Mainland China bans non-claim premium refund products in new insurance rules

General insurance products that promise a premium refund if no claim is made may not be developed. The revised Provisions on Insurance Product Development by Property Insurance Companies, issued by the National Financial Regulatory Administration, take effect on 1 November 2026. They run to 8 chapters and 41 articles, and list eight categories of products that must not be developed.

The regulator announced the revision on its official website on 9 October 2026. The document replaces the Guidelines on Insurance Product Development by Property Insurance Companies, issued by the former China Insurance Regulatory Commission and in force from 1 January 2017. The revision renames it, turning the "guidelines" into "provisions".

8 chapters and 41 articles, from general provisions to supplementary rules

The provisions have 8 chapters: general provisions; basic requirements for product development; requirements for the terms and rates of main policies; requirements for the terms and rates of riders; requirements for product development management; evaluation, revision, and clean-up and cancellation; supervision and administration; and supplementary provisions.

The structure shows that main policies and riders each have their own chapter on terms and rates, and that evaluation, revision and clean-up and cancellation after a product is launched are handled in a separate chapter.

Eight red lines: the ones made public so far

According to media reports, the banned products include those with no actual coverage, or whose sole aim is to cut prices, raise prices or speculate maliciously. Products that promise to refund premiums if no claim is made, or to return other improper benefits, also may not be developed.

Securities Times also reported that insurance products lacking contingency, underwriting speculative risks or violating public order and good morals are banned.

The full text of the eight categories could not be verified item by item against the official document at the time of writing. This article lists only the items reported by the media.

A separate chapter for riders

The revision gives riders a chapter of their own. Securities Times described this as "the most notable institutional change".

Securities Daily noted that riders have made up a large share of products in the past but lacked detailed rules. The new provisions set requirements on naming, the framework of terms and rate-setting.

Principal officers to lead oversight

The provisions require property insurers to set up a product management committee led by a principal officer. According to Cailianshe, the committee reviews major matters in the development and management of terms and rates.

Securities Times reported that the chief compliance officer bears direct responsibility for reviewing terms, and the chief actuary for reviewing rates.

Analysis: what it means for recruitment teams

The following is editorial analysis and not part of the provisions. The available material shows no provision on how practitioners explain products to customers. The points below are inferences drawn only from the published product requirements, on what front-line explanations and new-recruit training might pay attention to.

• Explain the coverage clearly: "no actual coverage" and "promising a premium refund if no claim is made" are both on the list of banned products, so when presenting general insurance products the focus should be on the scope of cover itself, not on refund or price gimmicks.
• Distinguish main policies from riders: riders have their own chapter, with requirements on naming, framework of terms and rates, so it is worth explaining the relationship between the two when training new recruits.
• Keep up with product updates: the provisions include a chapter on evaluation, revision and clean-up and cancellation, so product materials and training content used by front-line staff should follow the latest product versions published by the company.

Inside the company, terms review and rate review each have a designated responsible officer. What front-line staff can do well is to explain every item of coverage clearly and accurately.

Compiled by the F50 Editorial Team from public sources, for general reference only and not professional advice. Details are correct as of the publication date and may change.