The China Banking and Insurance Regulatory Commission has released a sweeping order that seeks to address improper practices in the online insurance industry, Bloomberg reported.
- The Chinese watchdog has ordered firms to address issues on improper marketing and pricing and boost privacy protection.
- The notice urges businesses to take the steps on a voluntary basis but warned that those that do not comply would face “severe punishment.” No details were immediately available.
- The latest development comes amid China’s crackdown on the financial technology sector that started this year, with the online insurance industry is poised to jump to 2.5 trillion yuan or $385 billion in 10 years.
China ended 2020 with 140 additional insurance companies that established a presence online. Total premiums for the year stood at 298 billion yuan.