Long-Awaited Internet Insurance Regulations Issued by China
Published By : 06 Aug 2015 | Published By : QYRESEARCH
On 23rd July, the Interim Supervisory Measures on Internet Insurances Business Measures were circulated by the China Insurance Regulatory Commission or CIRC. These interim measures will come into force on October 1st this year. According to reports, the measures will remain effective for 3 years at least. Hence, the implementation of the new measures will supersede former supervisory measures on the Insurance Agencies’ Internet Insurance Business on 1 October 2015.
The Interim Supervisory Measures apply to insurance businesses that conclude contracts with customers through self-operated or third-party online platforms, using either mobile or internet communication technologies. The measures also apply to the sale of insurance products through popular apps, social network platforms, and tools of instant messaging.
The measures also lays down the provisions for insurance companies to engage in the internet insurance business. For instance, the measure necessitates the insurance companies to be duly registered in China and licensed by CIRC to carry on insurance businesses through online platforms in China. It also applies to the insurance intermediaries such as loss adjuster, broker, or agency whose operational area has been approved who may intent to extend to locations outside the specific geographic periphery.
The measures will make it mandatory for insurance companies across China to take the responsibility for and manage activities operational in internet insurance covering underwriting, sales, claims handling, managing complaints, policy cancellation, and other customer services offered by these institutions. The measures lay down that a third-party online platform that has not obtained proper insurance intermediary license from the CIRC, may carry out operations and provide technology support but only ancillary services. The measures forbid such institutions from engaging in any of the above mentioned operations. The measures allow insurance companies to only operate in the provinces where its operations and branch companies are licensed.