China's Ministry of Finance and National Financial Regulatory Administration have issued revised professional liability insurance rules for accounting firms, replacing the 2015 interim framework from Jan. 1, 2027. The measures establish minimum aggregate coverage limits, strengthen insurer eligibility and risk-based pricing requirements, and allow qualifying insurance coverage to replace further contributions to an accounting firm's professional risk fund. Firms must meet the requirements within one year after the measures take effect. For firms conducting securities services or audits of financial institutions and other public interest entities, aggregate primary insurance coverage must equal at least the higher of CNY 1 million per partner or CNY 100 million. For other firms, the minimum is the higher of the previous year's audit revenue or CNY 500,000 per partner or shareholder. Existing professional risk fund balances may offset the required coverage amount. Participating insurers must have appropriate expertise and underwriting capacity and maintain a comprehensive solvency adequacy ratio of at least 180% over the previous three years. Accounting firms must report policy and claims information annually by May 31 through the profession's unified regulatory platform and report policy changes or termination within 10 working days.
2026-08-28Ministry of Finance (China)
China's Ministry of Finance and National Financial Regulatory Administration issue revised accounting firm professional liability insurance rules with minimum coverage thresholds
China's Ministry of Finance and National Financial Regulatory Administration have revised professional liability insurance rules for accounting firms, effective Jan. 1, 2027. Minimum aggregate coverage is the higher of CNY 1 million per partner or CNY 100 million for firms serving public interest entities, with separate revenue- and ownership-based thresholds for other firms. Firms have one year from implementation to comply.