The Insurance Act 2015 (the "Act") comes into force tomorrow. It represents a fundamental departure from existing insurance law. The changes impact on a number of key areas which are...11 August 2016
China: draft rules to allow life insurers to sell policies online to purchasers nationwide
If implemented, this circular will allow life insurance companies to sell accident, fixed-term life and whole life policies, through online channels, to customers nationwide – subject to certain provisos, including that they meet solvency requirements of 150%, have appropriate internal controls in place and can satisfy customer requirements. Sales websites must note the location of the insurer's physical entity and that it may not be able to provide certain services in other areas.
Currently, insurers in China may sell policies only within the area or areas of China where they are licensed to do so. It is possible to obtain a licence to sell reinsurance nationally, but this is generally not the case for direct insurance.
This change would likely be particularly welcomed by foreign life insurers operating in China. Most foreign-invested insurers do not have a wide, cross-China network of branches and are commonly unable to obtain approval to open multiple branches concurrently (despite there being no regulation to this effect). This puts them at a disadvantage against their domestic competitors, who do not face this restriction. This circular would, if implemented, give foreign-invested life insurers access to a national online market without the need to establish multiple branches across the country.
The Hogan Lovells’ Corporate Insurance Newsletter for July has been published. This provides a round-up of UK, EU and international regulatory developments relevant to UK based...04 August 2016
Introduction03 August 2016