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By Hao Zhou (chinadaily.com.cn)
Updated: 2007-08-10 17:58

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The China Insurance Regulatory Commission (CIRC) has promulgated provisional measures on managing insurance companies' guarantee funds. The latest measures entered into force on August 2, and the previous ones, which were enacted by CIRC in 2005, were revoked at the same time.

The new measures promise insurance companies more alternatives for depositing guarantee funds in banks. Insurance corporations can choose almost any bank with a registered capital of no less than four billion yuan (US$528 million).

More options in choosing banks indicate fierce competition among banks and a larger return rate for insurance companies, said Luo Yi, a researcher from China Merchants Securities.

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The full text is available in the August Issue ofChina Insurance.