BEIJING (Reuters) – China’s banking and insurance regulator issued draft rules on Monday to rein in risks accumulated in country’s booming online insurance sector.
The rules, on which the regulator is seeking public feedback till Oct. 28, will ban unlicensed institutions and individuals from participating the online insurance businesses, including selling and offering consultancy services of insurance products, according to a statement released by the China Banking and Insurance Regulatory Commission (CBIRC).
The rules will also require Internet companies to obtain insurance licenses before involving in the business, according to the draft.”The fast development in the online insurance sector has exposed certain problems,” the CBIRC said, “The rules are to effectively defuse the risks and protect the interest of consumers.”
The CBIRC said in a Sept. 3 article that thriving online mutual-aid platforms selling healthcare insurance need to be brought under specific regulations.
Xianghubao, operated by fintech giant Ant Group, and Shuidihuzhu of Tencent Holdings are the dominant online mutual-aid platforms selling healthcare insurance.
Reporting by Cheng Leng, Zhang Yan and Ryan Woo; Editing by Toby Chopra