The new guideline clearly defines the qualification and regulations of the internet insurance businesses.
Dean of School of Insurance with Central University of Fiance and Economics Hao Yansu says rules need to be set up to regulate the new business.
"Currently, there are over 80 insurance companies in China. Most of them have their own online platforms to sell products. There are also a few independent online insurance companies. As more and more insurance companies launch their websites, more social capital will enter the internet insurance business. Thus rules need to be set up to ensure the effective operation of this business."
According to the guideline, only legally registered insurance companies and professional insurance agencies can sell products online.
