Law No. 1/2026 was published in the Official Gazette on January 7, 2026, and took effect on January 22, 2026. The legislation introduces a mandatory insurance requirement for individuals entrusted with managing public resources, requiring coverage to be in place before they assume their duties. The insurance must respond to financial losses arising from gross negligence, and insurers are designated as necessary joint parties in any related liability proceedings.

Starting November 1st, 2025, companies looking to do business in China will be required to pay the full cost of their local insurance policy premiums up front before they can be considered officially covered.