Recently, the Financial Regulatory Authority’s official website disclosed administrative penalty information involving two former risky insurance institutions and their relevant responsible persons, with many individuals facing business bans.
Thirteen responsible persons from Yian Property & Casualty Insurance received warnings and were collectively fined 1.71 million yuan. Former chairman Li Jun had his position revoked, and former general manager Cao Haijing was banned from the insurance industry for five years. The company’s main violations included illegal use of funds harming its interests, entrusting unqualified entities to conduct insurance sales, breaching insurance terms and rates, and providing false reports and materials.
Yian Property & Casualty Insurance, part of the “Tomorrow Group,” was taken over by regulators in July 2020. By March 2022, it was insolvent with a net asset value of -120 million yuan. The company entered bankruptcy reorganization in July 2022, was reorganized within a year, and in May 2023, BYD Auto Industry acquired its equity. It was later renamed Shenzhen BYD Property Insurance and increased its capital by 3 billion yuan.
Huaxia Jiuying Asset Management also faced penalties, with 25 responsible persons warned and fined a total of 2.66 million yuan. Several individuals, including Ding Desheng and Zhao Yugang, had their qualifications revoked and were banned from the industry for life.
Zhang Hongtao was banned for 15 years, and Chen Hui for five years. Other responsible persons were banned for one year. The company’s violations included false records in related party reports, assisting other institutions in inflating solvency, and significant losses due to illegal fund use.Originally controlled by Huaxia Life Insurance of the “Tomorrow Group,” Huaxia Jiuying Asset was taken over in 2020. In April this year, Ruizhong Life Insurance acquired 99% of its equity.
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