July 11, 2018

CBIRC Issues Regulations Governing Independent Directors for Insurers

On 9 July 2018, the China Banking & Insurance Regulatory Commission (CBIRC) issued ‘Regulations Governing Independent Directors for Insurers’ (Regulations). Key points of the Regulations are:

  1. The Regulations apply to domestic-invested PRC insurance holding companies, insurance companies, insurance asset management companies and insurance mutuals (collectively ‘DIIs’). Foreign-invested insurers in China are encouraged to apply the Regulations by way of best-practice guidance.
  2. The Regulations require that all DII boards be comprised of a minimum of three, and in any event no less than one third, independent directors.  For DIIs with a controlling shareholder holding more than 50% of shares, the Regulations require (unless otherwise stated)  independent directors to occupy at least half of all board seats.
  3. DIIs are obligated to comply with these Regulations’ independent director quotas no later than the end of 2019.