The Life Insurance coverage Division of the CBIRC has launched its 2022 damaging record for all times insurance coverage merchandise, including 9 new clauses to the 73 that have been on the record in 2021. This takes the entire variety of clauses on the blacklist to 82.

The damaging record covers 4 facets, specifically, presentation of product phrases, design of product legal responsibility, product fee willpower and precise assumptions, and product submissions.

The 9 new clauses cowl issues like:

  • COVID-19 quarantine insurance coverage (compensation is payable by the insurer all through the period of the quarantine);

  • an insurer stipulating that it doesn’t assure the renewal of short-term medical insurance merchandise;

  • the ready interval earlier than an insurance coverage coverage takes impact will not be clearly disclosed;

  • complicated phrases utilized in medical insurance coverage insurance policies, resembling “malignant tumor” and “extreme malignant tumor”;

  • the calculation of the money worth of an insurance coverage coverage product doesn’t conform to the overall actuarial rules, and there’s a threat of treating long-term insurance coverage on a short-term foundation;

The blacklist of life insurance coverage merchandise and phrases is launched yearly to boost efficient product supervision. Insurance coverage corporations are urged to look at the brand new “damaging record”, and cull the insurance coverage merchandise they’re promoting that don’t conform with necessities. The intention is for the damaging record to function a information to insurers once they design and develop merchandise.

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