The China Banking and Insurance Regulatory Commission (CBIRC) has just issued new regulations that target risk issues in the online insurance sector, while also spurring the adoption of the latest technologies.
CBIRC announced on 14 December that it had issued and implemented the “Internet Insurance Operations Regulatory Measures” (互联网保险业务监管办法), in order to “effectively prevent risk and protect the lawful rights and interests of consumers.”
CBIRC said that Internet insurance operations in China had “seen rapid growth, as well as exposed a number of problems and risk hazards that bring challenges to the sector and regulators.”
Key contents of the new regulations include:
- Clarifying the nature of Internet insurance operations, and clarifying applicable regulations and dovetailing policies;
- Stipulating Internet insurance operating requirements, strengthening licensed operation principles, defining licensed institutions as independently operating online platforms, stipulating operating conditions for licensed institutions, and clarifying prohibited conduct for non-license holding institutions;
- Standardising insurance sales and promotional conduct, and stipulating management requirements and operational standards;
- Stipulating separate “special operating regulations” for online insurance companies, insurance companies, insurance intermediary institutions, and online enterprises that engage in insurance operations as agents;
- “Banking category part-time insurance agency organisations” are permitted to engage in online insurance operations;
- Integration of insurance with new technologies including the big data and the blockchain is encouraged by regulators.
CBIRC previously released a draft version of the Measures for the solicitation of opinions from the public during the period from 28 September to 28 October.