Caixin
Aug 12, 2021 03:32 AM
FINANCE

China Expands Scrutiny of Online Insurance Sector

What’s new: China’s banking and insurance regulator is stepping up scrutiny of the nation’s online insurance platforms, further expanding the government’s crackdown on the internet sector.

The China Banking and Insurance Regulatory Commission (CBIRC) ordered insurers to curb improper marketing and pricing practices and step up user privacy protection, the commission said Wednesday in a notice on carrying out rectification work for online insurance violations.

Insurers were ordered to conduct self-checks, make immediate corrections and hold responsible personnel accountable. Local CBIRC bureaus will select for further inspection insurers with prominent problems that fail to conduct serious self-checks, the agency said.

The background: ZhongAn Online P&C Insurance Co. Ltd., China's first internet-only insurer, was fined 1.45 million yuan ($223,800) for deceiving policyholders, breaking the limits of insurance premiums and compiling false statements and data.

In 2019, the CBIRC received 19,900 complaints from internet insurance consumers, up 88.6% from the previous year. Among the complaints, misleading sales practices and disguised forced tie-in sales were prominent problems.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)

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