China has moved to curtail international influence over its $US100 billion ($118.4 billion) insurance market, with the country’s regulator introducing new restrictions on foreign insurers.

The China Insurance Regulatory Commission stipulates that insurers have at least $US2 billion ($2.37 billion) in assets, three consecutive years of top marks from an international credit rating agency and a record of strong earnings over the same period.

Any deals by insurers must be funded by their own capital rather than bank loans, and investors in a Chinese insurance company will be subject to a three-year “lock-up” period designed to prevent profiteering.

The regulator is maintaining a foreign investment cap of 25%, and any single insurer is limited to a 20% stake.

The new rules severely tighten those announced in 2001 when China opened its insurance market to foreign companies. Having required foreign liquidity to kick-start insurance growth, China is now concerned the sector has come under too much control by international corporations.

China’s insurance market is expected to grow 13% this year.