China: Regulator tightens crackdown on errant internet insurance activities
Source: Asia Insurance Review | Sep 2021
The CBIRC is making internet insurance a major focus of its supervisory work, covering in particular misleading sales, forced bundling of insurance plans, high costs and illegal operations such as the leakage of information. These are areas where the frequency of violations is high.
The regulator recently issued its ‘Notice on Carrying out Special Rectification of Internet Insurance Chaos’ which says that in recent years, online insurance has moved into the fast lane. “At the same time, transgressions have been rampant,” stated the notice. It said, “Some internet platforms are suspected of illegally engaging in insurance business. Some insurance institutions have significant pricing risks in their Internet insurance products, lack sufficient offline service capabilities, engage in misleading sales, and generate complaints and disputes.
The remedial action targets product management, sales management, claims management, information security and other areas that are often chaotic.
The CBIRC encourages companies to address the violations voluntarily and says those that fail to comply will face ‘severe punishment’. A