According to reports from Caixin, industry sources revealed that the Guangdong Financial Regulatory Bureau recently issued a document to carry out special governance on the illegal sale of overseas insurance products and illegal cross-border insurance under its jurisdiction (excluding Shenzhen).

It is understood that this special governance covers all banking and insurance institutions under the Guangdong Regulatory Bureau, investigating whether there are institutions and their employees involved in, organizing or assisting in the illegal sale (including illegal promotion, recommendation) of overseas insurance products, and violations of cross-border insurance issues, including but not limited to: institutions or individuals receiving benefits from overseas institutions, promoting or recommending overseas insurance institution insurance products through various seminars, conferences, activities, etc., or through the internet and arranging customers intending to insure overseas insurance products to go abroad. Channel agents of banks and insurance, individual agents of insurance companies, agents of insurance professional agencies, and brokers of insurance brokerage agencies are all included in this inspection.

A Guangdong insurance professional confirmed that the company received a request from superiors last week to conduct a self-examination of illegal sales of overseas insurance products and violations of cross-border insurance. The individual mentioned that previously Hong Kong insurance products could not be sold directly in the mainland. Since the opening up due to the pandemic, the popularity of Hong Kong insurance products has been very high, and under the assistance of various intermediaries, it has become even more active. Indeed, some individuals have used this channel to transfer funds overseas.