The Insurance Association of China has warned of risks in the booming internet insurance business, the Shanghai Securities News reported Wednesday, citing the industry group’s latest report. Specifically, close attention must be given to high-yield insurance wealth management products, which have exerted liquidity pressure on insurers, the association said. It also warned of risks related to information safety, marketing models as well as a mismatch between operators’ assets and their ability to pay. The number of internet insurance firms increased from 28 firms in 2011 to 60 last year, while their combined premium income jumped from 3.2 billion yuan (US$522.49 million) to 29.1 billion yuan, with an average growth rate of 202 percent, the report said.
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