Fraud Inquiry into Shanghai Insurance Firm Rattles Industry

Chen Yi

(Beijing) – A fraud investigation into Shanghai's largest insurance dealer has roiled the country's insurance industry, prompting the regulator to meet and order closer scrutiny of such firms.

Chen Yi, the general manger of Fanxin Insurance Agency Co., was escorted from Fiji back to China by Chinese police on August 19, Xinhua reported. On August 15, the Shanghai branch of the China Insurance Regulatory Commission (CIRC) said the company was selling unauthorized fixed-income financial agreements.