Recently, the China Insurance Regulatory Commission ("CIRC") has issued the Opinions on Strengthening the Risk Warning for Insurance Consumption (the "Opinions").
The Opinions clearly provide for principles, objectives of the warning mechanism, and key tasks in respect of the risk warning for insurance consumption. Further, the Opinions call for establishing a scientific, normative, and effectively running working mechanism on risk warning for insurance consumption throughout the insurance sector, forming a pattern of risk warning for insurance consumption that involves the participation of multiple parties, joint actions by higher and lower institutions, collaborative operation, and prompt and effective precautions, developing a uniform platform for risk warning for insurance consumption, and improving insurance consumers' capacity for identifying risks and protecting themselves. The Opinions ascertain three tasks around the above-mentioned goals as follows. The first is establishing and improving working mechanisms, and related entities in the insurance sector will be required to reinforce the setup of systems, make clear the division of responsibilities and create a work pattern in which related entities perform their own functions but work collaboratively in administration. The second is pushing ahead the development of the risk warning platform and setting up the linking mechanism for the collection, release and sharing of information. And the third is standardizing operation processes to better monitor and identify risks in insurance consumption and make the warning against risks in insurance consumption more effective.