New classification system for insurance intermediaries in China

For 2020, the China Banking and Insurance Regulatory Commission (CBIRC) plans to introduce a new classification system for insurance intermediaries: brokers and agents.

The latter is to include four categories ranging from the best (A) to the worst (D). Intermediaries will be subject to a rating that takes into account a number of criteria such as: the mode of corporate governance, management, quality of business underwritten, years of experience, level of share capital, quality of shareholders and best practices.

Depending on their rating, intermediaries could be allowed or prohibited from using any type of distribution channel, including digital platforms and online sales. In China, 80% of the business is underwritten through intermediaries.

At the end of 2018, the number of insurance intermediaries has reached 2647. The points of sale dedicated to insurance (travel agencies, department stores, etc.) amounted to 32 000.