China regulates forex payment in reinsurance
( 2003-07-04 10:11) (Xinhua)
The China State Administration of Foreign Exchange (SAFE) and the China
Insurance Regulatory Commission announced the issuance of a joint circular
Thursday setting out the procedures for the purchase and payment of foreign
exchange in outward reinsurance.
A SAFE spokesman said the move is aimed at further regulating outward
reinsurance activities by both Chinese and foreign-funded insurance companies
operating in China, so as to effectively diversify insurance risks.
The circular provides detailed regulations for specific types of insurance
businesses and defines the eligibility requirements for insurance companies
wishing to purchase foreign exchange in outward reinsurance payment.
Meanwhile, the circular includes a statistical reporting system for outward
reinsurance business for domestic insurance companies.
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