Since its establishment, the CIRC has been concentrating on the societal and economic significance of insurance industry in the overall opening up of China, and researching on the importance of insurance industry in the evolution of modern human society. With the “International Cooperation System for the Opening up of China’s Insurance Industry”, the CIRC has been actively participating in international cooperation, increasing its influence, and enhancing its reputation in the international arena.
I. Negotiation and Coordination Mechanism for the Opening up of Insurance Industry
The CIRC tries its utmost to understand the international liberalization of insurance, and participate in international negotiations. We have established the negotiation and coordination mechanism for the opening up of China’s insurance industry, with comprehensive contacts worldwide. We are having an increasingly active participation in international trade in insurance service, with the intention to tap potentials of China’s insurance industry in international trade in service.
(I) In China’s accession negotiations to the WTO, the CIRC carefully designed the negotiation strategies, safeguarded the interests of indigenous insurance industry, and contributed to the successful accession of China to the WTO. In the new round of negotiations of the WTO, the CIRC will have more in-depth discussions and consultations with other WTO members. With the philosophy of being reasonable, fair and practical, we have strived to push ahead with the development of international trade in service.
(II) The CIRC also actively participates in the Free Trade Area negotiations between China and ASEAN, Australia, and New Zealand, and the CEPA negotiations between the Chinese Central government with Authorities of the SARs of Hong Kong and Macao.
II. Mechanism of International Insurance Supervision Cooperation
(I) Participations in the IAIS
In Oct. 2000, Mr. MA Yongwei, the former Chairman of the CIRC, headed a delegation for the 7th annual conference of IAIS held in South Africa. After unremitting efforts from the Chinese side, IAIS officially granted membership to China and changed the title of Taiwan’s membership from “Taiwan” to “Chinese Taipei”.
In April 2004, the CIRC joined 6 committees and subcommittees of the IAIS, including Emerging Markets Committee, Accounting Subcommittee, Insurance Laws, Regulations, Practices and Standards Subcommittee, Reinsurance and Other Forms of Risk Transfer Subcommittee, Solvency and Actuarial Issues Subcommittee and Task Force on E-commerce and Internet Workgroup.
In Oct. 2003, the Vice-Chairman of the CIRC, Mr. LI Kemu, led a delegation to the 10th Annual Conference of the IAIS in Singapore, and successfully won China the opportunity to host 2006 IAIS Annual Conference.
In Oct. 2004, the Chairman of the CIRC, Mr. WU Dingfu, attended the 11th IAIS Annual Conference in Jordan, and delivered a keynote speech on the development of China’s insurance industry, elaborating on the significance of insurance business in the national macro-economy and the contributions by China’s insurance industry to the development of global insurance business. He also had discussions with international regulators and supervisors as regards the challenges and opportunities faced by the global insurance community.
In Oct. 2004, the CIRC held an IAIS training program, “Capital Adequacy and Internal Control Scheme”, in Beijing for insurance supervisors in Asian region. Attendants were from the regulatory authorities of 18 nations such as Indonesia, Malaysia, Vietnam, India, and Pakistan.
In May 2005, the CIRC will host the Technical Committee meeting and its subcommittee meetings.
In Oct. 2006, the CIRC will host the 2006 IAIS Annual Conference.
(II) Regional Insurance Regulatory Cooperation
During IAIS Annual Conference in Oct. 2004 in Jordan, Mr. WU Dingfu, Chairman of the CIRC, met with Asian regulators and reached consensus among regulators as regards the establishment of Insurance Regulatory Cooperation in Asian region.
In Oct. 2004, the CIRC held “Conference on Insurance Regulation in Asia” with the IAIS and the OECD in Beijing, exploring details regarding the insurance regulatory cooperation in Asia region.
In May 2005, the CIRC will host the “Conference on Insurance Regulatory Cooperation in Asia Region”, inviting regulators from 14 Asian countries and regions. The conference will concentrate on the insurance regulatory cooperation mechanism in Asia and a “Beijing Declaration for Insurance Regulatory Cooperation in Asian Regional” will be made, displaying the unanimous determination of Asian nations in strengthening cooperation.
Also in May 2005, the CIRC will hold a “China International Insurance Forum”. Attendants will be insurance regulators, supervisors, senior personalities from the global insurance industry, and officials from international organizations. The forum will be dedicated to the construction of modern insurance supervision system.
(III) Bilateral Cooperation in Insurance Regulation
A. We have signed six “Memorandum of Understanding” with insurance regulatory authorities in Singapore, Germany, the US, Macao, South Korea, and Hong Kong. (see appendix)
B. Progressing Cooperation with the US, the EU and Canada.
(a) Working group with US NAIC on the basis of MOU has had special discussions on pension system, insurance fund management and etc.
(b) The CIRC is participating in the Sino-Canada Dialogue on financial policies and the possibility of signing a MOU between the insurance authorities is being explored.
(c) The CIRC is exploring the possibility of establishing a Dialogue Mechanism with the counterpart in the EU, with a view of promoting more friendly cooperation to achieve win-win results.
III. Cooperation Mechanism on International Projects and Consultations
The CIRC has been working actively to draw on the merits of international expertise and has conducted friendly and successful collaborations with the EU, the World Bank, the OECD, and the Asian Development Bank. The collaborations provide intellectual support in handling snags faced by China’s insurance industry to strengthen its competitiveness and enlarge the market, promoting more importance of insurance industry in China’s economy.
(I) The CIRC has implemented China-EU Financial Services Co-operation Project with the EU, with respect to solvency margin, catastrophe insurance, supervision in open market, and fund management.
(II) CIRE is planning to capitalize on international resources in holding specific researches and workshops on subjects such as “Corporate Governance and Supervision on Financial Holding Companies”, “International Capital Markets”. |