Tuesday, September 26, 2017

CIRC crackdown hits universal life sales

China’s insurers saw their universal life insurance sales drop 59% year-on-year during the first five months of 2017 on the back of an aggressive campaign to tame market players.

Official data from the China Insurance Regulatory Commission shows that life insurers in China pulled in only Rmb308.4 billion (US$45.36 billion) from products related to universal life in the Jan-May period.

The dip in sales comes at a time when CIRC is implementing an extensive regulatory clampdown on the excessive use of universal life products.

As a result of this crackdown, a few insurers have been already been punished for having issued higher-yielding products to raise funds to acquire stakes in market-listed companies.

For example, Anbang Life was prohibited from applying to issue new products for three months in May.

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