According to Article 70 of China's Insurance Law, the establishment of an insurance company in China must be approved by the competent financial department, which is a necessary procedure. The competent financial authority in China is the People's Bank of China, so the approving authority is the People's Bank of China, which, as the central bank of the country, is responsible for supervising financial institutions and their business activities throughout the country. China classified the insurance industry as financial industry. Therefore, the examination and approval authority for the establishment of insurance companies should also be the People's Bank of China. At present, China implements the examination and approval system for the establishment of insurance companies, that is, any insurance company must be approved by the People's Bank of China before it can be established. The People's Bank of China has the right to plan and arrange the number and scale of insurance companies according to the needs of economic development and the development scale of the insurance market.
(1) Conditions for the establishment of an insurance company
(1) there are legal articles of association.
The Articles of Association is the basic legal document for the establishment of a company, which is drafted by the promoters and unanimously agreed by all the promoters. It is a legal document that stipulates the internal and external of the company. Therefore, the articles of association are the core legal documents for the establishment of a company. The establishment of an insurance company should not only comply with the provisions of the Company Law, but also comply with the provisions of the Insurance Law, and there should be no conflict. The articles of association must be comprehensive and clear, and conform to the provisions of the Company Law and the Insurance Law. Once approved, the Articles of Association shall not be violated or changed at will.
(2) It has registered capital that meets the requirements.
Registered capital is the general guarantee property for insurance companies to undertake debts. It is the total contribution of all investors. Usually, the registered capital is the total amount of company property reported when applying for the establishment of an insurance company.
China's "Company Law" stipulates in principle the capital for establishing a company. Due to the particularity of the insurance industry, the Insurance Law supplements the capital for the establishment of insurance companies according to the Company Law. According to Article 72 of the Insurance Law, the minimum registered capital of an insurance company shall not be less than 200 million yuan. Moreover, the financial and insurance authorities may adjust the minimum registered capital according to the business scope and scale of the insurance company, but it shall not be less than 200 million yuan. The minimum capital of an insurance company registered to conduct business nationwide is not less than 500 million yuan, and the registered capital of an insurance company operating business in a specific region is not less than 200 million yuan. Moreover, the minimum registered capital of an insurance company must be paid-in monetary capital, that is, fixed assets cannot be used as the registered property of an insurance company, which is an important difference from ordinary companies.
③ Senior managers with professional knowledge and business experience.
On the one hand, the insurance industry is highly specialized, and the whole business process involves some special professional knowledge. For example, claims business requires not only general legal knowledge, but also professional theoretical knowledge of insurance assessment. Another example is life insurance business, which requires corresponding life insurance actuaries to formulate scientific and reasonable life insurance varieties. On the other hand, because insurance involves a wide range of society, the insurance industry itself is a risky industry, which needs high-level management talents for scientific management. Therefore, all countries in the world have made strict regulations on the qualifications of senior managers of insurance companies. Anyone who does not meet the requirements of laws and regulations shall not hold a senior management position in the company; Senior managers who meet the requirements cannot start foreign business and insurance business without a quorum. According to Article 5 of the Interim Provisions on Insurance Management: "More than 60% of employees of insurance companies should have engaged in insurance work and graduated from insurance major or related major in colleges and universities. An insurance company engaged in life insurance business must have at least one actuary recognized by the People's Bank of China. " In addition, employees who hold the position of chairman of an insurance company must also meet the qualifications stipulated by the People's Bank of China.
(4) have a sound organization and management system.
The organization here refers to the company rights organization established within the company. The organizational structure of an insurance company consists of shareholders' meeting, board of directors and board of supervisors. A wholly state-owned insurance company does not have a shareholders' meeting, and the rights of the shareholders' meeting are exercised by state-authorized investment institutions or state-authorized departments to decide on major issues of the company. However, the merger, division, dissolution, increase or decrease of capital and issuance of corporate bonds of a company must be decided by the investment institution or the department authorized by the state.
(5) Having business premises and other business-related facilities that meet the requirements.
Top
(2) Procedures for establishing an insurance company
An insurance company can only be established after legal establishment procedures. These procedures include four steps: application, formal application, approval and establishment.
① Application.
The application is to submit the intention to set up an insurance company to the competent authority of the insurance company. At the time of application, according to the provisions of Article 73 of China's Insurance Law, an application for establishment shall be submitted to the People's Bank of China, which shall specify the name, registered capital and business scope of the insurance company to be established; Feasibility study report; Other documents and materials as prescribed by the financial supervision and regulation department.
2. Formal application.
This is the China People's Bank's preliminary examination of the application in accordance with relevant policies and regulations. After finding that it meets the requirements, it requires the applicant to prepare for the establishment of an insurance company in accordance with the provisions of the Insurance Law, the Company Law and the Provisional Regulations on Insurance Management, and submit a formal application. According to Article 74 of the Insurance Law, when formally applying for the establishment of an insurance company, the articles of association of the insurance company shall be submitted; The register of shareholders and their shares or investors and their capital contributions; Credit certificates and related materials of shareholders holding more than 0/0% of the shares of the company/KLOC-; A capital verification certificate issued by a statutory capital verification institution; Senior managers to be employed and their resumes and qualification certificates; Business policies and plans, business premises and other business-related facilities, as well as other documents and materials required by the financial supervision and regulation department. The preparation and formal application are carried out at the same time, and the preparation period shall generally not exceed six months (Article 74 of the Insurance Law). During the preparation period, the applicant's main job is to formulate the articles of association of the insurance company; Look for relevant personnel; Formulate relevant systems; Establish relevant internal organizations and business premises.
3 recognition.
After submitting a formal application, the financial supervision and regulation department will generally make a decision on approval or disapproval within six months (Article 75 of the Insurance Law). The audit basis of financial supervision and management institutions is related laws and regulations. Those that meet the relevant regulations shall be approved, and those that fail shall be denied.
4 established.
An approved insurance company shall be issued with an insurance business license by the People's Bank of China. With this license, it shall apply to the administrative department for industry and commerce for a business license, obtain legal person status, and declare its establishment. However, if an insurance company fails to register its establishment within six months from the date of obtaining the insurance business license, the insurance business license will automatically become invalid (Articles 76 and 77 of the Insurance Law). After the establishment of an insurance company, it shall withdraw 20% of the total registered capital and deposit it in the bank designated by the financial supervision and regulation department. The deposit shall not be used except for the liquidation of the insurance company (Article 78 of the Insurance Law). That is, the insurance certificate can only be used for debt repayment at liquidation.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.