Source: China.org.cn
New regulations have been introduced for managing insurance sales agents. According to recent reports from the Shanghai Securities News, the China Insurance Association has released the "Measures for Building a Credit File System for Insurance Sales Agents" (hereinafter referred to as the "Measures"). The new rules cover information collection, organization, and file management, aiming to strengthen self-discipline among insurance sales agents and standardize their professional conduct. The "Measures" will take effect on 2027, 1, 1.
Guo Jinlong, a researcher at the Institute of Finance of the Chinese Academy of Social Sciences and Director of the Research Center for Insurance and Economic Development, told Shanghai Securities News that, in practice, the insurance sales workforce is large and highly mobile, with some practitioners engaging in misconduct such as misleading sales and concealing product information. Historically, records of dishonest behavior have not been effectively shared across institutions, allowing a small number of salespeople to move between companies despite prior violations. Relying solely on regulatory penalties is insufficient to establish comprehensive self-discipline across the entire value chain.
"To better protect the legitimate rights and interests of insurance consumers, it is necessary to establish a searchable and traceable credit record system for practitioners, fostering an industry culture where 'everyone upholds integrity and insurance serves the people,' said Guo Jinlong. Against this backdrop, the issuance of the Measures will address gaps in self-discipline management systems for sales personnel and strengthen the accountability of insurance institutions as primary entities."
Credit records cover four categories of information.
The Measures stipulate that the information collected for insurance sales personnel credit files includes basic information, employment status information, credit evaluation data, and public credit information.
Yang Fan, General Manager of Beijing PaiPaiWang Insurance Agency Co., Ltd., believes this means sales staff must not only comply with regulations during the sales process but also prioritize maintaining their long-term professional records and personal credit. For sales professionals who consistently uphold integrity in their work and provide standardized customer service, this actually fosters a fairer competitive environment.
The "Measures" significantly refine requirements for occupational status and credit evaluation information. For instance, occupational status information includes insurance industry work experience, years of practice, geographic scope of practice, and records of moving between institutions. Credit evaluation information covers performance appraisals, achievements, rewards and penalties (including long-term service policy quality or long-term policy persistence rates over an extended period, 13-month policy continuation rate, long-term policy surrender rate, complaint rate, etc.).
"For sales professionals, the biggest change is that professional credibility will become even more critical. In the past, a single sales action corresponded to one transaction. Going forward, a salesperson's professional conduct and credit evaluations will create continuous records, and compliance performance will increasingly form the foundation for their career development," said Yang Fan.
Strengthen the primary responsibility of insurance institutions
Insurance companies, as the primary entities responsible for managing credit records of insurance sales personnel, have had their obligations further strengthened in establishing, managing, and maintaining these records.
Regarding information management, the Measures stipulate that insurance institutions must: establish credit review and management systems for insurance sales personnel; record sources of credit information to ensure traceability; and promptly organize and update such credit information.
Regarding archive management, the Measures stipulate that insurance institutions must establish management systems and workflows for creating, preserving, protecting confidentiality, ensuring security, accessing, and transferring credit archives of insurance sales personnel. Credit archive information shall be used only for purposes agreed upon with insurance sales personnel, and information disclosure shall be conducted in accordance with standardized procedures and channels.
Guo Jinlong stated that insurance institutions are the primary entities responsible for archive management. The collection and sharing of information require written authorization from sales personnel. Additionally, mechanisms for addressing disputes, correcting errors, issuing party statements, and restoring credit should be established to safeguard the legitimate rights and interests of practitioners. Industry associations shall assume supervisory and coordinating responsibilities and implement self-disciplinary sanctions against non-compliant members.
"As sales conduct regulations tighten further, deceptive and misleading practices, as well as false advertising, will be documented and archived. Consumers will also be able to legally verify the credit status of sales agents; an individual's credit directly impacts customer trust," said Guo Jinlong. In the future, the evaluation framework for insurance providers will shift away from a sole focus on premium volume, with compliance levels and service quality becoming key components of comprehensive assessments.
Guide the insurance industry back to value-oriented practices
Industry experts say the Measures do more than make insurance sales personnel's credit information searchable and traceable. They also raise transparency and standardization in insurance sales, fostering a professional ecosystem that prioritizes creditworthiness and long-term service.
Long Ge, deputy director of the Center for Innovation and Risk Management at the University of International Business and Economics, told reporters that the new measures will significantly impact both insurance companies and agents. For instance, agents must transition from "script-based sales" to becoming "protection and asset allocation advisors." They will need to obtain qualifications, maintain records, avoid rebates, and refrain from overstating cash values. In the future, only professionalism will enable them to retain clients.
How should insurance institutions and their sales personnel adapt to the new regulations? According to Guo Jinlong, for insurance institutions: - Establish supporting credit record systems and upgrade information management platforms to enable traceability and tiered classification of data. - Complete authorization agreements for sharing credit information between new and existing sales personnel; implement a quantifiable, actionable credit evaluation mechanism; objectively collect comprehensive credit data across all categories; prevent tampering or concealment of information. - Ensure proper record retention, handle disputes effectively, facilitate credit remediation, enforce strict data security protections, submit required records to industry associations, establish compliant inquiry channels, and strengthen public oversight and reporting mechanisms.
According to Yang Fan, sales personnel should shift from a "business-oriented" approach to one that is "professional, compliant, and focused on long-term service." Sales activities—including product introductions, needs analysis, benefit illustrations, and customer communications—must strictly adhere to regulatory and organizational requirements. This ensures avoidance of exaggerated claims and misleading sales practices.
