The solvency of insurance companies mentioned in these Provisions refers to the ability of insurance companies to repay debts. Article 3 An insurance company shall have capital commensurate with its risks and business scale, and ensure the solvency adequacy ratio is not less than 100%.
Solvency adequacy ratio, that is, capital adequacy ratio, refers to the ratio of actual capital to minimum capital of an insurance company. Article 4 An insurance company shall establish a solvency management system, strengthen capital constraints, and ensure the company's solvency is sufficient.
The board of directors and management of an insurance company are responsible for the solvency management of the company. The management of a branch of a foreign insurance company is responsible for the solvency management of the company. Insurance companies and branches of foreign insurance companies shall designate a senior manager to be responsible for the specific affairs of the company's solvency management. Article 5 China Insurance Regulatory Commission (hereinafter referred to as China Insurance Regulatory Commission) shall establish a risk-based dynamic solvency supervision standard and supervision mechanism, comprehensively evaluate and supervise the solvency of insurance companies, and take supervision measures according to law. Chapter II Assessment of Solvency Article 6 An insurance company shall regularly assess its solvency, calculate its minimum capital and actual capital and conduct a dynamic solvency test in accordance with the Rules for Compilation of Solvency Reports of Insurance Companies formulated by the China Insurance Regulatory Commission.
An insurance company shall assess its solvency on the basis of risk. Article 7 The minimum capital of an insurance company refers to the amount of capital that an insurance company should have in accordance with the provisions of the China Insurance Regulatory Commission in order to cope with the adverse impact of risks such as asset risks and underwriting risks on its solvency. Article 8 The actual capital of an insurance company refers to the difference between authorized assets and authorized liabilities.
Recognized assets are assets confirmed by insurance companies in accordance with the provisions of the China Insurance Regulatory Commission when assessing their solvency. List the confirmed assets.
Recognized liabilities are liabilities recognized by insurance companies in accordance with the provisions of the China Insurance Regulatory Commission when assessing their solvency. Article 9 An insurance company shall, in accordance with the provisions of the China Insurance Regulatory Commission, conduct a dynamic solvency test to predict and evaluate the solvency trend in different situations in the future. Article 10 A foreign insurance company with multiple branches in China shall evaluate the overall solvency of all its branches in China. Chapter III Solvency Report Article 11 An insurance company shall prepare and submit a solvency report in accordance with the Rules for Compiling and Reporting Solvency Reports of Insurance Companies formulated by the China Insurance Regulatory Commission, so as to ensure the truthfulness, accuracy, completeness and compliance of the reported information.
The solvency reports of insurance companies include annual reports, quarterly reports and interim reports. Article 12 The board of directors and management of an insurance company shall be responsible for the authenticity, accuracy, completeness and compliance of the solvency report. Article 13 An insurance company shall, after the end of each fiscal year, submit an annual solvency report approved by the board of directors in accordance with the provisions of the China Insurance Regulatory Commission. Article 14 The contents of the annual solvency report of an insurance company shall include:
(1) Statements of the board of directors and management;
(2) Independent opinions of external institutions;
(3) Basic information;
(4) Discussion and analysis by management;
(5) Description of internal risk management.
(6) Minimum capital.
(7) Actual capital;
(8) Dynamic solvency test. Article 15 An insurance company shall submit a quarterly solvency report after the end of each quarter in accordance with the provisions of the China Insurance Regulatory Commission. Article 16 If the solvency of an insurance company is insufficient at any time except the regular reporting date, the board of directors and management of the insurance company shall report to the China Insurance Regulatory Commission within 5 working days from the date of discovery, and take effective measures to improve the solvency of the company. Article 17 An insurance company shall report to the China Insurance Regulatory Commission within 5 working days from the date of occurrence of the following matters that have a significant adverse impact on its solvency:
(1) Significant investment losses;
(two) major compensation, large-scale surrender or encounter major litigation;
(3) The subsidiary and the joint venture have financial crisis or are taken over by the financial supervision institution;
(4) The branch head office of a foreign insurance company is subject to administrative punishment, compulsory supervision measures or bankruptcy protection due to solvency problems;
(5) The parent company has a financial crisis or is taken over by the financial regulatory agency;
(6) Major assets are frozen by judicial organs or severely punished by other administrative organs;
(seven) other matters that have a significant adverse impact on solvency. Article 18 A foreign insurance company with several branches in China shall designate a branch in China as the main reporting institution, which shall be responsible for performing the reporting duties stipulated in these Provisions. Article 19 Where an overseas insurance company invested by an insurance company submits a solvency report prepared in accordance with local regulatory rules to the local insurance regulatory agency, it shall also submit the report to the China Insurance Regulatory Commission.