CIRC blows whistle on erring insurance companies

Several insurers warned or fined as part of efforts to clean up financial sector

CIRC blows whistle on erring insurance companies

Insurance News

By Gabriel Olano

The China Insurance Regulatory Commission (CIRC) has issued several regulatory letters and an administrative penalty decision aimed at several insurance firms that were found to have committed violations.

Sunshine Life Insurance, Taikang Life Insurance, and Ping An Life Insurance of China, were issued regulatory letters by the commission, due to unqualified telephone and internet sales practices.

Meanwhile, Yong An Insurance, which formed a business department without gaining the regulator’s approval, was slapped with an administrative penalty. According to the Asia Times, Yong Ming, the insurer’s general manager, was fined RMB140,000 (US$21,100) and issued a warning. The penalty for forming an unauthorised department was RMB210,000 (US$31,900), while providing false information resulted in an additional RMB350,000 (US$53,140) fine.

According to data released by the CIRC, as of September 2017, the insurance watchdog has released a total of 25 regulatory letters and 27 administrative penalties. The increased activity of the CIRC is seen as part of Beijing’s intensified drive to clean up the financial sector and rein in erring firms, following a massive scandal last year, culminating in the expulsion and arrest of Xiang Junbo, former CIRC chairman, on corruption allegations.

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