China Financial Supervisory Authority: Strengthening supervision of non-car insurance businesses
The Zhitong Finance App learned that on October 10, the China Financial Supervision and Administration issued the “Notice on Matters Relating to Strengthening the Supervision of Non-Auto Insurance Businesses”, which mentions that property insurance companies should follow the principles of fairness, rationality and sufficiency to scientifically determine insurance premiums, reasonably set predetermined surcharges and handling rate levels, and must not set high fees that are inconsistent with the services provided. The main insurance actuarial report and additional insurance filing materials shall clearly indicate the predetermined surcharge rate, average handling fee rate, and the upper limit of the order-by-order handling rate. Property insurance companies should establish a mechanism for regular rate traceability and dynamic adjustment. When the deviation between actuarial assumptions and actual operating conditions is too large, they should promptly adjust and re-file records, and stop selling related products first if necessary.
The original text is as follows:
Notice of the State Financial Supervisory Administration on matters relating to strengthening the supervision of non-car insurance businesses
Various financial supervisory authorities, property insurance companies, insurance intermediaries, banking insurance companies, Shanghai Insurance Exchange, Insurance Industry Association, Association of Actuaries:
In order to strengthen the supervision of non-car insurance business of property insurance companies, protect the legitimate rights and interests of insurance consumers, and promote the high-quality development of the property insurance industry, the relevant matters are now notified as follows:
I. Clarify the scope of regulation
The non-vehicle insurance business referred to in this notice refers to property insurance business other than motor vehicle insurance. Where agricultural insurance or export credit insurance are otherwise stipulated, its provisions shall apply.
II. Optimizing the Assessment Mechanism
Property insurance companies should reasonably reduce the assessment requirements for premium scale, business growth rate, and market share in accordance with high-quality development requirements, and effectively increase the assessment weight for compliant management, quality and efficiency, and consumer rights protection. Property insurance companies should combine market carrying capacity with their own development foundation, rationally plan the development of non-auto insurance businesses, and accelerate the shift from pursuing scale and speed to pursuing quality and efficiency.
III. Strengthening rate management
Property insurance companies shall follow the principles of fairness, rationality, and sufficiency to determine insurance premiums scientifically, reasonably set predetermined surcharges and handling rate levels, and shall not set high fees that are inconsistent with the services provided. The main insurance actuarial report and additional insurance filing materials shall clearly indicate the predetermined surcharge rate, average handling fee rate, and the upper limit of the order-by-order handling rate. Property insurance companies should establish a mechanism for regular rate traceability and dynamic adjustment. When the deviation between actuarial assumptions and actual operating conditions is too large, they should promptly adjust and re-file records, and stop selling related products first if necessary.
4. Use of strict terms and rates
Property insurance companies should continue to strengthen the standardized use of main insurance and additional insurance terms and rates, and strictly implement the registered insurance terms and insurance rates. Property insurance companies and insurance intermediaries shall not substantially change the liability of the registered insurance terms through special agreements, approvals, agreements, memorandums, etc., and shall not adjust insurance premiums in disguise by splitting the subject matter of the insurance, splitting the insurance amount, changing the attributes of the insured person, changing the nature of use of the subject matter, or increasing or reducing the deductible amount (rate).
5. Strengthen the management of insurance intermediaries
Property insurance companies shall fulfill their management responsibilities for insurance intermediaries, shall not entrust institutions without legal qualifications to carry out insurance sales activities, and shall not pay handling fees to institutions that do not have legal qualifications. Insurance intermediaries shall cooperate with property insurance companies to implement various regulatory requirements, set a handling fee level that matches the value of the services provided, truthfully and reasonably account for all income and expenses, and strictly prohibit off-account operations.
6. Standardize operation and management expenses
Property insurance companies should take financial regulations seriously and pay for all operating and management expenses according to the principle that substance is more important than form. Property insurance companies should strengthen the accounting and control of handling fees, and intermediary fees paid for insurance sales must not exceed the upper limit of the handling fee rate for product reporting. Handling fees must not be paid in disguise through publicity fees, technical support fees, prevention fees, etc., and fees must not be withdrawn through false intermediary services, false fees, etc., to break through the upper limit of the reporting fee rate in disguise.
7. Improve premium income management
The property insurance company shall issue an insurance policy and issue a premium invoice to the customer after collecting the premium. When carrying out Internet non-car insurance business, property insurance companies should promptly collect core business information such as insurance customer information and ensure that the information is true, accurate and complete. For engineering insurance and other businesses where premiums exceed a certain amount and actual installment payments are required, property insurance companies shall carry out internal audit procedures and may agree on the validity of the insurance contract or liability for compensation with the policyholder based on the premium payment status. Property insurance companies should strengthen the management of premiums receivable, improve information systems, optimize rules and regulations, internal control procedures, and assessment policies, and control the risk of premiums receivable at the source. Insurance intermediaries shall cooperate with property insurance companies to implement relevant requirements, and shall not disrupt the market order by advancing premiums or guiding policyholders to defer payment of premiums.
8. Strengthen the management of approval refunds
Property insurance companies should continue to improve the level of internal control and management of non-car insurance businesses, strengthen the management of approval refunds. In principle, the authority to review the correction business should be concentrated on the head office or provincial branch, and the review process and standards should be clarified. Property insurance companies should strengthen the audit and audit of non-car insurance businesses, and seriously deal with institutions and personnel that extract funds through false approval refunds, false charges, etc., in accordance with the law and regulations.
9. Strengthen supervision of market behavior
Agencies dispatched by the General Administration of Financial Supervision at all levels should strengthen the monitoring of the operating indicators of property insurance institutions under their jurisdiction, and promptly carry out supervisory interviews, on-site inspections, etc. for property insurance institutions where the handling rate exceeds the product filing level or where the comprehensive fee rate changes abnormally. Supervisory measures or administrative penalties shall be imposed in accordance with law when it is discovered that property insurance institutions have failed to use the rates set forth in the filing clause and prepare or provide false reports, statements, documents, data, etc. in accordance with the regulations. Joint investigation and treatment of issues relating to property insurance institutions and insurance intermediaries should be strengthened.
10. Safeguarding the legitimate rights and interests of consumers
Agencies dispatched by the General Administration of Financial Supervision at all levels should push property insurance institutions under their jurisdiction to improve non-car insurance business underwriting and claims services, enhance the effectiveness of supervision, promote the development of non-car insurance businesses in the direction of adequate protection, reasonable pricing, market standards, and excellent service, and strive to enhance consumers' sense of acquisition. Property insurance institutions must not lower normal insurance service standards in the name of pressure reduction costs, etc.
11. Play the role of industry organizations
Relevant industry organizations should actively cooperate to strengthen the supervision of non-car insurance businesses. Insurance industry associations should promptly study and formulate industry model clauses, industry standard clauses, self-regulatory guidelines for underwriting claims, etc., to do a good job of self-regulatory management of non-car insurance. The Association of Actuaries should promptly calculate and establish the pure risk loss rate of industry benchmarks to improve the standardization of industry pricing. Banking insurance companies should play the role of a service platform for the insurance industry, continue to improve the intelligent inspection system for property insurance products, promote the construction of non-car insurance business platforms and related data standards, support the implementation of non-car insurance supervision requirements, promote sharing of information industries such as claims processing and anti-fraud, and provide effective support for the high-quality development of non-car insurance. The Shanghai Insurance Exchange will play a role such as a national security and liability insurance information sharing platform, improve the security and liability insurance information sharing mechanism, and support the development of safety and liability insurance and accident prevention work standards.
12. Others
This notice will take effect on November 1, 2025. The “Notice of the China Insurance Regulatory Commission on Issues Relating to Regulating Non-Vehicle Insurance Business” (Insurance Supervision and Industrial Insurance (2007) No. 400) was also abolished.
State Financial Supervisory Authority
September 30, 2025
The State Financial Supervision and Administration issued the “Notice on Matters Relating to Strengthening the Supervision of Non-Vehicle Insurance Businesses”
In order to strengthen the supervision of non-car insurance business of property insurance companies, promote rational competition, reduce costs and increase efficiency, improve quality and expansion of non-car insurance businesses, protect the legitimate rights and interests of insurance consumers, and promote the high-quality development of non-car insurance businesses, the General Administration of Financial Supervision recently issued the “Notice on Matters Relating to Strengthening the Supervision of Non-Auto Insurance Businesses” (hereinafter referred to as the “Notice”).
The “Notice” follows the work idea of risk prevention and strong supervision to promote high-quality development, adheres to problem orientation and goal orientation, focuses on issues such as irregular operation and irrational competition in the non-auto insurance sector, and focuses on strengthening requirements in six areas. The first is to optimize the assessment mechanism and promote the transformation of property insurance companies' non-car insurance business philosophy from pursuing scale and speed to pursuing quality and efficiency. The second is to standardize product development and use, strengthen insurance rate management, strictly implement registered insurance products, and promote the use of non-car insurance products to comply with the content of the filing. The third is to standardize the management of premium income, requiring property insurance companies to improve information systems, improve internal control mechanisms, and strictly manage financial resources at the source. Fourth, strengthen the supervision of market behavior, and take supervisory measures or implement administrative penalties in accordance with law against failure to use the rates in accordance with the regulations and prepare or provide false reports, statements, documents, data, etc. The fifth is to promote the improvement of non-car insurance claims services, improve the convenience of services, and enhance insurance consumers' sense of acquisition. The sixth is to give full play to the role of industry organizations in supporting services, promote the standardization of non-car insurance in an orderly manner, and provide strong support for improving the quality of non-car insurance operations and the effectiveness of supervision.
The publication of the “Notice” is an important initiative launched by the General Administration of Financial Supervision on the basis of in-depth research and extensive consultation. It is a comprehensive review and system optimization of non-car insurance supervision policies. Adhering to problem orientation, grasping market rules, and guiding rational competition, the “Notice” can effectively promote the high-quality development of non-car insurance businesses and provide more adequate and effective insurance coverage for the masses and the economy and society.
In the next step, the General Administration of Financial Supervision and Supervision will guide all dispatched agencies and property insurance companies to implement policies, steadily push for effective implementation of non-car insurance supervision requirements, better protect the legitimate rights and interests of insurance consumers, and achieve high-quality development of non-car insurance businesses.
This article was selected from the “Official Website of the State Financial Supervisory Administration”, Zhitong Finance Editor: Xu Wenqiang.