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Higher threshold for insurers

By Song Hongmei (chinadaily.com.cn)
Updated: 2006-07-27 08:46

Foreign insurers are to face a much higher threshold in entering the Chinese market, according to the revised management rules concerning foreign insurers' representative offices in China released by the China Insurance Regulatory Commission (CIRC) on July 21. The revised rules will come into effect as of September 1, 2006.

The new rules stipulate that foreign insurance institutions should have at least 20 years of continuous experience in running an insurance business to qualify for a license to set up a representative office in China.

Foreign companies running non-insurance businesses should have a business history of more than 20 years.

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The full text is available in the July Issue ofChina Insurance.