17 February 2020

CIRC halts sale of smog insurance products, paper says

The China Insurance Regulatory Commission (CIRC) has ordered the People’s Insurance Co. (Group) of China (PICC) and Ping An Insurance (Group) Co. Ltd. (02318.HK, 601318.CN) to stop selling a new smog insurance scheme, after the products went on sale less than 10 days ago, the National Business Daily reported Wednesday. Industry sources suggested that the products went beyond the types of insurance authorized by the regulator. Under the PICC scheme, buyers will receive a payout of 200 yuan (US$32.23) or 300 yuan if the Air Quality Index (AQI) of the eight districts in Beijing exceeds the 300 level for five consecutive days. There is also a hospitalization subsidy of 100 yuan a day, or a maximum of 1,500 yuan per claim, within a one-year period. Ping An’s product is also linked to the AQI, the report said.

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