Insurance News
- Guangdong News
Date: 30-Nov-2006 Sources: (People's Daily)
China's insurance watchdog has withdrawn the business licenses of ten insurance brokers in the city of Shenzen in south China for providing false information on their company registration.
Even though some have performed well and had expanded over the past year, they have been ordered to cease operations, reported Thursday's Beijing News.
Insurance brokers act as go-betweens for insurance companies so the closure of the brokers is not expected to affect policy holders.
According to regulations insurance brokers must have a registered capital of more than ten million yuan (1.28 million U.S. dollars). All the companies that were ordered to close had lied about their registered capital.
China launched an audit of insurance brokers' registration information after two brokers where found to have supplied false documents.
Shenzhen Datang Insurance Brokers and Shenzhen Dexin Insurance Brokers were among the ten brokers according to watch dog's website which also lists the other companies that were forced to close.
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