China's insurance regulator plans to identify and punish insurers who break the country's laws, China Daily has reported.01 Sep 2017
The China Insurance Regulatory Commission signed a memorandum of understanding (MoU) with 30 ministries and regulators including the People’s Bank of China, and the National Development and Reform Commission to tackle illegal activities in the insurance sector and "hold wrongdoers accountable", China Daily said.
Insurers who are found to have broken the rules will be restricted from setting up banking, securities or insurance businesses in future and from any government procurement or subsidy schemes, the news site said.
The regulators will also take records of rule breaking into account when approving share sales or allowing access to bank loans and foreign exchange, and will disqualify the individuals from senior executive roles at financial institutions and state-owned enterprises.
Liang Tao, vice chairman of the Commission told China Daily that the MoU will increase regulatory deterrence and effectiveness and aid the development of a credit system for the insurance industry.