6 insurance intermediaries "go missing", industry cleanup accelerates

A notice from the Shenzhen Financial Regulation Bureau seeking "missing" companies has once again brought the survival situation of the insurance intermediary industry into public view. On June 29, a Beijing Business Today reporter learned that the Shenzhen Financial Regulation Bureau recently issued a notice stating that it has initiated an investigation into Haiyun Insurance Agency (Shenzhen) Co., Ltd. (hereinafter referred to as "Haiyun Insurance Agency") for failing to pay the 2023 insurance professional intermediary regulatory fees as required. The regulator also stated that it has been unable to contact the company through other means. According to statistics from a Beijing Business Today reporter, since 2022, there have been six insurance intermediary companies involved in cases where "other methods of contact were unavailable," all of which are insurance agency companies.

Looking at the violations of the above companies, the issues involved include non-payment of regulatory fees, failure to report deposit of guarantee funds or purchase of professional liability insurance, long-term failure to submit regulatory data, etc. Some companies also have no one operating at their registered addresses and unreachable phone numbers. What exactly happens between an insurance intermediary company becoming "missing" and being placed under investigation?

Missing Intermediaries

As an important entity among insurance intermediary companies, insurance agency companies cover business operations including agency sales of insurance products, agency collection of insurance premiums, and agency handling of loss investigations and claims for related insurance businesses.

This means they directly connect insurance consumers with insurance companies and are an indispensable part of the claims chain. However, when an intermediary chooses to go "missing," the protection of consumer rights is likely left hanging in the air.

A recent notice from the Shenzhen Financial Regulation Bureau has drawn industry attention. Haiyun Insurance Agency has been placed under investigation for failing to pay the 2023 insurance professional intermediary regulatory fees as required and failing to report the deposit of guarantee funds or purchase of professional liability insurance to the Shenzhen Financial Regulation Bureau.

"Professional liability insurance can transfer compensation liability during practice through the insurance mechanism," said Fu Jian, director of Henan Zejin Law Firm. He also stated that if the regulator cannot contact the institution, and if it is later determined that it refused or obstructed lawful supervision and inspection, it indicates that the institution has effectively ceased normal operations or its financial condition has severely deteriorated. According to the Insurance Law of the People's Republic of China, refusal or obstruction of lawful supervision and inspection shall be ordered to correct and fined by the insurance regulatory authority. If the circumstances are serious, its business scope may be restricted, it may be ordered to stop accepting new business, or its business license may be revoked.

The Shenzhen Financial Regulation Bureau stated that it has been unable to contact Haiyun Insurance Agency through other means. It now orders Haiyun Insurance Agency through this notice to provide relevant supporting materials within a specified period and actively cooperate with the investigation. Otherwise, it will be deemed as refusing or obstructing lawful supervision and inspection and will bear corresponding legal consequences.

A Beijing Business Today reporter checked the National Enterprise Credit Information Publicity System and found that Haiyun Insurance Agency, established in 2008 with a registered capital of 10 million yuan, has been listed in the list of abnormal operations. Its branches and business departments have been cancelled or have their business licenses revoked.

Haiyun Insurance Agency is not an isolated case. According to statistics from a Beijing Business Today reporter, this is not the first time in recent years that regulatory notices have sought "missing" companies. For example, in June 2022, the former Shenzhen Banking and Insurance Regulatory Bureau issued an investigation notice to Shenzhen Anjie Insurance Agency Co., Ltd., pointing out that it had not paid the 2021 regulatory fees, etc., and that "other methods of contact were unavailable." Similarly, in 2022, a regulatory notice pointed out that Beijing Jingcheng Xinlian Insurance Sales Co., Ltd. had long failed to submit off-site regulatory data through the insurance intermediary regulatory information system and failed to review various notices, risk alerts, and other documents issued through the system. The regulator stated that because the company's registered address had no one operating and its relevant contact numbers could not be reached, it was unable to contact the company through other means.

Overall, since 2022, there have been six insurance intermediary companies that regulators have been unable to contact through other means.

Shuffle in Progress

According to information disclosed on the official website of the National Financial Regulatory Administration, it is not uncommon for insurance intermediary companies to voluntarily or involuntarily exit the insurance market due to missing status, violations, and other reasons.

In Fu Jian's view, if an insurance intermediary company fails to publish its annual report on time multiple times, is included in the list of abnormal operations, and is listed as a dishonest person subject to enforcement or goes missing, it indicates that the internal management of the insurance intermediary company has completely collapsed and it is no longer capable of normal operations or assuming social responsibilities.

In recent years, regulatory authorities in many places have repeatedly promoted the "clearing and quality improvement" of insurance intermediaries, eliminating institutions that do not meet regulatory requirements or are not operating normally. Data disclosed by the National Financial Regulatory Administration shows that from 2024 to 2025, a total of 3 insurance intermediary groups and 57 professional insurance intermediary legal entities were investigated, revoked, or cancelled nationwide; 3,730 branches of professional insurance intermediaries and 226 insurance concurrent business agencies were cleared out.

A deeper change in the current insurance intermediary market comes from the "unified reporting of fees and rates" policy. The financial models of intermediary institutions that previously relied on "high-cost-driven" models have rapidly collapsed. At the same time, the once extensive business model is no longer sustainable. With stricter regulations and intensified Matthew effect, institutions with weak business capabilities and illegal behaviors are doomed to be eliminated.

"Insurance institutions should establish internal compliance and risk prevention and control systems, strictly fulfill obligations for deposit of guarantee funds or purchase and reporting of professional liability insurance, conduct regular compliance self-inspections, and earnestly fulfill social responsibilities." Regarding how to avoid violations, Fu Jian stated that insurance intermediary companies should pay regulatory fees and deposit guarantee funds on time and in full. When facing operational difficulties, they should proactively report to regulatory authorities and seek guidance, rather than passively evade.

It is worth noting that although some insurance intermediary companies are in crisis, opportunities still exist. In April, the second Insurance Intermediary Professional Committee of the China Insurance Association held its first standing committee meeting in Beijing. The meeting believed that 2026 is the first year of the "15th Five-Year Plan," and the insurance intermediary industry faces historic development opportunities. It must earnestly implement the work deployment of the National Financial Regulatory Administration, adhere to serving the real economy, serving people's livelihood protection, and professional development direction, and better meet the diversified insurance needs of the people.

According to industry insiders, the future insurance intermediary industry will move towards standardized and professional integration, with small, scattered, and chaotic institutions continuing to be cleared out. To survive, institutions must abandon extensive arbitrage models, deeply cultivate professional services, create differentiated value by combining data and scenarios, and strictly adhere to compliance bottom lines to survive the industry reshuffle.

Beijing Business Today reporter: Hu Yongxin

(Editor: Qian Xiaorui)

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