Insurance regulator targets malpractice
October 31, 2006 | BY
clpstaff &clp articles &The China Insurance Regulatory Commission (CIRC) issued a notice on October 10 2006, seeking public opinion on a draft regulation aimed at eradicating…
The China Insurance Regulatory Commission (CIRC) issued a notice on October 10 2006, seeking public opinion on a draft regulation aimed at eradicating malpractice in insurance companies.
Under the draft regulation, the CIRC will require insurers to submit a report on April 30 each year which summarizes employees' performance, particularly their observance of the industry's ethics and laws. The CIRC also plans to require each company to appoint a person to oversee in-house disciplinary inspections; he/she will report to the general manager and top management team.
Insurance companies are also expected to establish independent policies and measures to punish employees who violate the regulations and policies, and to file such measures with the CIRC.
The notice has put insurers on alert to monitor employee behaviour, such as when they are engaging in, developing and publicizing new insurance products, and dealing with customers.
Xinhua reports that so far, 53 of 82 Chinese insurers surveyed have established a special department to prevent in-house malpractice.
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