Chinese banks should tighten risk controls in their insurance agency business to improve consumer protection, Shanghai Securities News reported Thursday, citing a joint notice from the banking and insurance watchdogs. Insurers and banks are required to conduct risk appetite assessment of consumers before recommending an insurance product. Also, only policies with guaranteed returns may be sold to people 65 years or older. Policies sold to low-income customers must be handled manually, not by electronic means, the report said. Insurers and banks are being encouraged to promote low-risk products with long-term saving features.
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