JT&N’s April 2020 PRC Insurance News Alert

Welcome to the latest edition of JT&N’s PRC Insurance Highlights News Alert, reporting recent regulatory developments in the PRC insurance sector. We welcome your comments, questions and feedback. To contact us please email: jtninsurance@jtnfa.com
1、银保监会发布《关于强化人身保险精算监管有关事项的通知》CBIRC Issued the Circular on Matters Concerning Strengthening the Regulation of Life Insurance Actuarial Work
2020年2月21日，银保监会发布《关于强化人身保险精算监管有关事项的通知》，以完善人身保险监管指标体系。通知主要就以下三个方面做出规定：
On February 21, 2020, CBIRC published the Circular on Matters Concerning Strengthening the Regulation of Life Insurance Actuarial Work in order to improve the regulatory indicator system for life insurance.
1)强化法定责任准备金监管
通知规定了责任准备金覆盖率的计算公式，将责任准备金覆盖率纳入非现场监测指标体系，并与产品监管等监管措施挂钩。自2020年7月1日起，保险公司报送人身保险条款和保险费率审批或备案的，最近季度末责任准备金覆盖率不得低于100%。
Strengthening regulation of statutory reserves
The Circular sets forth the formula for calculating the statutory reserves coverage ratio, includes such ratio as part of the indicator system for off-site supervision, and links such ratio with regulatory measures on insurance products. Effective July 1, 2020, an insurance company will be required to have such ratio of no less than 100% as of the end of last quarter, if the company files life insurance policies and premium rates for approval or record filing.
2)规范分红险市场发展
通知明确了分红型人身保险演示利率上限，并将红利分配比例统一为70%。保险公司新开发的分红型人身保险产品应按照通知要求执行，在通知印发前已审批或备案的分红型人身保险产品说明书可以继续使用。自2020年7月1日起，不符合通知要求的分红型人身保险产品说明书不得继续使用。
Regulating dividend-paying insurance products
The Circular clarifies the interest rate ceiling for dividend-paying life insurance illustrations, and provides for a uniform dividend payout ratio of 70%. Insurance companies must comply with the Circular when developing such new products, but product descriptions already approved or filed before the issuance of the Circular can still be used. Effective July 1, 2020, product descriptions of such insurance products must no longer be used if they fail to comply with the Circular.
3)完善非现场监测机制
通知对《关于做好人身保险业有关数据报送工作的通知》中规定的季度负债业务信息表填报要求进行了调整，新增责任准备金覆盖率、万能险账户基本情况、投连险账户基本情况等，自2020年4月1日起执行。
Improving off-site supervisory mechanism
The Circular adjusts the quarterly reporting requirements concerning liability-side business data set forth in the Circular on Submission of Relevant Data of Life Insurance, and requires certain additional information such as the statutory reserves coverage ratio and basic information concerning policy accounts of universal insurance and investment-linked insurance, effective April 1, 2020.
2、银保监会发布《保险资产管理产品管理暂行办法》CBIRC Promulgated the Interim Administrative Measures for Insurance Asset Management Products
2020年3月25日，银保监会发布《保险资产管理产品管理暂行办法》。《暂行办法》是落实2018年4月央行、银保监会、证监会以及外管局联合下发的《关于规范金融机构资产管理业务的指导意见》（“资管新规”）的重要举措，并与银行、私募资管机构及其他金融机构的资管业务的监管规则统一标准。
On March 25, 2020, CBIRC published the Interim Administrative Measures for Insurance Asset Management Products. The Interim Measures are to implement the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions, which were issued jointly by the People’s Bank of China, CBIRC, China Securities Regulatory Commission and State Administration of Foreign Exchange in April 2018 and to reconcile the regulatory rules for insurance asset management with those for the asset management business of banks, private fund asset management institutions and other financial institutions.
1)资管原则
暂行办法禁止刚性兑付、实施穿透监管，包括向上穿透至最终投资者、向下穿透至底层资产。
Asset management principles
The Interim Measures prohibit insurance asset management institutions from guaranteeing fixed returns and apply the “look-through” approach to regulate the insurance asset management business, including look-through up to the ultimate investors and down to the underlying assets.
2)合格投资者
暂行办法明确了自然人可作为合格投资者购买保险资管产品，并进一步明确，接受金融监督管理部门监管的机构及其发行的资产管理产品以及基本养老金、社会保障基金、企业年金等养老基金等均可以作为合格投资者。
Qualified investors
The Interim Measures expressly allow individuals to be qualified to purchase insurance asset management products, and further clarify that qualified investors can include institutions supervised by financial regulatory authorities, asset management products offered by such institutions, basic pensions, social security funds, enterprise annuities and other pension funds.
3)投资顾问
《暂行办法》规定，保险资管机构可以聘请投资顾问，但投资顾问必须具有专业资质并受金融监督管理部门监管。投资顾问不能直接承担投资决策职责、不能直接执行投资指令、不得承诺保本保收益。
Investment advisors
The Interim Measures provide that insurance asset management institutions may engage investment advisors that possess relevant professional qualifications and are supervised by financial regulatory authorities. Investment advisors are prohibited from directly making investment decisions or directly executing investment orders or guaranteeing fixed returns.
4)代理销售机构
暂行办法在先前征求意见稿的基础上拓宽了代理销售机构的范围，首次规定金融机构以及银保监会认可的其他机构可以代理销售保险资管产品。
Sales agencies
The Interim Measures expand the scope of sales agencies and provide for the first time that financial institutions and such other institutions as approved by CBIRC can sell insurance asset management products on a commission basis.
5)产品发行及运作规则
暂行办法首次明确规定保险资管产品需以非公开形式发行。暂行办法遵循资管新规的分类标准，将保险资管产品分为固定收益类、权益类、商品及金融衍生品类、混合类，并确定了各类资管产品的投资资产比例限制。保险资管机构发行的保险资管产品需在银保监会认可的机构履行注册或登记手续，并在产品存续期内持续报送相关信息。
Issuance and operation of products
The Interim Measures make it clear for the first time that insurance asset management products can only be offered in a non-public manner. The Interim Measures divide insurance asset management products into four categories in accordance with the Guiding Opinions: fixed income products, equity products, commodity and financial derivative products, and mixed products, and set forth certain ratio limitations on investments in each of the categories. Insurance asset management institutions should register their insurance asset management products with the relevant institutions recognized by CBIRC and perform certain on-going reporting obligations during the lives of such products.
6)禁止行为
暂行办法禁止保险资管机构提供通道服务。暂行办法禁止多层嵌套，但法律、行政法规以及金融管理部门另有规定的除外。
Prohibited activities
The Interim Measures expressly prohibit insurance asset management institutions from providing channel services. The Interim Measures also prohibit multi-tier nesting, unless otherwise provided by laws, administration regulations, and financial regulatory authorities.
7)信息披露、报告及内控制度
暂行办法规定保险资产管理机构应当至少每季度向投资者披露产品净值和其他重要信息。暂行办法还规定，保险资管机构应当建立风险责任人和风险准备金制度，并加强机构内外部审计监督、规范关联交易等。
Information disclosure and internal control
The Interim Measures provide that insurance asset management institutions should disclose the net value and other significant information to investors at least on a quarterly basis. Insurance asset management institutions should establish rules and systems for risk responsible person and risk reserves, and enhance internal and external audit supervision and standardize affiliated transactions.
3、银保监会发布《银行业保险业消费投诉处理管理办法》
CBIRC Promulgated the Administrative Measures for the Handling of Consumer Complaints in the Banking and Insurance Sectors
2020年1月14日，银保监会发布《银行业保险业消费投诉处理管理办法》，自2020年3月1日起实行, 适用于各银行保险机构，包括银行业金融机构、保险机构、保险中介机构以及银行保险监督管理机构负责监管的其他主体。
On January 14, 2020, CBIRC promulgated the Administrative Measures for the Handling of Consumer Complaints in the Banking and Insurance Sectors, effective on March 1, 2020 and applicable to all banking or insurance institutions, including banking financial institutions, insurance institutions, insurance intermediaries and other entities regulated by CBIRC.
1)完善投诉处理工作制度
银行保险机构应建立健全消费投诉统计分析、溯源整改、信息披露、责任追究、消费投诉处理登记、档案管理和投诉处理考核评价制度。银行保险机构还应制定重大消费投诉处理应急预案。重大消费投诉是指重大自然灾害、安全事故、公共卫生事件等引发的消费投诉，20名以上投诉人采取面谈方式提出共同消费投诉的群体性投诉或银保监会及其派出机构认定的其他重大消费投诉。
Improve complaint handling rules
Banking and insurance institutions should establish and improve their rules and systems concerning consumer complaints statistics and analysis, source tracing and rectification, information disclosure, responsibility and accountability, complaints handling documentation, archive management and complaint handling evaluation. Banking and insurance institutions should establish contingency plans for major consumer complaints, including (i) consumer complaints arising out of major natural disasters, safety accidents, public health incidents, etc.; (ii) complaints raised by groups of 20 or more consumers via face-to-face interview; or (iii) other material consumer complaints recognized by CBIRC or its local bureaus.
2)加强人力物力保证
银行保险机构应指定高级管理人员或者机构负责人分管本单位消费投诉处理工作，设立或者指定本单位消费投诉处理工作的管理部门和岗位，合理配备工作人员。
Enhance human and other resource support
Banking and insurance institutions should designate a senior officer or person in charge of the institution to lead complaint handling, and establish or designate internal departments and positions for complaint handling, which should be reasonably staffed.
3)加强对第三方机构合作业务消费投诉的管理
因合作销售产品或者提供服务而产生消费纠纷的，受监管机构应当要求相关第三方机构配合处理消费投诉，对消费投诉事项进行核实，及时提供相关情况，促进消费投诉顺利解决。受监管机构应当将第三方机构对消费投诉处理工作的配合情况纳入合作第三方机构的准入退出评估机制。
Enhance complaint handling for third-party business cooperation
If a consumer complaint arises out of sales of products or provision of services in cooperation with third parties, the banking or insurance institution should require the third party to cooperate with complaint handling, verify facts, provide information promptly, and facilitate complaint resolution. The third party’s cooperation with complaint handling should be factored into the evaluation mechanism for access and exit of third party cooperation institutions.
4)报告
银行保险机构应当报告本单位消费投诉处理工作相关制度、消费投诉管理工作责任人名单，以及上述事项的变动情况；应当报告本单位消费投诉数据、消费投诉处理工作情况，并对报送的数据、文件、资料的真实性、完整性、准确性负责。
Reporting
Banking and insurance institutions should report their consumer complaint handling work to CBIRC with respect to the relevant policies, responsible persons, changes thereto, and complaint related data, status and results of complaint handling, and should be accountable for the authenticity, completeness and accuracy of the reported data, documents and materials.
5)公布投诉渠道
银行保险机构应当在官方网站、移动客户端、营业场所或者办公场所醒目位置公布本单位的投诉电话、通讯地址等投诉渠道信息和消费投诉处理流程，开通互联网投诉渠道的，应当公布本单位接收消费投诉的电子邮箱、网址等。在产品或者服务合约中，受监管机构应当提供投诉电话或者其他投诉渠道信息。
Publicly disclose complaint channels
Banking and insurance institutions should publicly and conspicuously disclose their telephone numbers, contact addresses and other complaint channel information and their complaint handling procedures on their official websites, mobile applications, business premises and, if online complaint channels are available, their email addresses and webpages, etc. They should also provide their telephone numbers and other complaint channel information in their product or service contracts.
6)投诉处理流程和时间
对于事实清楚、争议情况简单的消费投诉，受监管机构应当自收到消费投诉之日起15日内作出处理决定并告知投诉人，情况复杂的可以延长至30日；情况特别复杂或者有其他特殊原因的，经其上级机构或者总行、总公司高级管理人员审批并告知投诉人，可以再延长30日。投诉人可以在30日内向其上级机构申请核查。核查机构应当在30日内作出核查决定并告知投诉人。
Complaint handling procedures and timeframes
A banking or insurance institution should make a decision and notify the complainant within 15 days if the circumstances are clear and simple, or within an additional 15 days if the circumstances are complicated, or, if the circumstances are very complicated or there are other special reasons, within yet another 30 days if so approved by a senior officer of the upper-level institution or headquarters of the institution. A complainant can request the upper-level institution to review the decision within 30 days, and the upper-level institution should make a decision and notify the complainant within 30 days.
7)罚则
受监管机构违反办法规定的，监管机构可以采取责令改正、监督管理谈话乃至采取罚款、限制其业务范围、责令停止接受新业务等处罚措施。
Penalties
If a banking or insurance institution fails to comply with the measures, CBIRC can issue a rectification order, conduct regulatory talks, impose fines, impose restrictions on its business scope, or order it to cease to accept new business, among others.
4、银保监会办公厅发布《关于进一步做好银行业保险业反洗钱和反恐怖融资工作的通知》CBIRC General Office Issued the Circular re Further Improving Anti-money Laundering and Counter Terrorism Financing Work in Banking and Insurance Sectors
2019年12月30日，银保监会办公厅发布《进一步做好银行业保险业反洗钱和反恐怖融资工作的通知》。通知自发布当日生效，《关于加强保险业反洗钱工作信息报送的通知》同时废止。
On December 30, 2019, CBIRC General Office issued the Circular re Further Improving Anti-money Laundering (“AML”) and Counter Terrorism Financing (“CTF”) Work in Banking and Insurance Sectors, which took effect immediately and superseded the Notice on Strengthening Submission of Information of Insurance Anti-money Laundering Work.
1)准入审核
银保监会应当做好银行保险机构市场准入环节的反洗钱和反恐怖融资审查工作，对于不符合条件的，不予批准。
Access review
When reviewing market access applications in the banking and insurance sectors, CBIRC should closely review AML and CTF related work, and should reject the applications if the relevant requirements are not met.
2)定期报告
银行保险机构应当于每年度结束后20个工作日内向银保监报送上年度反洗钱和反恐怖融资年度报告。
Periodic reports
Banking and insurance institutions should submit an annual report to CBIRC on the AML and CTF work for the previous year within 20 business days after the end of each year.
3)临时报告
银行保险机构在下列情况发生时应及时向银保监会提交临时报告：（一）主要反洗钱和反恐怖融资内部控制制度修订；（二）反洗钱和反恐怖融资工作机构和岗位人员调整、联系方式变更；（三）涉及本机构反洗钱和反恐怖融资工作的重大风险事项；（四）洗钱风险自评估报告或其他相关风险分析材料；（五）境外分支机构和附属机构受到当地监管部门或者司法部门与反洗钱和反恐怖融资相关的现场检查、行政处罚、刑事调查或者发生其他重大风险事项；（六）其他需要报告的反洗钱和反恐怖融资工作情况。
Interim reports
A banking or insurance institution should promptly submit an interim report to CBIRC upon occurrence of the following events: (i) amendments to its principal internal control rules concerning AML and CTF; (ii) changes to AML and CTF departments or personnel or their contact information; (iii) material risk events related to AML and CTF; (iv) money laundering risk self-assessment report or other related risk analysis materials; (v) on-site inspections, administrative penalties, criminal investigations or other material risk events involving its overseas branches; and (vi) other AML and CTF related work that should be reported.
5、银保监会发布《关于进一步加强和改进财产保险公司产品监管有关问题的通知》CBIRC Issued the Circular on Issues Concerning Further Strengthening and Improving Supervision of Products of Property Insurance Companies
银保监会办公厅于2020年2月19日发布了《关于进一步加强和改进财产保险公司产品监管有关问题的通知》，通知于2020年3月1日生效。
On February 19, 2020, CBIRC issued the Circular on Issues Concerning Further Strengthening and Improving Supervision of Products of Property Insurance Companies (the “Circular”) , which took effect on March 1, 2020.
1)调整产品备案审批范围及监管方式
通知规定，使用示范产品的机动车辆商业保险和1年期以上信用保险和保证保险产品仅需备案，不再需要审批。通知还规定，使用示范产品的机动车辆商业保险、中央财政保费补贴型农业保险产品由银保监会负责备案并监管，其他由属地银保监局负责备案并监管。
Product approval and filing related changes
The Circular provides that motor vehicle commercial insurance products adopting model clauses and those credit and guarantee insurance products that have a term of more than one year require a record filing only, no longer triggering an approval requirement. The Circular also provides that motor vehicle commercial insurance products adopting model clauses and agricultural insurance products receiving premium subsidies from the central government are subject to record filing with and regulation by CBIRC headquarters, and the other products are subject to record filing with and regulation by local bureaus of CBIRC.
2)强化产品监管
通知要求将个人类产品和风险较高产品作为重点领域实施重点监管。通知强化了产品退出机制，即对损害社会公众利益和保险消费者合法权益以及危及公司偿付能力和财务稳健等问题的产品严格按照有关规定责令停止使用、限期修改，情节严重的，在一定期限内禁止申报新产品。
Strengthening product supervision
The Circular requires more focused supervision of personal insurance products and insurance products with relatively higher risks. The Circular strengthens the product exit mechanisms, requiring the cessation of use or a rectification within a prescribed time period in strict accordance with relevant rules for those products that harm the public interest or the legitimate rights and interests of insurance consumers, or endanger the company’s solvency and financial stability, etc. If the circumstances are serious, the company may be prohibited from applying for new products within a prescribed time priod.
3)规范产品备案流程
通知规定，除银保监会总部监管产品以外，使用范围超过单个省（自治区、直辖市、计划单列市）的财产保险公司保险产品，由总公司向其营业场所所在地银保监局备案；仅在某一省（自治区、直辖市、计划单列市）使用的，向产品使用地银保监局备案。
Standardizing product record-filing procedures
The Circular provides that except for those products supervised by CBIRC headquarters directly, those insurance products of property insurance companies that are offered across multiple provinces (autonomous regions, municipalities directly under the central government, and cities specifically designated in state planning) should be filed by the company’s headquarters with the local bureau of CBIRC where the company’s business premises are located; those insurance products that are merely offered within one such region the head office should make a record-filing with the local bureau of CBIRC where the products will be offered.
6、银保监会发布《进一步规范健康保障委托管理业务有关事项的通知》CBIRC Issued the Circular on Matters Concerning Further Standardizing Entrusted Management Services for Health Protection
2020年2月11日，银保监会发布了《进一步规范健康保障委托管理业务有关事项的通知》，通知于当日生效，取代了2008年6月2日发布的《关于健康保障委托管理业务有关事项的通知》（“原通知”）。通知规定，保险公司开展健康保障委托管理业务，应符合《健康保险管理办法》规定的经营健康保险的条件，并在开办地区设有分支机构或服务合作机构。
On February 11, 2020, CBIRC issued the Circular on Matters Concerning Further Standardizing Entrusted Management Services for Health Protection (the “Circular”), which took effect on the same date and superseded the old Circular Concerning Certain Matters Relating to Entrusted Management Services for Health Security issued on June 2, 2008 (the “Old Circular”). The Circular provides that in order to conduct entrusted management services for health protection, insurance companies should meet the various operational requirements set forth in the Administrative Measures for Health Insurance and should have branches or service cooperation institutions in those regions where such services are conducted.
1)增加委托事项
通知所称健康保障委托管理业务是指保险公司接受政府部门、企事业单位、社会团体等团体客户的委托，为其提供健康保障的方案设计、咨询建议、医疗服务调查、医疗费用审核和支付以及原通知中未予纳入的健康管理、疾病审核和费用支付、失能收入损失审核和费用支付、护理审核和费用支付等经办管理服务。
Expanded scope of entrusted management
Entrusted management services for health protection are defined under the Circular to refer to health protection plan design, consulting and advice, medical service survey, medical expense review and payment, and certain new services, such as health management, disease review and expense payment, disability related loss-of-income review and expense payment, nursing related review and expense payment, that were not covered by the Old Circular, in each case based on entrustment by government authorities, enterprises, public institutions, social organizations and other group customers.
2)取消备案要求
原通知要求由总公司开发健康保障委托管理业务产品，并在不迟于产品销售后7日内向银保监备案。通知取消了该备案要求，保险公司仅需根据银保监会的规定审慎开展业务，依法签订合同，承担权利、义务和责任。
Record filing requirement abolished
The Old Circular provided that the products for entrusted management services for health protection should be developed by the insurance company headquarters and should be filed with CBIRC within 7 days after commencement of sales of such products. The Circular abolished such filing requirement, and insurance companies should conduct such services prudently in accordance with CBIRC rules, sign contracts in accordance with law, and enjoy or assume the rights, obligations and liabilities accoidngly.
3)取消委托投资功能，规范管理费用
委托人将委托资金划归保险公司管理的，保险公司应当设立单独账户管理资金，且不得对委托资金提供各种形式的增值保证。保险公司收取的管理费用应当覆盖委托管理业务的各项成本。管理费用可以根据实际管理成本进行浮动，但浮动办法应当在委托管理合同中列明。
Entrusted investment function abolished and management fees standardized
Insurance companies should set up a separate account to manage the funds entrusted to them for management, and should not provide any form of guarantee for their value appreciation. Management fees should cover all the costs of entrusted management services. Management fees may vary based on actual management costs in accordance with the terms of the entrusted management contract.
4)准备金及偿付能力
保险公司开展健康保障委托管理业务，不需计提保险责任准备金，不纳入保险公司偿付能力监管范围。
Reserves and solvency
Insurance companies are not required to set aside insurance liability reserves for entrusted management services for health protection, nor will such services be covered by the solvency regulation.
5)禁止行为
通知明确禁止下列行为：（一）以低于实际管理成本的管理费用进行不正当竞争；（二）通过虚构材料或者超出健康保障委托范围等方式支付受托资金，为委托人套取账户资金提供便利；（三）通过健康保障委托管理业务为他人提供违法便利；（四）将健康保障委托管理业务异化为健康保险业务；(五) 其他违法行为。
Prohibited practices
The Circular expressly prohibits the following practices: (i) engaging in unfair competition by charging management fees at rates lower than costs; (ii) facilitating swindling of the entrusted funds by paying the funds based on fabricated documents or outside the scope of entrusted management services for health protection; (iii) providing illegal facilitation to others through entrusted management services for health protection; (iv) having entrusted management services for health protection distorted into health insurance business; and (v) other illegal practices.
6) 半年度报告
保险公司开展健康保障委托管理业务的，应于每年1月31日和7月31日前向银保监会及其派出机构报送上年度和本年度上半年经营情况报告。经营情况报告至少应当包括业务开展情况、依法合规情况、风险管理情况等内容。
Semi-annual reports
When conducting entrusted management services for health protection, insurance companies should submit half-year and full-year reports to CBIRC and its local bureaus by July 31 and January 31, respectively, of each year. The operation reports should at least cover the operational status of services, status of legality and compliance, and status of risk management.