China Tightens Online Insurance Rules in Widened Crackdown
- Lays out regulations to root out ‘disorderly’ competition
- Rules could slow growth in market with $391 billion potential
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China tightened rules for online insurance sales, seeking to root out irregularities in a burgeoning business that has bolstered platforms like Waterdrop Inc. and Huize Holding Ltd.
The new regulations allow qualified insurers and brokers to sell online life insurance nationwide while banning those that fail to meet requirements including a 120% minimum solvency ratio for four consecutive quarters, according to rules released Friday by the China Banking and Insurance Regulatory Commission.