Insurance means that the insured transfers the risks he bears to the insurance company, and the insurance company establishes an insurance fund by collecting insurance premiums to compensate the insured for economic losses according to the insurance contract. Reinsurance is a reinsurance contract concluded between the cedant and the acceptor. According to this reinsurance contract, the reinsurer compensates the cedant for the economic losses caused by the liability or the insured risk. Reinsurance is also a kind of insurance, and like insurance, it is a kind of dangerous commitment, dispersion and transfer.
Reinsurance is a kind of insurance, but it is different from insurance in many ways. Its characteristics are: (1) Both parties to the contract are insurers, one is a reinsurer and the other is a reinsurer. (2) It is not important that the object of the reinsurance contract is the insurance compensation liability undertaken by the reinsurance cedant. (3) All reinsurance contracts, including life insurance and property insurance, follow the principle of compensation.
Reinsurance is a contractual relationship between the reinsurer and the original insurer, a contractual behavior of the original insurer to transfer insurance risks to the reinsurer, and an independent contract based on the original insurance contract. Therefore, reinsurance cannot be established without the original insurance.
When accepting reinsurance business, the reinsurance acceptor must provide the original insurer with a guarantee to fulfill its obligations. The method is that the original insurer deposits the premium reserve or the reinsurer provides the credit certificate.
Provisions on the establishment of reinsurance companies
first
In order to promote the development of reinsurance market and standardize the establishment of reinsurance companies, these Provisions are formulated in accordance with the Insurance Law of People's Republic of China (PRC) and the Regulations on the Administration of Foreign-funded Insurance Companies in People's Republic of China (PRC).
second
The term "reinsurance company" as mentioned in these Provisions refers to a company established with the approval of China Insurance Regulatory Commission (hereinafter referred to as China Insurance Regulatory Commission) and registered in accordance with the law to specialize in reinsurance business.
essay
The establishment of a reinsurance company shall be approved by the China Insurance Regulatory Commission. According to the business scope, reinsurance companies can be divided into life reinsurance companies, non-life reinsurance companies and comprehensive reinsurance companies.
Article 4
With the approval of the China Insurance Regulatory Commission, reinsurance companies may engage in all or part of the following businesses:
(1) Life reinsurance business
1. China reinsurance business;
2. China reinsurance business;
3. International reinsurance business.
(2) Non-life reinsurance business
1. China reinsurance business;
2. China reinsurance business;
3. International reinsurance business.
(3) Operating all or part of the businesses mentioned in Items (1) and (2) at the same time.
Article 5
The paid-in monetary capital of life reinsurance companies and non-life reinsurance companies is not less than 200 million yuan or the equivalent in a freely convertible currency; The paid-in monetary capital of a comprehensive reinsurance company shall not be less than 300 million yuan or its equivalent in a freely convertible currency. The capital contribution of a foreign insurance company shall be in freely convertible currencies.
Article 6
Reinsurance companies shall employ actuarial professionals recognized by the China Insurance Regulatory Commission.
Article 7
Chinese shareholders who invest in reinsurance companies shall comply with the Interim Provisions of China Insurance Regulatory Commission on Investment Insurance Companies, and their shareholding ratio and changes in equity shall comply with the relevant provisions of China Insurance Regulatory Commission.
Foreign-funded insurance companies investing in Sino-foreign joint ventures and wholly foreign-owned reinsurance companies shall abide by China's commitment to join the World Trade Organization.
Article 8
These Provisions shall apply to the working capital standards and requirements for foreign reinsurance companies to set up branches in China.
Article 9
These Provisions shall apply mutatis mutandis to the branches established in the Mainland by reinsurance companies from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Province Province.
Article 10
These Provisions shall be implemented as of the date of promulgation.