Financial Regulator Unveils Action Plan to Govern Non-Auto Insurance Sector

The National Financial Regulatory Administration recently issued the Action Plan for Comprehensive Governance of Non-Auto Insurance, focusing on prominent issues and risks in the non-auto insurance sector. It standardizes industry operations across product management, business conduct, system and data construction, and intermediary behavior. The plan aims to address disorderly competition in the non-auto insurance market, deploy long-term governance measures, and build a standardized, professional, and refined market system to promote high-quality development of the property insurance industry.

The plan builds on the 2025 notice's red line of "alignment of filing and execution" (bao xing he yi), extending non-auto insurance regulation from cost management to a full-chain, long-term governance framework covering products, operations, data, intermediaries, and protection.

On product source management, the plan requires a product management system with regulatory guidance, company responsibility, and industry support. It specifies revising product development guidelines, strengthening accountability for development management, improving filing standards, dynamically publishing product problem lists, and advancing re-filing of existing products by line and by phase, while continuously clearing and upgrading product quality. On business operations, property insurers must strictly implement filed terms and rates, tightly control high-risk business, optimize long-term severely loss-making lines, and guide insurers to pursue differentiated development, proactively aligning with national strategic priorities such as green and low-carbon development and intelligent manufacturing for insurance protection services.

For intermediary and internet channels, the plan sets regulatory red lines, prohibiting false accounting and off-book operations, and prohibiting practices such as restricting bidding qualifications to force insurers to develop terms and rates that do not meet requirements or lack substantive protection. It also strengthens insurers' full-process management responsibility over intermediaries, banning disguised commission payments through items such as promotional fees and technical service fees.

Data show that in the first half of 2026, non-auto insurance premiums accounted for 54% of total premiums at property insurance companies. Excluding agricultural insurance, health insurance, accident insurance, and export credit insurance, the remaining non-auto lines accounted for about 21% of premiums. From January to July 2026, the non-auto insurance business as a whole turned profitable. Re-filed clauses for enterprise property insurance decreased by 28,000 compared with before governance, and employer liability insurance clauses decreased by more than 600. Commission rates for re-filed enterprise property and employer liability insurance fell by about 6 and 5 percentage points year-on-year, respectively. The non-auto insurance receivable premium rate fell by about 8 percentage points year-on-year. These figures indicate that earlier governance measures have begun to show initial results.

The plan sets governance objectives for the 15th Five-Year Plan period (2026-2030): through comprehensive governance, disorderly competition in the non-auto insurance market will be effectively rectified, the management system will be continuously improved, market entities' operational capabilities will be effectively enhanced, a sound industry ecosystem will be accelerated, and the foundation for high-quality development will be further consolidated. The plan also requires strengthening system and data support, promoting unified data standards, system platform construction, and data accumulation and application. It further mandates governance safeguards, clarifying the responsibilities of regulators, institutions, and industry organizations to form an implementation mechanism with vertical linkage and horizontal coordination.