12.1 Introduction

Insurance funds come from the policyholders in the form of premiums and from the shareholders. The management of the pool of the insurance funds is an important business of insurance companies and is subject to a strict regulation by the China Banking and Insurance Regulatory Commission (the CBIRC). The Insurance Law, the CBIRC, and the former China Insurance Regulatory Commission (the CIRC) have so far formulated a diversity of provisions in respect of insurance funds utilization. The insurers’ activities in relation to insurance funds utilization must strictly follow these statutory and regulatory rules.