China Revises Property Insurance Product Development Rules

The National Financial Regulatory Administration recently issued revised provisions on insurance product development management for property insurance companies, according to a report by People's Daily. The revised rules explicitly forbid the development of eight categories of insurance products and define prohibited scenarios for riders to ensure clear structures and curb compliance risks. The barred offerings include property policies where the insured lacks legal interest, policies covering events that cause no actual loss or are certain to happen or fail to happen, speculative risks, offerings without substantive protection created merely for price manipulation or hype, improper premium return promises, and uncompensated risk underwriting unless specifically authorized. Property insurers are also instructed not to develop riders that alter primary policy errors, carry weak connections to core products, or maintain independent liabilities that should instead be developed as standalone primary products. Under the new requirements, insurance companies must establish a product management committee led by their principal person in charge to deliberate major development matters and assess ongoing product compliance.