China insurance sector faces celebrity livestreaming and illegal agency risks

The Chinese insurance sector is facing scrutiny over two distinct trends: celebrity-led livestreaming sales and illegal agency operations for policy cancellations.

Several celebrities, including Li Chen, have begun appearing in livestreaming rooms to promote insurance products. While these individuals are displaying valid professional licenses, industry experts warn that the fast-paced nature of livestreams can lead to the simplification of complex information, such as health disclosures and exclusion clauses. Consumers are advised not to make hasty decisions based solely on trust in celebrities.

Simultaneously, a black market of illegal insurance agencies is targeting policyholders with promises of “full refunds” or “high-ratio cancellations.” These intermediaries often use deceptive tactics on social media to lure customers into canceling long-term life or critical illness insurance. Such practices can lead to financial loss, data breaches, and legal risks for consumers who may inadvertently participate in fraudulent activities.

Regulatory bodies, including the National Financial Regulatory Administration and the Ministry of Public Security, have launched crackdowns on these illegal financial intermediaries to protect market order and consumer rights.