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China enhances accident insurance regulations

(chinadaily.com.cn)
Updated: 2009-09-25 15:58

The China Insurance Regulatory Commission (CIRC) has created new standards in the country's personal accident insurance sector, which has long been criticized by customers, according to a recent report.

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Insurers are being ordered to restrain their branches and agents from illegal actions via uniform coding mechanisms on personal accident insurance policies, establish connections among policy providing systems, policy management systems and core business systems, as well as enhance management on financial affairs.

Insurance firms also have the responsibility to require their agents to sell valued polices of personal accident insurance in line with face premiums, said the CIRC.

The CIRC has found many problems in this sector, such as random prices, unauthentic operating data, lack of control over distribution networks, incomplete information systems, and false polices.

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The full text is available in the September Issue of China Insurance. Please visit E-Shop for more subscription details.