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China Regulators Reportedly Probe Bancassurance "Quick Return" Products to Prevent Liquidity Risks From Concentrated Policy Surrenders
2026-10-15 10:07:00 The Shanghai Securities News, citing sources, reported that mainland regulators have issued the "Notice on Conducting Inspection and Rectification of 'Quick Return' Products", targeting certain "quick return" products developed by some companies through bancassurance channels. The notice requires life insurance institutions to conduct inspections and rectifications and strictly implement relevant requirements under the "integration of reporting and execution" framework. The notice requires that, in principle, companies must not newly file products whose policy cash value at the end of the third policy year exceeds premiums already paid. For previously filed existing products with similar issues, companies are in principle required to proactively suspend sales. Companies facing liquidity difficulties are required to comprehensively assess liquidity gaps, formulate proper cleanup and standardization plans, communicate with regulators, strictly control business scale based on the principle of balancing inflows and outflows, and set deadlines for product suspension and rectification. The notice makes clear that regulators will, in accordance with the law, adopt measures including regulatory interviews, rectification orders, suspension of product filings and administrative penalties against companies that blindly pursue scale expansion and cause vicious market competition, in order to safeguard a fair competitive market environment. "Quick return" products refer to insurance products whose cash value can exceed paid premiums within a short period of time. As consumers can recover their principal in the short term, they may surrender policies before product maturity. Large-scale concentrated policy surrenders could trigger liquidity crises for insurance companies. (jl/ad)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |