China's financial regulator has escalated its efforts to comprehensively address issues in the non-auto insurance sector. On August 21, the National Financial Regulatory Administration (NFRA) issued the Action Plan for Comprehensive Governance of Non-Auto Insurance, targeting prominent problems such as disorderly market competition and weak foundational infrastructure. The plan outlines a series of governance measures spanning product source management, business operations, data support, and intermediary business practices.
This new initiative builds upon an earlier notice released in October 2025, which focused on non-standardized operations and irrational competition within the non-auto insurance field, aiming to promote rational competition, cost reduction, efficiency enhancement, and quality expansion. The latest Action Plan sets ambitious goals for the "15th Five-Year Plan" period, including effectively rectifying disorderly competition, continuously improving the management system, enhancing the operational capabilities of market entities, accelerating the construction of a healthy industry ecosystem, and further consolidating the foundation for high-quality development. The overarching objective is to establish a standardized, professional, and refined non-auto insurance market system.
The plan emphasizes several key areas: strengthening product source management, promoting steady business operations, consolidating system and data support, regulating intermediary business conduct, and reinforcing governance safeguards. Regarding product management, the plan calls for revising product development guidelines, refining product filing standards, optimizing filing key points, and dynamically publishing product issue lists. A significant measure involves the phased re-filing of existing non-auto insurance products by insurance category, accelerating the process of clearing outdated products and improving overall quality.
For insurance companies, the plan mandates that property insurers establish robust internal review mechanisms, prudently assess the necessity of product development, and continuously enhance policy compliance and actuarial soundness of premium rates. Companies are also required to implement product management committee mechanisms, with principal leaders overseeing major decisions in product development and management. Furthermore, accountability and punishment systems must be improved to ensure that product development and management personnel fulfill their duties diligently.
The plan also requires property insurers to strengthen premium income management, strictly adhere to approved insurance clauses and premium rates, and enhance risk identification and control for key businesses. Companies must strictly manage high-risk businesses, optimize long-term severely loss-making operations, and pay close attention to high-growth business segments. Additionally, property insurers are encouraged to accelerate reform and transformation, leverage their comparative advantages, and achieve differentiated development. They should proactively align with national strategies, focusing on key areas such as green and low-carbon initiatives, intelligent manufacturing, the low-altitude economy, the marine economy, new urban residents and new business formats, and local characteristic industries, while optimizing traditional business structures to improve operational quality and efficiency.
Regarding market supervision, the plan clarifies that cross-regional business supervision requirements will be improved to unify regulatory standards. A working mechanism tailored to the characteristics of non-auto insurance, involving "inspection, notification, and linkage," will be developed to connect violations with regulatory measures. Industry associations at both national and local levels are tasked with strengthening self-regulation in non-auto insurance business, increasing self-inspection efforts, and publicizing typical violation cases.
Data infrastructure constitutes another focal point of this comprehensive governance initiative. The plan proposes optimizing insurance category classifications, formulating expense allocation guidelines, and standardizing procedures and standards for expense allocation among property insurers. The unified statistical information system will be upgraded with more detailed operational data monitoring indicators and granularity, alongside unified data monitoring standards for non-auto insurance. Furthermore, an industry-level database covering underwriting, claims, expenses, and other full-process data will be established, spanning major insurance categories and risk dimensions. The plan also explores leveraging big data, digitalization, and intelligent technologies for anomaly monitoring, risk profiling, and premium rate retrospective analysis.
In the insurance intermediary sector, the plan stipulates that intermediary institutions must accurately calculate all income and expenses, with strict prohibitions on false accounting and off-book operations. It also forbids intermediaries from demanding that insurance companies develop insurance clauses and rates that do not meet requirements, lack substantive differences from already-filed products, or provide insufficient coverage through methods such as restricting bidding qualifications or setting related scoring items. The plan further proposes exploring a system for explicitly disclosing policy commissions on receipts to protect consumer rights and interests.
Insurance companies' management responsibilities toward intermediaries have also been further clarified. The plan requires property insurers to establish full-process control mechanisms covering intermediary access, agreement management, fee settlement, business quality assessment, and exit procedures. Insurers must strictly verify intermediary qualifications and are prohibited from entrusting business to entities lacking legal qualifications. Strict compliance with commission regulatory requirements is mandated, with explicit bans on disguised commission payments through channels such as promotional fees, technical service fees, or precautionary expenses.
Regarding internet platform insurance business, the plan aims to prevent potential risks in marketing, channel cooperation, underwriting, and claims processes. It specifically targets the regulation of internet platforms that leverage "traffic advantages" to charge unreasonable fees, and calls for serious investigation and punishment of violations including providing benefits beyond contractual terms to policyholders, forced bundling or tie-in sales, and misleading sales practices.
The National Financial Regulatory Administration stated that the Action Plan extends the strict supervision requirements of the earlier notice, addressing the diversity and complexity of non-auto insurance business while clarifying implementation pathways and governance directions for regulatory requirements. Going forward, the administration will guide its dispatched offices, industry organizations, property insurance companies, and insurance intermediary institutions in implementing the plan, conducting orderly re-filing of non-auto insurance products, establishing and improving industry rules and foundational management systems, continuously deepening business risk control and process optimization, guiding market entities toward differentiated development, and promoting high-quality growth in the non-auto insurance sector.