07.04.2016, 01:13
SOGAZ Completed State Registration of Its Office in Beijing
OREANDA-NEWS. Beijing Administration for Industry and Commerce issued a certificate of Representative Office registration in China to SOGAZ Insurance. Thus, Kirill Brovkovich, Deputy Chairman of the Board of SOGAZ announced journalists that the process of state registration of the Representative Office had been completed, on March 1.
The process of registration of representative offices of foreign insurance companies in China comprises of two stages: first, an application for registration is submitted to the China Insurance Regulatory Commission (CIRC), which directly reports to the State Council of the PRC. Then, if the CIRC decision is favourable, documents are handed over to Beijing Administration for Industry and Commerce that makes the final decision.
According to Kirill Brovkovich, SOGAZ obtained a positive opinion of CIRC in the form of a permit to set up a permanent representative office on December 31, 2015, and a Certificate of Registration issued by Beijing Administration for Industry and Commerce for a period of 10 years on February 23, 2016.
"From the date of state registration, the Representative Office is considered functioning and may fully perform its functions as defined by the Chinese legislation. These functions include surveys of the Chinese insurance market, establishment of business contacts with insurance and reinsurance companies, promotion of the Company's reinsurance programs on the Chinese market, raising awareness of the Russian insurance market and engagement of Chinese partners in cooperation. Direct conclusion of contracts is outside the scope of the Representative Office's tasks and is prohibited by Chinese laws", said Kirill Brovkovich.
In February, Dagong Global Credit Rating for the first time assigned SOGAZ Insurance Group a long-term credit rating BBB+ in Russian and foreign currency with a "stable" outlook. SOGAZ became the first Russian insurer that passed the rating procedure with Dagong. In addition, SOGAZ was registered in the PRC as a foreign reinsurer. On January 1, 2016, CIRC implemented the Reinsurance Registration System (RRS) for tracking, approval and compulsory registration of foreign reinsurers intending to operate on the Chinese market. SOGAZ is the only Russian insurer permitted to carry out trans-border operations of incoming obligatory reinsurance with contracting parties in the PRC.
"SOGAZ appreciates the potential of cooperation between Russian and Chinese markets and intends to fully use it for the strengthening and further development of relationships with partners from the PRC.
Setting up of the Representative Office in Beijing, the assignment of Dagong rating and the registration in the RRS are significant and very important steps in this process. This demonstrates our serious approach to the development of cooperation with this country which, I hope, will be appreciated by our partners from the PRC", noted Kirill Brovkovich.
According to CIRC, China became the third largest insurance market in the world in 2015. Over the period from 2010 to 2015, its premium income increased from CNY 1.3 trillion ($198 billion) to CNY 2.4 trillion (approximately $365 billion). In addition, the Chinese market is notable for high concentration: top 3 insurers account for 53.7% on the Life Insurance market and almost 65% on the Non-Life Insurance market. The total share of foreign companies in these sectors is only 5.6% and 1.3%, respectively.
The process of registration of representative offices of foreign insurance companies in China comprises of two stages: first, an application for registration is submitted to the China Insurance Regulatory Commission (CIRC), which directly reports to the State Council of the PRC. Then, if the CIRC decision is favourable, documents are handed over to Beijing Administration for Industry and Commerce that makes the final decision.
According to Kirill Brovkovich, SOGAZ obtained a positive opinion of CIRC in the form of a permit to set up a permanent representative office on December 31, 2015, and a Certificate of Registration issued by Beijing Administration for Industry and Commerce for a period of 10 years on February 23, 2016.
"From the date of state registration, the Representative Office is considered functioning and may fully perform its functions as defined by the Chinese legislation. These functions include surveys of the Chinese insurance market, establishment of business contacts with insurance and reinsurance companies, promotion of the Company's reinsurance programs on the Chinese market, raising awareness of the Russian insurance market and engagement of Chinese partners in cooperation. Direct conclusion of contracts is outside the scope of the Representative Office's tasks and is prohibited by Chinese laws", said Kirill Brovkovich.
In February, Dagong Global Credit Rating for the first time assigned SOGAZ Insurance Group a long-term credit rating BBB+ in Russian and foreign currency with a "stable" outlook. SOGAZ became the first Russian insurer that passed the rating procedure with Dagong. In addition, SOGAZ was registered in the PRC as a foreign reinsurer. On January 1, 2016, CIRC implemented the Reinsurance Registration System (RRS) for tracking, approval and compulsory registration of foreign reinsurers intending to operate on the Chinese market. SOGAZ is the only Russian insurer permitted to carry out trans-border operations of incoming obligatory reinsurance with contracting parties in the PRC.
"SOGAZ appreciates the potential of cooperation between Russian and Chinese markets and intends to fully use it for the strengthening and further development of relationships with partners from the PRC.
Setting up of the Representative Office in Beijing, the assignment of Dagong rating and the registration in the RRS are significant and very important steps in this process. This demonstrates our serious approach to the development of cooperation with this country which, I hope, will be appreciated by our partners from the PRC", noted Kirill Brovkovich.
According to CIRC, China became the third largest insurance market in the world in 2015. Over the period from 2010 to 2015, its premium income increased from CNY 1.3 trillion ($198 billion) to CNY 2.4 trillion (approximately $365 billion). In addition, the Chinese market is notable for high concentration: top 3 insurers account for 53.7% on the Life Insurance market and almost 65% on the Non-Life Insurance market. The total share of foreign companies in these sectors is only 5.6% and 1.3%, respectively.
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