Publikation
Die Kunst des Streitens
Mit unserem Newsletter möchten wir Ihnen praktische Hinweise und prägnante Analysen der wichtigsten Rechtsprechung und jüngsten Entwicklungen im Bereich der Streitbeilegung an die Hand geben.
China Foreign Investment: Expert Q&A Series – Insurance Sector
Global | Publikation | September 2019
The spotlight for this update is on the insurance sector
The first round of liberalisation policies in respect of China’s insurance sector were announced at the Boao Forum for Asia Annual Conference in 2018. Since then, China has continued to implement legislation to liberalise foreign investment in its insurance industry. The latest round of legislative developments have come into effect and liberalisation of foreign investment in the life insurance sector has been brought forward to 2020, signaling the Chinese Government’s commitment to attract foreign investment into China.
Here is a summary of the key foreign investment requirements that now apply to the insurance sector in China:
| Insurers | Professional insurance agents | Insurance brokers | Insurance asset managers | |
|---|---|---|---|---|
| Is there any foreign shareholding restriction? |
No – up to 100% shareholding ownership is permitted
Yes – currently limited to a maximum of 51% but this restriction will be lifted and up to 100% shareholding will be permitted from 2020 |
No – up to 100% shareholding ownership is permitted | No – up to 100% shareholding ownership is permitted | Yes – currently limited to a maximum of 25% but this restriction will soon be lifted and up to 100% shareholding will be permitted |
| Who can be a foreign shareholder? |
It is no longer necessary for foreign investors to have operated an insurance business for at least 30 years. In addition, regulatory decisions have also been made to remove the requirement for foreign investors to have had an insurance representative office in China for at least two years1 |
Foreign specialized insurance agency institutions that have engaged in insurance agency business for at least 3 years (subject to non-hard core qualification requirements) It is no longer necessary to follow the strict qualification requirements set out under the CEPA2 regime so as to wholly own a professional insurance agent |
Foreign specialised insurance brokerage institutions (subject to non-hard core qualification requirements) Regulatory decisions have been made to remove the qualification requirement for foreign investors to have minimum total assets of US$200 million by the end of the last fiscal year. The following qualification requirements for foreign investors will be removed soon:
|
Foreign insurance group company or insurance company (acting as the promoter) satisfying the following qualification requirements:
|
|
What is the minimum capital contribution? |
|
|
|
|
| Is approval from the China Banking and Insurance Regulatory Commission (CBIRC) required? |
Yes – prior approval from CBIRC is required
|
Yes – approval from CBIRC is required after registration of the company | Yes – approval from CBIRC is required after registration of the company |
Yes – prior approval from CBIRC is required
|
| Is the foreign investor able establish a branch in China? | Yes – with prior approval from CBIRC | Yes – after notification to CBIRC | Yes – after notification to CBIRC | Yes – with prior approval from CBIRC |
What does this mean for your business?
- More foreign investors (including financial intuitions that are non-insurance companies) will be able to invest in insurance companies in China.
- Qualification requirements imposed on foreign investors will be largely removed or liberalised, so as to expedite the speed of opening up of foreign investment in the Chinese insurance sector.
- From 2020, qualified foreign investors will be allowed to wholly own life insurance companies in China.
- Foreign investors will soon also be allowed to wholly own insurance asset managers, allowing them to tap into the asset management business in China.
- Foreign insurance group companies will also be permitted to set up insurance institutions in China.
Aktuelle Publikationen
Publikation
Auswirkungen der EU-Sanktionen im hypothetischen Szenario einer US-Sanktionslockerung
Seit Beginn des russischen Angriffskriegs gegen die Ukraine im Februar 2022 haben westliche Staaten umfassende Sanktionen gegen Russland verhängt, wobei die EU ihr Sanktionsregime konsequent fortsetzt.
Publikation
Zwischen Kontrolle und Interoperabilität: Das BGH-Urteil zu Sony v. Datel und seine Folgen für das Software-Urheberrecht
Das Urteil des Bundesgerichtshofs (BGH) in der Rechtssache Sony v. Datel (BGH, 31.07.2025 – I ZR 157/21, Action Replay II) (das „Urteil”) klärt eine bislang umstrittene Frage: Wann stellt die Manipulation von RAM-Daten eine urheberrechtsrelevante Bearbeitung von Software dar?
Subscribe and stay up to date with the latest legal news, information and events . . .