b'TABLE OF CONTENTSINSURANCE REGULATORY With the disruption caused by COVID-19, thebusinesses in the Mainland, bringing a greater introduction of the new C-Ross rules could impactlevel of investments, training and development to the rebound of the market as it will be underthe local insurance industry.enhanced regulatory supervision. InsuranceAccording to CBIRCs report on the 2019 China companies will need to stay away from riskyInsurance Sector issued in January 2020, the gross investments and products, and look for balancedwritten premium for Mainland China was 4.4% of GDP return opportunities in strategically importantin 2019. Comparatively, it was lower than that of the sectors of the economy, such as infrastructuremore developed countries (e.g., gross written development in government-designated targetpremium in the US was 6.5%). This shows that the regions and ESG. Mainland insurance market still has significant opportunity for growth and expansion. The relaxation CBIRCs New Broker Regulationson the regulations for foreigner brokers and agencies Creates Opportunities for Foreign Firms is welcomed, as it will bring about more competition On December 17, 2021, the CBIRC issued newand dynamism, as well as a greater suite of products rules for foreign insurance brokers and agencies,and services in the long run.loosening some of the onerous requirements for those looking to establish business in theData Law Diversity Delays GBA Mainland. In the past, insurance companies had toInsurance Plansdemonstrate they have had operations in anotherThe proposed set-up of the Greater Bay Area country for more than 30 years and had a(GBA) Insurance Connect Scheme (Scheme) representative office in the Mainland for at leastdates back to October 2019, when the CBIRC issued two years. In addition, there was a minimum asseta circular to the insurance industry seeking for requirement of US$200 million for theseopinions. With its establishment, insurers in Hong companies to conduct their businesses in theKong will be able to provide various insurance Mainland. That said, easing such requirementsservices, initially policy services such as renewal, may not be enough to attract smaller brokers, asand later sales, throughout 11 different cities in the many of them still fall short of the new capitalGBA, nine in Guangdong, and Hong Kong alongside requirement of 50 million (around US$7.84Macau. Excluding Hong Kong and Macau, the nine million) and the large international brokers haveother GBA cities currently hold a population of 61.5 already set up operations on the Mainland. million and a total of US$33 billion in life insurance With a view to open up the China insurancepremiums. Compared with Hong Kongs total life market, the CBIRC has been gradually easingpremium at US$55 billion with only a population of these requirements since 2018. The new rules7.5 million, the difference in life premiums per published by the CBIRC are expected to attractcapita demonstrates a significant gap and growth more foreign brokers and agencies to set up theirpotential for the insurance industry within the GBA MAYER BROWN |109'