(Yicai Global) Aug. 18 - WeSure, an insurance platform of Shenzhen-based internet giant Tencent Holdings, was fined CNY120,000 (USD17,288) by local authorities for illegal marketing. Two of its executives were also fined CNY20,000 (USD2886) each.

WeSure drew official fire for using the word “get” instead of "buy insurance" on a promotional mobile page along with advertisement “only x-amount left” without sufficient guidance for customers to complete a health declaration truthfully, Shenzhen’ banking and insurance regulator said yesterday.

The agency turned up the issues during a routine inspection in November, finding problems had arisen with the marketing methods of these products from July to November, WeSure told Yicai Global. The company went all out to address these issues and set up a special rectification team in the same month, removing all such ads and improving its system and procedures.

Founded in 2016, WeSure mainly relies on Tencent's flagship social software WeChat to sell auto, health, life, travel and accident insurance. Its platform had over 55 million registered users by its second anniversary and it has provided coverage to 25 million, data WeSure released in November show.

China’s online insurance has ballooned recent years. The country’s internet life insurance premiums swelled by 55.7 percent yearly to CNY185.8 billion (USD26.8 billion) last year. But alarm has been growing over problems with the sector’s abnormal development. Regulators fielded 19,900 internet consumer insurance complaints last year in an 88.6 percent annual rise. Misleading sales and disguised tying were outstanding issues, information from the Insurance Association of China shows.

Editor: Ben Armour