On Aug. 9, CHI NFRA strengthened supervision over online insurance.
CHI NFRA issued Notice on strengthening and improving the supervision of internet property insurance business, also published responses to reporters' questions.
Growth in online property insurance has revealed issues like poor risk control, insufficient offline services, non-compliant operations, misleading sales, complaints.
Key Measures
Clarify the scope of online property insurance business, ensuring consumers can independently access product information and complete insurance procedures online.
Companies are required to have sufficient solvency and a good risk rating to operate.
Limit expansion of some types of insurance like vehicle, agricultural, marine via online channels, while encouraging the development of small, convenient insurance products.
Detail requirements for operating rules, risk management, internal controls, and local services, focusing on establishing risk control systems, managing local agencies.
Encourages development of small, dispersed, convenient, inclusive property insurance products via internet; requires fair, reasonable setting of insurance terms and rates.
Insurance companies must establish comprehensive systems for contract modification, cancellations, claims, complaints; ensures lawful handling of personal data.
Corporate entities of property insurance companies are ultimately responsible for local services, bearing principal responsibility for handling consumer complaints, feedback.
Effectiveness
Companies shall fully comply with all requirements in this notice by Dec. 31, 2024.
