Insurance News
- China to regulate insurance agents based on their capital
Date: 7-May-2007 Sources: (People's Daily)
The country's 141,300 insurance agents are to be classified into three categories each with different minimum capital requirements and range business options to achieve better market order, the China Insurance Regulatory Commission (CIRC) said on Saturday.
The commission said the insurance agents with registered capital of no less than 10 million yuan (1.3 billion U.S. dollars) will be allowed to serve as agents for an unlimited number of insurance companies.
Agents with no less than 500,000 yuan (64,935 U.S dollars) in registered capital can serve no more than five insurance companies, while those with no registered capital requirement can only sell insurance products for a single company.
The commission said a pilot project has been carried out in Beijing and Liaoning Province, and the finalized regulation is expected to be implemented nationwide by the end of this year.
The country's 141,300 insurance agents posted premium revenue totaling 159.3 billion yuan (20.7 billion U.S. dollars) last year, or 28.24 percent of China's total premium revenue.
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