China’s insurance regulator said that it will treat all insurance companies and industry entities fairly, as well as prevent the formation of “special companies”, according to its interim chief.
Chen Wenhui,
CIRC vice chairman, said that the commission’s role is to regulate the insurance industry and not engage in business. The organisation is currently rehabilitating its image after the scandal involving its former chief, reports Chinese financial publication
Caixin.
The announcement comes after Xiang Junbo, former chairman of the China Insurance Regulatory Commission (CIRC), was formally expelled from the ruling Communist Party and charged with corruption. Chen became interim head of the CIRC in April after Xiang was removed from his post.
Aside from regulation, Chen said that the commission should clearly define its “bottom limits” and draw “red lines”.
He also stressed that insurance products are first and foremost a consumption good, and not an investment product. The statement sends a strong signal to insurance companies, several of which have aggressively sold high-yielding but risky products to attract customers.
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