China reports rise in insurance industry complaints for first half

China reports rise in insurance industry complaints for first half | Insurance Business

China reports rise in insurance industry complaints for first half

China’s insurance regulator has reported an increase in complaints against industry players for the first half of 2019.

The China Banking and Insurance Regulatory Commission (CBIRC) and its local bureaus registered a total of 48,194 cases from January to June, Xinhua reported. Among these cases, 46,911 involved contract disputes, which increased by 0.03% year-on-year.

Meanwhile, suspected violations of insurance laws and regulations in the first half amounted to 1,283 cases, or 27.8% higher than the same period last year.

Most of the complaints were regarding insurance claims and sales of insurance products, the report added.

Read more: China to increase scrutiny of insurers’ related-party transactions

According to the CBIRC, it has fined erring insurance companies a total of RMB76.8 million (around US$10.8 million) from January to August, partially reflecting the increase in violations registered in the first half.

In recent years, Chinese regulators have increasingly tightened supervision of the financial industry, in order to fend off risks that emerged during several years of unfettered growth. Several high-profile investigations of insurance companies have taken place, with several erring executives removed from their posts or even jailed.