The Chinese insurance regulator, including local regulatory bureaux, have imposed more than 560 fines on errant insurance entities in the first five months of this year, 30% more than in the corresponding period in 2017. The fines totalled at least CNY90 million ($14 million).
The main grounds for imposing the fines included mis-selling, false information, and products that failed to meet regulatory requirements.
In addition, in the first five months of this year, the insurance regulator issued a total of 25 administrative penalties and 34 regulatory letters, compared with 16 administrative penalties and seven regulatory letters during the corresponding period last year.
Furthermore, the various insurance regulatory bureaux across China issued a total of 504 tickets for infractions from January to May, confiscating at least CNY58.6 million and collecting penalties of CNY16.8 million. The majority of the problems revolved around inappropriate classification of insurance products, unclear policy terms and incomplete terms and conditions.