Friday, September 22, 2017

Listed Chinese insurers to benefit from risk crackdown

The country’s four major listed insurers — China Life, Ping An, China Pacific and New China Life — are set to profit from China’s intensified drive to contain the sale of risky short-term life insurance policies, because they are less exposed to these products, according to analysts.

Since last year, China’s insurance watchdog has cracked down on the sale of such policies that are, in actuality, wealth management products.

Two of the companies hit by the industry-wide drive were Anbang Life and Foresea Life, which were caught using the proceeds of such sales to finance risky, high-yield investments.

The industry regulator has embarked on a massive crackdown, acting on fears that the practice could bring systemic risks to the financial industry in general.

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