Banking and insurance channel cost control upgrade: "Small accounts" space is being squeezed

WealthCoffee · 2026-03-28T13:57:54+00:00

In 2023, financial regulatory authorities implemented the "report and conduct as one" policy for personal insurance, leading to a significant reduction in commission fees in the banking and insurance market, and industry cost reduction and efficiency improvement. However, intense competition has resulted in prominent "small account" issues. Regulatory agencies are strengthening expense management for bancassurance channels to close the loopholes for "small accounts" and enforce insurance companies' management responsibilities.

WealthCoffee

2026-03-28 13:57:54

Abstract generation in progress

[Caixin] Since the comprehensive promotion of the “reporting and operation in one” policy by financial regulatory authorities in 2023, the commissions in the bancassurance market have seen a significant reduction, leading to notable cost reductions and efficiency improvements in the life insurance industry. However, alongside the reduction in large commissions, intense competition in bancassurance has also highlighted the increasingly prominent “small account” issues (see Caixin Weekly’s “Plugging the ‘Small Account’ in Bancassurance”).

According to Caixin, in response to the new situations and problems arising in the current market, regulatory authorities have proposed more refined requirements for fee management in bancassurance channels under the existing “reporting and operation in one” regulatory framework, with the primary goal of plugging the “small account” loophole and further implementing the management responsibilities of insurance companies.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes