China’s Accounting Law: External accounting supervision
China’s Accounting Law: External accounting supervision
(I) State supervision
6. Supervision by insurance regulatory authorities
According to the Insurance Law, insurance regulatory authorities mainly supervise the insurance industry as follows.
(1) The insurance clauses and premium rates of the main types of commercial insurance shall be approved by the insurance regulatory authority, and those of other types of insurance shall be reported to the insurance regulatory authority for record keeping.
(2) An insurance regulatory authority shall have the right to inspect the business operation, financial position, and application of capitals of an insurance company, and request the insurance company to submit relevant written reports and documents within a specified period of time.
(3) Where an insurance company fails to withdraw or carry forward various reserves in accordance with the Insurance Law, or fails to complete reinsurance transactions in accordance with the Insurance Law, or severely violates the provisions of the Insurance Law pertaining to the application of capitals, the insurance regulatory authority shall order the insurance company to take the following measures to make corrections within a specified period of time: ① to withdraw or carry forward various reserves in accordance with the law; ② to complete reinsurance transactions in accordance with the law; ③ to correct the illegal application of funds; or ④ to replace the principal and responsible officers.
(4) An insurance company shall submit its business reports, financial reports, and related statements of the preceding year to the insurance regulatory authority within 3 months after the end of each accounting year and publish them in accordance with the law.
(5) An insurance company shall submit its business statistics of the previous month to the insurance regulatory authority before the end of each month.
(6) An insurance company shall properly keep complete its accounting books, original vouchers, and relevant documents of its business operations.
Robert Zhang 
Steve Li 