Published on : Nov 05, 2015
China has been recently asked by the foreign business lobbies to substantially revise the proposed regulations for the insurance industry. The news signaled a widening dispute that was started as similar rules of bank technology were published earlier this year.
The China Insurance Regulatory Commission announced the draft regulations last month. The regulations stated that insurance companies, alongside their asset managers and holding companies should prioritize purchasing “secure and controllable” products including local software and hardware and domestic encryption technologies.
Over 20 international business lobbies including the American Council of Life Insurers, JEITA (Japan Electronics and Information Technology Industries), and American Chamber of Commerce, stated that such regulations by the China will go against the global standards for information security in a joint letter addressed to CIRC, which was delivered at the end of the previous month.
In the letter, the lobby group urged CIRC to avoid the risks related to excessive reliance on localized solutions, restrictions on data flows, and prescriptive technologies.
The also said in the letter by ignoring the international technologies, which are more secure, China is adopting an approach that is likely to compromise the security of digitized operations in the country.
CIRC also received requests from the business lobbies including tech companies and firms from the United States, Europe, and Canada for sufficient time for them to provide helpful consultation.
A copy of this letter was obtained by Reuters, and the people who received the version of the letter sent to regulator have already confirmed its contents.
An official from JEITA, who insisted on his name not being disclosed as he is not authorized to speak to media, said in a letter sent to leading news agency that the draft rules were ambiguous and were biased towards products manufactured by China.