CFIC Introduction
On April 24, the official website of the State Administration of Financial Supervision and Administration disclosed the "No. 1 fine" for 2024.
Original title: "Ticket No. 1" is here!
On April 24, the official website of the State Administration of Financial Supervision and Administration disclosed the "No. 1 fine" for 2024.
According to the Administrative Penalty Information Disclosure Form of the State Administration of Financial Supervision and Administration (Jin Jian Decision Zi [2024] No. 1), Zhongan Online Property Insurance Co., Ltd. (hereinafter referred to as "Zhongan Property Insurance") was fined 1.8 million yuan, and three relevant responsible persons were given warnings and fines.
Image source: Official website of the State Administration of Financial Supervision and Administration
Zhongan Property Insurance was fined 1.8 million yuan
According to the administrative penalty decision, Zhongan Property Insurance was fined 1.8 million yuan for four major violations of laws and regulations, including concealing related party relationships and related party transactions, falsely listing expenses through related parties, misreporting and omission in the statements submitted through the related party transaction supervision system, and using the investment assets formed by the use of insurance funds to issue loans to others.
Song Zhenhua, Daniel Zhang, and Li Gaofeng, then deputy general managers of Zhongan Property Insurance, were given warnings and fined 70,000 yuan, 100,000 yuan, and 70,000 yuan respectively.
According to the official website, Zhongan Property Insurance is the first Internet insurance company in China, which was inaugurated on November 6, 2013 and listed on the main board of the Hong Kong Stock Exchange on September 28, 2017. Zhongan P&C Insurance is headquartered in Shanghai, does not have any branches, and conducts its business entirely through the Internet.
According to the 2023 annual report, Zhongan Property Insurance will achieve a net profit attributable to the parent company of 4.078 billion yuan in 2023, turning losses into profits year-on-year. As of the end of 2023, Zhongan Property Insurance achieved a total domestic premium of 29.501 billion yuan, a year-on-year increase of 24.7%.
Resolutely supervise "long teeth and thorns", with edges and corners
Since the beginning of this year, the dispatched agencies of the State Administration of Financial Supervision and Administration have disclosed a number of fines, pointing to the chaos in the insurance industry.
From the point of view of the reasons for being punished, the preparation of false materials, false expenses and other stubborn diseases in the industry have become the focus of regulatory attention. Industry insiders believe that problems such as the preparation and provision of false reports are often related to the illegal payment of handling fees, the giving of benefits and rebates to policyholders other than those agreed in the insurance contract, and the root cause is the lack of differentiation of insurance products and services.
In addition to the fines imposed on insurance companies, the penalties for those responsible have also increased. According to the reporter's incomplete statistics, since 2024, more than 10 relevant responsible persons have been banned from entering the insurance industry to varying degrees, and those responsible have been banned from entering the insurance industry for life.
On March 15 this year, Li Yunze, Secretary of the Party Committee and Director of the State Administration of Financial Regulation, presided over an expert symposium and said that the next step is to resolutely achieve "long teeth and thorns" in supervision, firmly adhere to the bottom line of no systemic financial risks, make every effort to promote high-quality financial development, make overall plans to do a good job in the "five major articles", continue to deepen financial reform and opening up, and unswervingly follow the road of financial development with Chinese characteristics.
Source of this article: China Securities Journal
Author: Chen Lu
WeChat editor: Guan Qiao
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