Insurance regulator draws the line on ‘special companies’
The move comes as the CIRC seeks to rehabilitate its image after its former head was expelled for corruption charges
China’s top insurance regulator said it will treat all market entrants and insurance companies fairly, and will prevent “special companies” from forming, according to the interim head of the regulatory body, Caixin reported on Monday.
Chen Wenhui, vice chairman of the China Insurance Regulatory Commission, said the role of the commission is to regulate, not to engage in enterprise work, as he sought to clean up the image of the commission in a guidance to party members and employees, the Caixin report added.
The former head of the commission, Xiang Junbo, had been expelled from the Communist Party on Saturday, for “committing serious violations of political discipline and rules,” after being investigated for bribery and corruption charges.
Chen was assigned as interim leader of the CIRC after Xiang was removed from his official position in April.
Other than regulation being the focus of the CIRC, Chen also said that the commission should be clear on its “bottom limits,” draw clear “red lines” and “strictly regulate,” as the commission seeks to rehabilitate its image, according to the Caixin report.
Chen also reiterated that insurance products are primarily a consumption good, not an investment product, a clear signal to the market where insurance companies have often peddled high yielding but risky products to entice consumers, the report added.