Risk control is key for insurance players when dealing with brokers

Insurance companies need to keep a tight rein on risks as their selection of available brokers widens, increasing costs and liabilities.

More financial institutions will be allowed to engage in the insurance brokering business by the end of this month. The China Insurance Regulatory Commission (CIRC) announced its planned revision on April 7 2011, which is open for public comment until April 27 2011. The draft regulation says that non-insurance institutions, including securities and trust companies, can participate in the sector, but that stricter regulatory scrutiny is required.