NU Online News Service, Feb. 6, 2004, 1:24 p.m. EST – The Chinese Insurance Regulatory Commission has set high capital requirements for foreign insurers that went to set up shop in China.[@@]
Brad Smith, managing director for international relations at the American Council of Life Insurers, Washington, discusses the ACLI’s concerns about the capital requirements in a comment on China’s compliance with the country’s World Trade Organization free-trade commitments.
The ACLI submitted the assessment to the U.S.-China Economic and Security Review Board, a federal agency that is monitoring China’s efforts to open its markets to foreign competition.
The ACLI firmly supported China’s application to enter the WTO, and, in general, an ongoing series of discussions with the CIRC “has already led to a much-improved communications and transparency process for U.S. insurers in China,” Smith says in written testimony to the U.S.-China review board.
The CIRC started out issuing regulations without giving insurers a formal chance to comment on the regulations or even answering questions about the regulations, Smith says.
In 2003, the CIRC began posting proposed regulations on the Web and requesting public comment, and some insurers say their relations with the CIRC have been perfect, Smith says.