Interface News Reporter | Zeng Lingjun
Insurance agents continue to exit the market. According to data from BaoTouJie, from the start of this year through mid-10, a total of 33 professional insurance intermediary licenses have been revoked nationwide. Examining these 33 revocations individually reveals diverse reasons: some were non-renewals or revocations ordered by regulators in accordance with the law; others resulted from voluntary applications by companies, dissolution, or bankruptcy. Against the backdrop of the "cleaning up and quality improvement" campaign that began in 2024, this wave of exits shows notable shifts in both the structure of exiting entities and the underlying drivers.
Zhu Junsheng, a postdoctoral fellow in applied economics and professor at Peking University, told Interface News that the industry adjustment is evolving from removing institutions that "cannot operate" or are "non-compliant" to exiting businesses that are "no longer worth operating."
First, the pool of exiting entities has diversified. Early governance focused on shell companies, abnormal operators, and violators; now, some institutions with backing from large enterprises or national qualifications are voluntarily exiting, indicating that the adjustment scope has expanded from inefficient and non-compliant entities to those with insufficient commercial value.
Second, the motivation for exit has expanded from compliance pressures to strategic and operational considerations. Previously, regulatory mandates drove most withdrawals; now, some institutions may choose to exit even while still operating due to insufficient synergy with their core business, limited profitability prospects, or a lack of independent competitiveness.
Third, exit options are more diverse. Shareholders may first attempt to transfer equity; if a suitable buyer cannot be found over an extended period, they may then consider voluntary deregistration. These different approaches reflect variations in the operating performance of institutions, shareholder objectives, and asset disposal conditions.
An insurance industry consultant who previously participated in the disposal of financial assets by central state-owned enterprises told Jiemian News, "In the past, a national insurance intermediary license could generate tens of millions in fee income annually through channel-based business. However, with the implementation of 'reporting and operations alignment,' the spread on fees has been compressed to near zero. Keeping such a license now entails ongoing costs: maintaining compliance staff, submitting regulatory reports, and responding to inspections, while revenue continues to shrink. For central SOEs, this business segment contributes negligibly to group revenue, yet it carries tangible compliance costs and public sentiment risks. Selling or canceling the license makes clear financial sense."
Jiang Han, senior researcher at the Pangu Think Tank, told Interface News that the "cleaning up and quality improvement" campaign in previous years was primarily driven by regulators, targeting long-inactive or non-compliant entities such as shell companies and small, scattered operations, with many exiting passively. In this round of mass deregistrations, however, a significantly higher proportion of officially licensed institutions with central or state-owned enterprise backgrounds have chosen to exit voluntarily.
A perplexing paradox: while regulatory channels for issuing new national licenses and upgrading regional ones continue to tighten—reducing license supply—many institutions are proactively surrendering their qualifications.
A senior executive at an insurance intermediary in Shenzhen told Jiemian News: "In recent years, buyers of shell companies were betting on resale appreciation. Now, regulators are strictly scrutinizing shareholder qualifications, ultimate beneficial owner transparency, and the ability to sustain operations. Buyers must present their own plans for what business to deploy after acquisition and how to make it viable. Speculative capital focused on trading licenses has largely exited."
Jiang Han told Interface News that a contraction in license supply does not automatically drive up license value. The core driver behind the past "hard-to-get licenses" was traffic dividends and arbitrage opportunities; both foundations are now gone. Even if new licenses become scarce, holding a license without a sustainable profit model will turn it into a cost-draining burden. Second, market valuation of licenses has shifted entirely. Buyers no longer pay a high premium for "national qualifications" alone; they look for stable client bases, vertical service capabilities, and sustainable product lines. A bare license without these assets simply won't command a high price.
For example, Sino-American International Insurance Sales and Service Co., Ltd., a subsidiary of PICC. This intermediary, with registered capital of 1.5 billion yuan and jointly established by PICC Life and American International Group (AIG), ultimately faced insolvency and was put up for auction. It can be acquired for as little as 1 yuan, but the buyer must also assume over 20 million yuan in debts and unpaid employee wages.
On Alibaba Auction, Car Insurance Broker 2025 sold its 100% equity at a dramatically low price: starting at 5000 million with no bids, the price was reduced nine consecutive times to reach a floor of 19.53 million. After a tenth round of bidding starting at 1, it finally sold for 7.1 million. A license worth tens of millions ended up selling at a "cabbage price," directly reflecting the cooling demand in the insurance intermediary market.
Zhu Junsheng told Interface News that the contraction in license supply and the exit of existing institutions are not contradictory: the former regulates market entry, while the latter reflects institutions' reassessment of operating costs, profitability prospects, and strategic value. "With rising costs of licensed operations and competitive pressure, institutions must continue investing in compliance, personnel, systems, and customer service. If revenue is insufficient to cover these costs, continuing operations may not be worthwhile—even if licenses are scarce."
