Asian Tech Press -- China's banking and insurance regulator decides to tep up review and carry out a special campaign to regulate online insurance sector.
The Chinese state-owned Securities Times reported Wednesday that the China Banking and Insurance Regulatory Commission (CBIRC) has decided to carry out special rectification work on the disorder of online insurance.
In accordance with the requirements of "purifying the market environment" and "protecting the legitimate rights and interests of consumers", the CBIRC said that the rectification work will focus on the outstanding problems of the onlie insurance market and carry out special rectification work nationwide.
Affected by this news, Thursday afternoon, ZhongAn Online P&C Insurance Co. Ltd. (06060.HK), known as “the first stock of Internet insurance in China", its shares continued to fall, once fell 13% during the day. As of the close of trading, ZhongAn's stock price was at HK$37.8 per share, down 11.48%.
It is worth noting that in early August, ZhongAn was fined 1.45 million yuan by the CBIRC for deceiving policyholders, failing to use approved insurance terms and premium rates in accordance with regulations, and preparing or providing false reports, statements, documents and information, etc.
