China Insurance Regulatory Commission Builds up an Orderly Platform
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| 6/25/2004 11:12:0 China Economic Times |
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China Insurance Regulatory Commission (CIRC) vice-chairman Li Kemu expressed during the ¡°Foreign-funded Insurance Company Operation & Supervision Forum¡± held today that, CIRC will be committed to building up a standardized and orderly insurance market environment through strengthening supervision, to promote fair competition and common development between Chinese and foreign-funded insurance companies.
According to Li Kemu, based on China¡¯s commitment for its entry into WTO, before the end of this year, China¡¯s insurance market will further expand its opening-up to the outside world, and the impact to the Chinese insurance market by foreign-funded insurance companies will be further strengthened. Presently, from the overall perspective, foreign-funded insurance companies have played a positive role in promoting the standard development of the Chinese insurance market, but there are still some problems in need of urgent solutions. These problems include mainly: business operation beyond one¡¯s registered scope, damage to the legal rights and interests of cooperative partners, unhealthy establishment of corporate organizational structure and internal setup, illegal overseas profit transfer, avoidance of tax payment, and underground guarantee slip etc.
Li Kemu thus expressed that, promulgation of the ¡°Detailed Rules for Implementation of Management Regulations on Foreign Insurance Company¡± has taken full consideration of the issues of development of foreign insurance companies, enhanced insurance supervision transparency and efficiency, and also improved the legal guarantee for China¡¯s strict performance of its WTO commitments. Administrative examination and approval system and the promulgation of the ¡°Administration Permit Act¡± will play an important role for government function transformation, strengthening administration according to law, and improvement of the supervision efficiency. CIRC will continue to strengthen its research and references on the international insurance supervision criterion and insurance supervision experiences, and continually improve insurance supervision.
Li Kemu hopes that foreign-funded insurance companies will better base themselves upon the Chinese market environment, and adhere to the path of innovation and development, especially insurance product innovation. Further strengthen understanding and adaptation to the Chinese market, strengthen market research and application of advanced technologies and experiences; further bring into play the demonstration effect of sound structure of corporate governance to the Chinese insurance market, and further strengthen mutual cooperation with Chinese-funded insurance companies.
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