As China’s main anti-graft body investigates the head of the China Insurance Regulatory Commission (CIRC) on corruption allegations, experts say that this could lead to increased regulatory scrutiny on the insurance industry.
On Sunday, CIRC chairman Xiang Junbo was subject to an investigation by the Central Commission for Discipline Inspection (CCDI) for “serious disciplinary violations”, a term commonly used in lieu of corruption.
This could mean a shift in direction for the Chinese insurance industry, causing it to look more inward and moderate its expansion.
“China’s insurance industry has been developing too fast and aggressively since Xiang took office,” an anonymous executive at a major insurer told Reuters.
“Going forward, the CIRC would probably tighten regulations on the industry, in particular on insurers’ solvency and their universal life products,” the executive added. “The whole industry is likely to become more traditional and conservative than before.”
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