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China Rectifies Insurance Market
China Insurance Regulatory Commission (CIRC) July 19 revealed that from January to June this year, CIRC inspected 186 insurance branches, 3 agencies and 4 foreign insurance companies, revoking 9 firms' qualifications as agencies, punishing 24 senior management staffs and annulling 9 persons' posts.
According to reports, by the end of 2000, among the 10,000 senior management staffs in various insurance institutions, 20 percent were appointed without inspection approval. Personnel's "impure behavior" resulted in occurrence of various problems. So far, China registers a total of 10,000 insurance institutions, 4 percent, namely 400 institutions, were set up in breach of regulations.
Ma Yongwei, chairman of CIRC said that many insurance sellers exaggerate insurance benefits or do not provide true functions about insurance besides adopting improper competition means to damage images of rivals.
In the meantime, China rectifies its insurance market, insurance industry also experienced a rapid growth in the first half of this year. According to statistics, total premiums by various insurance firms hit 102.23 billion yuan, up 21.99 percent over the same period of last year and the total amount that insurance firms paid to insurance buyers reached 24.378 billion yuan.
By PD Online staff member Li Yan
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