CHINA Law and Practice Contributed by: Elsie Shi, George Yu, Eleanor Gu and Zach Xu, Jincheng Tongda & Neal Law Firm
Jincheng Tongda & Neal Law Firm 11th Floor, China World Tower A No 1 Jianguo Menwai Avenue Chaoyang District Beijing, 100004 China
Tel: +86 10 5706 8585 Fax: +86 10 8515 0267 Email: elsieshi@jtn.com Web: www.jtn.com/EN
in broader agreements such as the Regional Compre- hensive Economic Partnership (RCEP) and the Main- land-Hong Kong/Macao Closer Economic Partnership Agreement (CEPA), which address cross-border sup- ply of insurance services and elements of regulatory co-operation. In China, court judgments are not formal sources of law. However, in the absence of explicit rules, courts are required to consult guiding cases issued by the SPC and refer to other prior judicial decisions for refer- ence in similar matters. However, none of these con- stitutes binding precedent in the common-law sense. 2. Regulation of Insurance and Reinsurance 2.1 Insurance and Reinsurance Regulatory Bodies and Legislative Guidance Insurance and reinsurance activities are supervised by the NFRA and its local bureaus. Regulatory Authority and Policymaking The NFRA exercises unified supervision over the insurance sector and formulates regulatory rules and policies for insurers. Licensing, Ownership and Governance Supervision The NFRA oversees market entry, business-scope and branch approvals, and shareholder and equity- change approvals. It supervises insurers’ corporate governance, risk management, internal-control and disclosure arrangements.
1. Basis of Insurance and Reinsurance Law 1.1 Sources of Insurance and Reinsurance Law Statutes The main legal sources include the Insurance Law of the People’s Republic of China (PRC) and the PRC Civil Code, as well as other relevant laws such as the PRC Maritime Law (which contains a dedicated chapter on marine insurance), the PRC Civil Proce- dure Law, the PRC Arbitration Law and the PRC Spe- cial Maritime Procedure Law, which regulate litigation and arbitration involving insurance and reinsurance disputes. Judicial Interpretations The Supreme People’s Court (SPC) issues binding judicial interpretations on the application of laws, including (without limitation) the four interpretations of the Insurance Law and the interpretations relating to the Civil Code. Administrative Regulations and Regulatory Rules The State Council and central government depart- ments issue regulations concerning insurance and reinsurance, and insurers’ operations are largely gov- erned by rules published by the National Financial Regulatory Administration (NFRA). International Agreements China is not party to a treaty devoted solely to insur- ance, though insurance-related commitments appear
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