China:Many insurance companies suspend Internet insurance business

Fubon Property Insurance, Xintai Life and other insurance companies announced that they will suspend Internet insurance business from January 1, 2022.

According to the "Notice on Further Regulating Internet Life Insurance Business of Insurance Institutions" issued by the China Banking and Insurance Regulatory Commission on October 22, insurance companies (excluding Internet insurance companies) should meet the following requirements to conduct Internet life insurance business : The comprehensive solvency adequacy ratio for four consecutive quarters has reached 120%, and the core solvency is not less than 75%; the comprehensive risk rating for four consecutive quarters is at category B or above; the liability reserve coverage ratio for four consecutive quarters is higher than 100%; The insurance company’s corporate governance assessment is C (qualified) and above; other conditions required by the China Banking and Insurance Regulatory Commission.

It is understood that, in accordance with the recently released new regulations for the Internet life insurance business of insurance institutions, the above-mentioned companies have made the decision to suspend Internet business. According to industry analysts, according to the above requirements, it is expected that a group of insurance companies will temporarily be unable to carry out Internet life insurance business, or the sales of some Internet life insurance products will be affected.

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