(Yicai Global) June 15 -- China’s top financial regulator has penalized some 52 insurance companies so far this month, including four large property insurers, for outlawed practices such as giving complimentary gifts to customers.
As of yesterday, the China Banking and Insurance Regulatory Commission had issued 52 penalty letters to insurers in June, the Securities Daily reported. Each was fined more than CNY300,000 (USD46,700) for giving customers perks such as gas filling cards and loyalty point coupons not included in their car insurance policies.
Oversight of the sector remains vigilant. An official notice issued last year banned vicious competition, fictitious charges, data fraud, free gifts, and cooperation with unqualified institutions.
The CBIRC also punished a number of insurers this month for falsely hiking costs, making up materials and financial data, and obtaining unfair benefits for other agencies and individuals. They listed fake expenses in order to present customers with gifts.
Editor: Martyn Cartwright