Companies need cash for two quarters and last year’s liability
China's insurance regulator says insurers setting up branches must prove they have the cash to meet their liabilities in the last two quarters and the previous year, Dow Jones reports.
Under the new rules, the main shareholder in an insurer will need to have net assets of 200 million yuan or more to set up the company.
Both rules takes effect on Thursday.
The China Insurance Regulatory Commission said the new rules are intended to "maintain order in the insurance market, protect the legal interests of people who buy insurance, and foster the insurance sector's healthy growth.”
