CBIRC to further supervise online business

In order to strengthen and improve the supervision of online personal insurance business, ensure market order and prevent business risks, the China Banking and Insurance Regulatory Commission, recently issued a notice on further regulating online personal insurance business of insurance institutions, in a bid to promote fair competition and effectively protect the legitimate rights and interests of insurance consumers.

As a supporting supervisory document, the Notice focuses on the risks and misconducts in the field of online personal insurance, and unifies the operation and service standards of the innovative channels. It aims to support insurance companies with strength and capability, which abide by the rules and regulations and prioritise services, to provide high-quality and convenient insurance services for the public by using the Internet, big data and other technologies.

There are 22 articles in the Notice, which are divided into three parts. The scope of online personal insurance business that insurance companies are engaged in is clarified, and the rules for developing online personal insurance products are refined, so as to strengthen the supervision of business activities via online channels. The Notice aims to solve the problems of inaccurate pricing, inappropriate marketing, and inadequate management and services of online insurance products.

Going forward, the CBIRC will continue to improve the online insurance supervision and regulate business conducts. The main responsibilities of business providers will be enforced, so as to maintain market order and effectively protect the legitimate rights and interests of insurance consumers, and promote the high-quality development of online insurance business.