Three insurers in China have been barred from issuing new products for six months by the country’s insurance regulator.
In a notice posted by the China Insurance Regulatory Commission (
CIRC) on its website, it announced that Bank of Communications Life Insurance, ABC Life Insurance, and Greatwall Life Insurance, have violated certain regulatory provisions. As penalty, the three companies will not be able to introduce new insurance products for six months.
According to a report by Chinese state media arm
Xinhua, CIRC investigators found “serious and severe” issues with the design and management of several products from the offending insurers. The companies were then ordered to recall the “problematic” products and correct their mistakes.
The CIRC added that it will continue to tighten its supervision of China’s burgeoning insurance industry and punish wrongdoers.
Since last year, China has intensified its drive to correct the path of its insurance industry and minimise financial risks. Regulators are working to steer the sector back to its original mission of providing protection and long-term security and discourage the use of insurance to gain short-term profits.
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