CIRC Supports the Risk Reduction Services in the Property Insurance Industry

On January 31, the Chinese government published the Opinions of the General Office of China Banking and Insurance Regulatory Commission (“CIRC”) on the Property Insurance Industry to Actively Carry out Risk Reduction Services (“Opinions”). The Opinions has come into effect since January 15, 2023.

The Opinions emphasizes returning to the original source as one of the basic principles, requiring to broaden the field of risk reduction services, consolidating foundation of risk reduction services, encouraging companies to establish and improve internal control system related to risk reduction services, and requiring companies not to have false propaganda, illegal promises, mandatory bundled sales and other irregularities; not to extract fees or engage in other illegal acts through risk reduction services and not to illegally trading. The company shall not disclose the information and commercial data of the insured companies.