Banks to be more selective of insurance partners

| BY

Janice Qu

New rules highlight risk control for insurance sales at banks

Insurance companies selling products through banks may face difficulties as lenders become more cautious when choosing insurance partners.

The China Banking Regulatory Commission (CBRC) has tightened up rules regulating the sale of insurance by banks. The new rules emphasise risk control, now requiring banks to clarify for customers all the risks related to the insurance products and prohibiting the sale of the insurance products together with deposits. Insurance company salespeople are banned from being based at bank branches and each bank branch can only sell the insurance products of no more than three insurance companies.

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