China Banking and Insurance Regulatory Commission, together with the Ministry of Emergency Management, the Ministry of Finance and four other ministries, issued revised implementation measures for work safety liability insurance, expanding and clarifying mandatory take-up for high-risk sectors and strengthening requirements on product terms, pricing, claims handling and accident-prevention services. Officials from the Ministry of Emergency Management and the China Banking and Insurance Regulatory Commission provided a Q&A to explain the changes and the supervisory approach. The measures (six chapters, 48 articles) specify the industries and fields required to purchase cover, including mining, hazardous chemicals, fireworks, transport, construction, civil explosives, metal smelting and fisheries, and clarify the meaning of “high-risk” entities in the annex. The national minimum limit for death and disability liability per person for production safety accidents rises to CNY 400,000 from CNY 300,000, with provinces able to set higher local minima (some areas are cited as already at CNY 800,000). Coverage must extend to all workers of the insured enterprise, including temporary hires and dispatched labour, on the same insured amount standard. Standard policy wording will be developed and issued by the Insurance Association of China under the guidance of the State Council’s insurance supervisor after consulting relevant departments, and insurers must apply it; for pricing, provincial authorities will organise the publication and adjustment of pure risk loss rates by sector for insurers’ reference. The measures also add a dedicated chapter on accident-prevention services, requiring insurers to build professional capability and to use qualified safety technical service institutions (or invest in them) while prohibiting falsified service reports; accident-prevention spending must be budgeted and used for prevention and related technical support, with insurers required to set a dedicated budget capped at 21% of collected premiums, alongside a cap on commissions for underwriting high-risk entities of 5%. Information and supervision provisions include a national accident-prevention service information management system built by the emergency management authority with insurer data reporting, support for an industry information-sharing platform, fast-track and advance-payment mechanisms for major or typical accidents, a joint inter-agency working mechanism, sanctions for violations, an evaluation and disclosure regime for accident-prevention services, clarified oversight for cross-location policies of group subsidiaries based on the actual operating location, and restrictions on administrative actions that distort market competition.
China Banking and Insurance Regulatory Commission 2025-04-02
China Banking and Insurance Regulatory Commission and six ministries issue updated rules for work safety liability insurance raising minimum cover to CNY 400,000
The China Banking and Insurance Regulatory Commission and several ministries have revised work safety liability insurance measures, mandating coverage for high-risk sectors and enhancing product terms, pricing, and accident-prevention services. The national minimum liability limit for production safety accidents is raised to CNY 400,000 per person, requiring coverage for all workers, including temporary hires. Insurers must follow standard policy wording and pricing guidelines, with a budget for accident-prevention services capped at 21% of premiums.