China releases new ‘blacklist’ for life insurance products
Nine clauses were added to the 73 that were on the list in 2021.
The China Banking Insurance Regulatory Commission’s (CBIRC) Life Insurance Department has released its 2022 ‘blacklist’ for life insurance products.
Nine new clauses were added to the 73 that were on the list in 2021, making the total number of clauses on the blacklist to 82.
The blacklist covers four aspects, namely, presentation of product terms, product rate determination and actuarial assumptions, design of product liability and product submissions.
The new clauses cover matters on COVID-19 quarantine insurance in which compensation is payable by the insurer throughout the duration of the quarantine and insurer clauses that stipulates non-guarantee of renewal of short-term health insurance products.
It also blacklists insurance products that have vague waiting periods for insurance policies to take effect and those with confusing terms in medical insurance policies like ‘malignant tumour’ or ‘severe malignant tumour’ as well as those life insurance products with calculation of its cash value does not conform to the general actuarial principles with risk of treating long-term insurance on a short-term basis.
CBIRC’s blacklist of life insurance products is a yearly release to help enhance effective product supervision. CBIRC urges insurance firms to examine the new list so that they may remove insurance products that do not conform to the requirements.
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