China strengthens regulation of online property insurance firms

BEIJING, Aug. 9 -- China's National Financial Regulatory Administration on Friday announced guidelines aimed at strengthening the regulation of online property insurance companies.

Traditional property insurance companies that offer online property insurance services must have maintained a comprehensive solvency adequacy ratio of at least 120 percent for the most recent four consecutive quarters, according to the guidelines.

Other criteria include maintaining a core solvency adequacy ratio of at least 75 percent and a risk rating of B or above for the most recent four consecutive quarters.

Property insurance companies that offer agricultural, marine or special-risk insurance should not expand their service areas via the internet, per the guidelines.

They also state that online property insurance services must display the required procedures for contract revisions, cancellations, claim processing and complaint handling.

The Chinese government implemented a set of regulations for online insurance services in 2021, aiming to mitigate financial risks, safeguard consumer interests, and enhance the insurance sector's role in serving the economy and society.