Best’s News & Research Service - May 18, 2017 10:35 AM (EDT)
China’s Regulator Steps Up Inspections of Insurers Following Customer Complaints
BEIJING //BestWire// - The China Insurance Regulatory Commission has stepped up inspections on insurance companies’ consumer-related issues as part of the regulator’s investigation of market activities, according to a statement from the regulator.
In the past two years, the CIRC said it has investigated insurance companies’ consumer-related complaints and issues with stricter supervision for protecting policyholders’ interest. Local insurance authorities will conduct inspections on 16 branches of 45 insurance companies and seven bancassurance entities which have poor customer records.
The inspections will focus any violation of consumer’s rights such as mis-selling, false product and customer information, claims payment failure and case-by-case investigation of reported issues. The CIRC said it will enforce stricter supervision on sales activities and behavior of not only insurance companies, but also agents and intermediaries.
In 2016, the CIRC introduced the first insurance consumer confidence index in a bid to promote the sector’s improvement in services and product quality. The introduction of this index aims to push insurance companies for operational changes riding on consumer demand. The CIRC said this will enhance insurers’ obligation to protect consumer interests (Best’s News Service, April 8, 2016).
(By Iris Lai, Hong Kong bureau manager: Iris.Lai@ambest.com)