance companies” refer to commercial insurance companies established with the approval of the insurance regulatory authority under the State Council and duly registered in accordance with the law.
Article 3 For the purpose of these Measures, “capital margin” refers to funds set aside by an insurance company in accordance with the provisions of the Insurance Law, equivalent to 20% of its total registered capital after its establishment, which shall not be used except for the settlement of debts in the course of liquidation of the insurance company.
Article 4 The National Financial Regulatory Administration (“NFRA”) and its local offices shall supervise and regulate the capital margins of insurance companies in accordance with the law. The deposit and disposition of capital margins by insurance companies shall comply with the provisions of these Measures.
Article 5 Insurance companies shall follow the principles of “adequacy, safety, and stability” in depositing their capital margins.
Article 6 An insurance company shall select two or more commercial banks as depository banks for its capital margins.
......
Jin Gui [2025] No. 18
August 29, 2025
To insurance groups (holding) companies and insurance companies,
In order to strengthen the regulation of capital margins of insurance companies, protect the interests of policyholders, and maintain the stable and sound development of the insurance market, the National Financial Regulatory Administration has revised the Administrative Measures for Capital Margin of Insurance Companies. The revised Administrative Measures for Capital Margin of Insurance Companies are hereby issued to you for your compliance and implementation.
Administrative Measures for Capital Margin of Insurance Companies
Article 1 These Measures are formulated in accordance with the Insurance Law of the People's Republic of China (the “Insurance Law”) to strengthen the management of capital margins of insurance companies and maintain the stable and sound development of the insurance market.
Article 2 For the purpose of these Measures, “insurance companies” refer to commercial insurance companies established with the approval of the insurance regulatory authority under the State Council and duly registered in accordance with the law.
Article 3 For the purpose of these Measures, “capital margin” refers to funds set aside by an insurance company in accordance with the provisions of the Insurance Law, equivalent to 20% of its total registered capital after its establishment, which shall not be used except for the settlement of debts in the course of liquidation of the insurance company.
Article 4 The National Financial Regulatory Administration (“NFRA”) and its local offices shall supervise and regulate the capital margins of insurance companies in accordance with the law. The deposit and disposition of capital margins by insurance companies shall comply with the provisions of these Measures.
Article 5 Insurance companies shall follow the principles of “adequacy, safety, and stability” in depositing their capital margins.
Article 6 An insurance company shall select two or more commercial banks as depository banks for its capital margins.
......