China to lower banks’ handling fee for sales of insurance products – report
POLICY & REGULATION
China to lower banks’ handling fee for sales of insurance products – report
POLICY & REGULATION

China to lower banks’ handling fee for sales of insurance products – report

 

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Chinese regulators plan to reduce the handling fee rate for insurance through banking channels by more than 60% from 40% to 14%, reported Chinese news outlet National Business Daily, citing banking sources.

The adjustment is expected to be made by the end of September, which may pose a significant impact on banks’ intermediary handling fee income, the report said.

The banking channel has been one of the major channels for the sale of insurance products and its main cooperation mode is obtaining premium income and customer resources through the banking channel by insurance companies. 

Banks sell insurance products on behalf of insurance companies to their customers through well-established sales network, so as to obtain handling fee and commission income as well as to improve the allocation of customers’ wealth management products.