CBIRC Issues the Information Disclosure Standards of Life Insurance Products with a Term over One Year
To safeguard the fundamental interests of the people, and effectively protect the legitimate rights and interests of insurance policy holders, the insured and beneficiaries, China Banking and Insurance Regulatory Commission (CBIRC) has formulated and promulgated the Information Disclosure Standards of Life Insurance Products with a Term over One Year (hereinafter referred to as the “Standards”).
As a supporting document of the Rules on Information Disclosure of Life Insurance Products (CBIRC Decree [2022] No.8), the Standards comprehensively regulates the information disclosure of insurance products by clarifying the specific requirements for information disclosure of various types of life insurance products, such as reinforcing information disclosure of insurance companies, continuously enhancing the transparency of insurance products and protecting the legitimate rights and interests of consumers.
The Standards clearly requires that all life insurance products with a term of more than one year shall have information brochures, and shall disclose in detail the contents of marketing materials of products, level of protection, demonstration of return and benefits, etc., in accordance with the type of insurance products. The information disclosure shall fully reveal the long-term attributes and various risk characteristics of the products, and explicitly state the key contents of the products such as payment methods and surrender losses.
The Standards requires that insurance companies disclose the ratio of achieving the dividend targets (as demonstrated in the information brochure) in terms of participating life insurance, while removing the expression of the three-rank (high, medium and low) demonstration rates, and lowering the level of demonstration rates. At the same time, insurance companies are given appropriate time period for business adjustment to effectively prevent business risks.
Appendix: Information Disclosure Standards of Life Insurance Products with a Term over One Year (Chinese)
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