China tightens rules for online insurance sales

Insurance firms were ordered to comply or stop selling insurance online by January.

China has laid down tighter rules for selling life insurance online as it aims to eliminate irregularities in the industry.

The China Banking and Insurance Regulatory Commission (CBIRC) released the new stricter rules last 22 October that state that qualified insurers and brokers will only be allowed to sell online life insurance nationwide provided they meet requirements such as a 120% minimum solvency ratio for four consecutive quarters.

The new rules have also put a limit on what products could be sold online, including accident cover, health insurance, as well as term life insurance and several others.

Insurance firms will have until the end of the year to comply or be ordered to stop selling insurance products online by 1 January.