China’s regulator to conduct inspections to weed out violators

Checks to target insurance companies and agents that have been subject of numerous customer complaints

China’s regulator to conduct inspections to weed out violators

Insurance News

By Gabriel Olano

The Chinese insurance regulator will carry out inspections of various entities to identify violators, correct market irregularities, and protect consumers’ rights, according to a statement released on Monday by the agency.

Local insurance authorities, on behalf of the China Insurance Regulatory Commission (CIRC), will conduct the spot checks from June to mid-October of this year, targeting 46 branches of 16 insurance companies, as well as seven part-time insurance agents, which have ranked poorly in terms of customer complaints over the past two years.

According to state media arm Xinhua, the inspections will identify violations such as fraudulent sales conduct, falsified or absent customer information, and failure to release insurance claims. The regulator will also launch case-by-case investigations into violations reported by the public, and penalise behaviour detrimental to customer interests.

“We will never compromise on matters of principle, and we will not disregard violations for any reason,” said the regulator in a statement.

The statement also urged tougher supervision on innovative or disruptive insurance businesses, and announced that the regulator will seek to standardise sales practices for insurers, as well as brokers, agents, and other intermediaries.

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