According to latest auto insurance news, China Insurance Regulatory Commission detected there were 55 insurance companies (China insurers) that did not meet the disclosure standards of 133 insurance companies conducted audits of information including a company holding insurance shares, 70 life insurance companies and 62 non-life insurance companies.
55 insurance companies violating this standard accounted for 40% China insurers of the number of insurance companies audited by CIRC.
This inspection was applied to the first half of 2015 including two main areas: firstly, the information provided on the website of each insurance companies and the information that the companies posted through the website of Insurance Association of China; secondly, information management and operation systems of each insurance company, according to CIRC.
The audits clarified the four main shortcomings of the 55 insurance companies: not publish the required information; the information provided did not meet the disclosure standards; shortcomings in the website display and non-compliance with requirement about filing to provide information to authorities.
CIRC detected that there were 35 insurers not disclosing the required information that must be disclosed. Of which, 15 companies did not disclose their liquidity fully; 8 companies did not provide fully their basic information. In addition, 26 insurance companies did not meet the standard for their closuring information, 8 companies had problems with displaying on their website and 8 companies did not meet requirement of filing to provide information to the management agencies.
The insurance companies violating had to fix their shortcomings of disclosure no later than April 30th and reported to CIRC no later than May 15th about how corrective actions were implemented. 133 insurance companies subject to be audited by CIRC at this time included a company holding insurance shares, 70 life insurance company and 62 non-life insurance companies.