CIRC improves insurance fund rules but still has a way to go

By Wang Jihong and Gao Lei, V&T Law Firm
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Following the implementation of the Interim Measures Governing the Use of Insurance Funds in 2010, major insurance companies have taken action, intending to scramble for a share in the market by investing insurance funds in the immovable property sector, in areas such as infrastructure.

Wang Jihong Managing Partner V&T Law Firm
Wang Jihong
Managing Partner
V&T Law Firm

However, these investments have not proceeded as smoothly as expected since the measures were introduced two years ago. To address the issues that arose during implementation of the measures, the China Insurance Regulatory Commission (CIRC) published the Notice on Matters Related to the Regulation of the Use of Insurance Funds on 7 May 2012.

The notice identifies and describes prominent issues encountered by insurers when they invest in equity, infrastructure and other immovable property businesses. It also expands the scope of investment for insurance funds. The notice was timely for insurance companies who were still feeling their way with these investments.

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Wang Jihong is the managing partner at V&T Law Firm, and Gao Lei is a lawyer at the firm

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