China Insurance Regulatory Commission opens 9 tickets to crack down on chaos

The China Insurance Regulatory Commission recently issued nine administrative penalties. The penalties refer to the auto insurance chaos, involving PICC P&C, TPI, Pacific Insurance, and Ping An Insurance.

In recent years, the auto insurance market has been particularly prone to carry out vicious competition problems with high costs. Remediation of chaotic conditions such as false declarations in the auto insurance market has become one of the key tasks of the CIRC in 2018.

The reasons for sorting out the above-mentioned insurers were all given or promised to give policy holders insurance contracts other than insurance contract kickbacks or other benefits as well as the preparation of submitted false statements.

The administrative penalties decision shows that from November 2016 to June 2017, PICC P&C carried out a marketing campaign to collect deductions from commercial automobile insurance premiums on a car insurance platform. PICC P&C pre-paid funds are used to purchase Jibaibao from a certain set of branches and treasure companies. After a certain set of branches and treasure companies receives payment, the corresponding number of set points will be issued to the Jichaobao account under PICC P&C Insurance. PICC P&C uses the above-mentioned collection points treasure to deduct a portion of the premium directly when the customer pays commercial automobile insurance premiums.

The above situation is not an exception. Pacific Property Insurance and Taiping P&C Insurance both have the use of collection sub-bonds to offset premiums, while Ping An and P&C Insurance donated targeted credits to certain insurance companies to purchase car insurance premiums. .

In addition to the vicious price competition, the four property and casualty insurance companies have also submitted serious false statements. The concrete manifestations are the manipulation of financial data, manual accounting, and non-performing insurance business rules, which aim to evade supervision.

From the punishment point of view, the CIRC imposed double penalties on top executives and institutions, and adopted the heads of PICC Sichuan Branch, TPI Sichuan Branch, Pacific Insurance Fujian Branch, and Pingan Insurance Sichuan and Ningbo Branch. Revocation of qualifications and other penalties, and ordered the five branches to stop accepting new commercial motor insurance business for three months.

According to the relevant person in charge of China Insurance Regulatory Commission, PICC, Pacific Insurance, Pacific Insurance, and Ping An Insurance are the main participants in the automobile insurance market. Investigation and punishment according to law are conducive to the formation of shocks and ensure the smooth and healthy development of the market.