The China Banking and Insurance Regulatory Commission (CBIRC) has called on online insurance firms to conduct self-assessments to identify violations and make corrections.
According to Regulation Asia, the move is part of a broad rectification program for the online insurance industry that will require online insurers to conduct self-checks to discover violations, make immediate corrections and hold the responsible people to account.
The publication also mentioned that the move by the CBIRC is a response to the frequent occurrence of chaos in product management, sales management, claims management and information security.
Furthermore, the CBIRC said that specific online insurance platforms have been suspected of engaging in insurance operations illegally.
The CBIRC has detailed that online insurers are required to conduct self-checks of their companies to identify weak links and violations that are in need of rectification. Such work will focus on forced linking of product sales to other products, inappropriately high fees, misleading sales, illegal operations and user data leakage.
Following such self-checks, the local bureaus of the CBIRC will select internet insurers with big problems for further inspections.
The CBIRC commented, “Some insurance institutions have problems such as outstanding pricing risks of Internet insurance products, insufficient offline service capabilities, and many complaints and disputes, which urgently need to be regulated and rectified.”
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