The Chinese insurance regulator has tightened rules for the sale of insurance policies online to regulate market order and mitigate risks.

According to the China Banking and Insurance Regulatory Commission (CBRIC), insurers that meet the relevant requirements of adequate solvency, comprehensive ratings and reserve funds can conduct online life insurance business.

The technical, operational, and service capabilities required by insurers to offer online services have also been updated.

The regulator stated that ‘improper innovations’ and ‘disorderly competition’ have impacted the rights and interests of consumers.

CBRIC seeks to improve and strengthen the online life insurance business in the country. It requires online insurers to meet the requirements before 31 December 2021.

The insurers that fail to meet the relevant conditions set out by CBRIC will not be allowed to conduct business online.

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The insurers will be allowed to sell accident, health, term life insurance and annuity insurance offering among others.

The Chinese authorities have been tightening their grip on the insurance industry as part of a wider crackdown on the financial services industry.

Earlier this month, media reports emerged that China is scrutinising the country’s top financial regulators, state-owned lenders, insurance firms and asset managers to root out corruption.

CBIRC is also part of 25 financial institutions, which will be investigated by China’s corruption watchdog Central Commission for Discipline Inspection (CCDI).