China: Supervision on life insurance is tightened
Judging from the fines issued by China Banking and Insurance Regulatory Commission(CBIRC) from January 1 to June 30 2021, it can be seen that its supervision of the insurance industry in 2021 has become increasingly strict.
According to data, in the first half of 2021, CBIRC issued 1,074 fines for insurance business, punishing institutions 679 times, and 789 responsible person and agents. The total fines amounted to 132 million, an increase of 9.6% over the same period last year.
From the perspective of insurance types, CBIRC has significantly tightened the management and control of life insurance. The data shows that although property insurance is still the main focus for supervision, the number and amount of fines received by life insurance in the first half of 2021 have increased significantly. CBIRC issued a total of 312 life insurance fine tickets, accounting for 29% of the total, an increase of 6% year-on-year; the total amount of the fines was 31.5 million yuan, an increase of 18% year-on-year.
From the perspective of punishment causes, material fraud and misleading sales are still the biggest problems in the insurance industry. According to statistics, in the first half of 2021, there were a total of 719 fines of insurance agency companies due to involving the preparation or provision of false materials, obstruction of supervision, and failure to use approved insurance clauses and expenses. At the same time, of the 15 insurance fines received by banks, there were a total of 8 related to misleading and deceiving policyholders and failing to perform the duty of notification.