Nineteen insurers have been found guilty of product irregularities, in the latest measure by the authorities to reduce risk in China's financial system and tighten the regulatory environment, reported Reuters citing the CIRC.
The insurance regulator said in a post on its website that it had found problems with 8,495 products, including unclear and incomplete statement of terms, improper classification and not making clear the terms that reduce insurer liability, among other things.
“The problems reflect the lack of responsibility of some companies in product management,” said the CIRC. It listed the irregularities found and provided instructions on how to alleviate them.
In December, the CIRC said it would restrict the business of insurers which have a low rating for asset liability management.