Submitted Comments to CBIRC on the on Measures for Supervision of Internet Insurance Business (Draft for Comments)

2020-10-28 | Beijing, Shanghai

In general, the Insurance WG urges that liberalisation for the benefit of internet companies must go hand in hand with liberalisation for insurance companies. Insurance companies need a level playing field with dotcoms, to be allowed to conduct nationwide online business without being restricted by the system of traditional branch licenses, which is rooted in the offline world. In the absence of such a level playing field it is extremely likely that the market power of the big dotcoms will further increase, putting them in a position to dictate their terms on big parts of the insurance industry. Moreover, small, and mid-sized insurers without nationwide branch offices will not be attractive partners for dotcoms. The working group is concerned that this setting can trigger further concentration within the insurance sector.

Detailed comments on the draft regulation was also made.