The Chinese State Administration for Industry and Commerce fines insurance companies for market sharing (Insurance Companies)

Recently, the SAIC published the decisions of its local offices in Hubei and Jiangxi relating to market sharing agreements by insurance companies. Both decisions involved coinsurance arrangements relating to accidental injury insurance for the construction industry. Hubei The Hubei Administration for Industry and Commerce (Hubei AIC) investigated 12 insurance companies who provided accidental injury insurance in Wuhan. It found that, on 1 January 2008, the insurance companies had signed a coinsurance agreement and established a coinsurance body. As the principal insurer, China Pacific would have 12% of the total insured amount, and the remaining insurers would each have 8%. China Pacific was responsible for collecting all the insurance premiums, entering standardised insurance