The China Insurance Regulatory Commission Shanghai Bureau recently announced strict regulations on sales of variable annuity (VA) insurance in Shanghai. According to the regulations, insurers are required to submit the following written materials at least 10 days before launching their VA products: sample insurance contracts, policies and promotional materials; insurance application forms; details of their distribution channels and documents containing risk assessments signed by the relevant client. Insurers are also required to follow-up by telephone and/or other means with the policy holders during the specified cooling-off period to ensure that the policy holder correctly understands the product and all its terms and conditions.

Of the five cities that are permitted to carry out trial programmes for VA products – Shanghai, Beijing, Guangzhou, Shenzhen and Xiamen – Shanghai is the first to issue such measures to regulate the marketing and sale of VA products.

(Source: CNstock)