State Administration of Financial Regulation: Strengthening regulation of non-vehicle insurance business.

On October 10, the China Banking and Insurance Regulatory Commission issued a notice on strengthening the supervision of non-auto insurance business. It mentioned that property insurance companies should scientifically determine insurance rates following the principles of fairness, reasonableness, and adequacy. They should also set reasonable scheduled additional rates and commission levels, and should not set high fees that do not align with the services provided. The main insurance actuarial report and supplemental insurance filing materials should clearly list scheduled additional rates, average commission rates, and maximum commission rates per policy. Property insurance companies should establish a mechanism for regularly reviewing and dynamically adjusting rates. If there is a significant deviation between actuarial assumptions and actual operating conditions, adjustments should be made promptly, and products may need to be temporarily suspended if necessary. The notice focuses on regulating the non-auto insurance business for property insurance companies to maintain the rights of insurance consumers. It also aims to promote high-quality development in the property insurance industry. The notice specifies the scope of non-auto insurance business, optimizes evaluation mechanisms, strengthens rate management, enforces the use of terms and rates set in filings, and enhances the management of insurance intermediaries. The notice emphasizes the importance of proper management and transparency in the operation of property insurance companies, as well as strengthening oversight of market behavior to ensure fairness and protection of consumer rights. Additionally, it calls for industry organizations to support these efforts and contribute to the promotion of standardized practices and high-quality development in the non-auto insurance sector. The notice will be effective starting from November 1, 2025, and will replace the previous regulatory notice on non-auto insurance business issued by the China Insurance Regulatory Commission.