Announcement of the National Financial Regulatory Administration on Seeking Public Comments on the Measures for Anti-Insurance Fraud (Draft for Comment)
Announcement of the National Financial Regulatory Administration on Seeking Public Comments on the Measures for Anti-Insurance Fraud (Draft for Comment)
Announcement of the National Financial Regulatory Administration on Seeking Public Comments on the Measures for Anti-Insurance Fraud (Draft for Comment)
April 11, 2024
To prevent and eliminate the risk of insurance fraud, protect the legitimate rights and interests of insurance consumers, and promote the high-quality development of the insurance industry, the National Financial Regulatory Administration (NFRA) has drafted the Measures for Anti-Insurance Fraud (Draft for Comment) and is now seeking public feedback. The public can provide feedback through any of the following ways and methods:
1. Submit your comments by email to: qushujuan@cbirc.gov.cn and indicate "Solicitation of Comments on the Measures Anti-Insurance Fraud" in the email subject.
2. Submit your comments via postal mail to: Inspection Bureau of the NFRA, Jia No.15 Financial Street, Xicheng District, Beijing, 100033, and indicate "Solicitation of Comments on the Measures for Anti-Insurance Fraud" on the envelope.
The cut-off date for submitting comments is May 11, 2024.
Measures for Anti-Insurance Fraud (Draft for Comment)
Chapter I General Provisions
Article 1 (Legislative Purpose) To prevent and eliminate the risk of insurance fraud, enhance the comprehensive risk management capability of the insurance industry, protect the legitimate rights and interests of parties engaged in insurance activities, maintain market order, and promote high-quality development of the industry, these Measure are formulated in accordance with the Insurance Law of the People's Republic of China, the Criminal Law of the People's Republic of China, and other relevant laws and regulations, and considering the current status of the industry development.
Article 2 (Definition of Insurance Fraud) The term "insurance fraud" (referred to as "fraud") in these Measures refers to acts that seek illegal benefits through the use of insurance contracts, primarily including intentionally fabricating the subject-matter insured to obtain insurance benefits; making up an insurance incident that has never occurred, inventing false accident causes, or exaggerating the amount of losses to obtain insurance benefits; and deliberately causing an insurance incident to fraudulently obtain insurance benefits.
The term "risk of insurance fraud" (referred to as "fraud risk") in these Measures refers to the risk posed by fraud perpetrators engaging in fraudulent activities, causing economic losses or other losses to the parties engaged in insurance activities and the public.
Article 3 (Objectives and Tasks) The anti-fraud work aims at establishing a Four-In-One System that combines "regulatory leadership, institution-based, industry-wide prevention, and collaborative efforts," instituting a sound anti-fraud mechanism, effectively curbing the momentum of illegal and criminal fraudulent activities, significantly enhancing the industry's capacity to prevent and eliminate fraud risks, and increasing consumers' anti-fraud awareness.
Article 4 (Work Process) Insurance institutions shall establish an all-process fraud risk management system, and gradually improve the work process of ex ante multi-party early warning, intelligent in-process control, and ex post retrospective management.
Industry organizations shall fully leverage big data and industry-wide prevention in combating illegal and criminal fraudulent activities according to their respective responsibilities, and enhance the industry's fraud risk monitoring, early warning, and disposal processes, to provide support for regulatory authorities, public security and judicial authorities, and insurance institutions in their anti-fraud efforts.
Article 5 (Cyber and Data Security) Insurance institutions and industry organizations shall coordinate cybersecurity, data security, and innovative development according to their respective responsibilities, perform their security protection obligations in accordance with the law, improve management systems, strengthen cybersecurity and data security protection, ensure necessary personnel and resource inputs, and implement management and technical measures for cybersecurity and data security, to ensure the secure and controllable operation of anti-fraud information systems.
Article 6 (Consumer Rights Protection) Insurance institutions shall regard the protection of consumer rights as the immutable goal of anti-fraud work, consistently improve the quality and efficiency of insurance services, guide insurance intermediaries, third-party outsourcing service providers, and consumers to participate in insurance activities in accordance with the law, with integrity and honestly, create a good order in the insurance market, and effectively protect consumers' legitimate rights and interests.
Chapter II Anti-Fraud Supervision and Management
Article 7 (Regulatory Authorities) The National Financial Regulatory Administration (NFRA) and its local offices shall oversee the fraud risk management.
Article 8 (Top-Level Design) The NFRA and its local offices shall establish an anti-fraud regulatory framework, improve anti-fraud regulatory systems, strengthen guidance on anti-fraud work for insurance institutions and industry organizations, facilitate communication, cooperation, and information exchange with public security and judicial authorities, relevant industry regulators, and local government departments, and enhance cross-border cooperation in anti-fraud efforts.
Article 9 (Regulatory Responsibilities for Institutions) The NFRA and its local offices shall guide insurance institutions to perform the following duties:
(1) Establish and improve fraud risk management systems;
(2) Prevent and respond to fraud risks;
(3) Participate in anti-fraud industry collaboration; and
(4) Conduct anti-fraud awareness-raising and education activities.
......
April 11, 2024
To prevent and eliminate the risk of insurance fraud, protect the legitimate rights and interests of insurance consumers, and promote the high-quality development of the insurance industry, the National Financial Regulatory Administration (NFRA) has drafted the Measures for Anti-Insurance Fraud (Draft for Comment) and is now seeking public feedback. The public can provide feedback through any of the following ways and methods:
1. Submit your comments by email to: qushujuan@cbirc.gov.cn and indicate "Solicitation of Comments on the Measures Anti-Insurance Fraud" in the email subject.
2. Submit your comments via postal mail to: Inspection Bureau of the NFRA, Jia No.15 Financial Street, Xicheng District, Beijing, 100033, and indicate "Solicitation of Comments on the Measures for Anti-Insurance Fraud" on the envelope.
The cut-off date for submitting comments is May 11, 2024.
Measures for Anti-Insurance Fraud (Draft for Comment)
Chapter I General Provisions
Article 1 (Legislative Purpose) To prevent and eliminate the risk of insurance fraud, enhance the comprehensive risk management capability of the insurance industry, protect the legitimate rights and interests of parties engaged in insurance activities, maintain market order, and promote high-quality development of the industry, these Measure are formulated in accordance with the Insurance Law of the People's Republic of China, the Criminal Law of the People's Republic of China, and other relevant laws and regulations, and considering the current status of the industry development.
Article 2 (Definition of Insurance Fraud) The term "insurance fraud" (referred to as "fraud") in these Measures refers to acts that seek illegal benefits through the use of insurance contracts, primarily including intentionally fabricating the subject-matter insured to obtain insurance benefits; making up an insurance incident that has never occurred, inventing false accident causes, or exaggerating the amount of losses to obtain insurance benefits; and deliberately causing an insurance incident to fraudulently obtain insurance benefits.
The term "risk of insurance fraud" (referred to as "fraud risk") in these Measures refers to the risk posed by fraud perpetrators engaging in fraudulent activities, causing economic losses or other losses to the parties engaged in insurance activities and the public.
Article 3 (Objectives and Tasks) The anti-fraud work aims at establishing a Four-In-One System that combines "regulatory leadership, institution-based, industry-wide prevention, and collaborative efforts," instituting a sound anti-fraud mechanism, effectively curbing the momentum of illegal and criminal fraudulent activities, significantly enhancing the industry's capacity to prevent and eliminate fraud risks, and increasing consumers' anti-fraud awareness.
Article 4 (Work Process) Insurance institutions shall establish an all-process fraud risk management system, and gradually improve the work process of ex ante multi-party early warning, intelligent in-process control, and ex post retrospective management.
Industry organizations shall fully leverage big data and industry-wide prevention in combating illegal and criminal fraudulent activities according to their respective responsibilities, and enhance the industry's fraud risk monitoring, early warning, and disposal processes, to provide support for regulatory authorities, public security and judicial authorities, and insurance institutions in their anti-fraud efforts.
Article 5 (Cyber and Data Security) Insurance institutions and industry organizations shall coordinate cybersecurity, data security, and innovative development according to their respective responsibilities, perform their security protection obligations in accordance with the law, improve management systems, strengthen cybersecurity and data security protection, ensure necessary personnel and resource inputs, and implement management and technical measures for cybersecurity and data security, to ensure the secure and controllable operation of anti-fraud information systems.
Article 6 (Consumer Rights Protection) Insurance institutions shall regard the protection of consumer rights as the immutable goal of anti-fraud work, consistently improve the quality and efficiency of insurance services, guide insurance intermediaries, third-party outsourcing service providers, and consumers to participate in insurance activities in accordance with the law, with integrity and honestly, create a good order in the insurance market, and effectively protect consumers' legitimate rights and interests.
Chapter II Anti-Fraud Supervision and Management
Article 7 (Regulatory Authorities) The National Financial Regulatory Administration (NFRA) and its local offices shall oversee the fraud risk management.
Article 8 (Top-Level Design) The NFRA and its local offices shall establish an anti-fraud regulatory framework, improve anti-fraud regulatory systems, strengthen guidance on anti-fraud work for insurance institutions and industry organizations, facilitate communication, cooperation, and information exchange with public security and judicial authorities, relevant industry regulators, and local government departments, and enhance cross-border cooperation in anti-fraud efforts.
Article 9 (Regulatory Responsibilities for Institutions) The NFRA and its local offices shall guide insurance institutions to perform the following duties:
(1) Establish and improve fraud risk management systems;
(2) Prevent and respond to fraud risks;
(3) Participate in anti-fraud industry collaboration; and
(4) Conduct anti-fraud awareness-raising and education activities.
......