Chinese Antitrust Agency Imposes Fines For Coinsurance

In December 2015, Chinese Antirust Agency, the Hubei Administration for Industry and Commerce ("Hubei AIC"), disclosed its punishment on 12 insurance companies for signing illegal coinsurance agreements. In this case, Chinese antitrust agency considered a coinsurance for Construction Project Personal Accident Insurance illegal. 12 insurance companies were fined CNY 4.69 million in total. It is not the first time that insurance companies and coinsurance targeted by China's antitrust agencies.

Major Contents of the Coinsurance Agreement

The disclosed punishment decision suggests that the Hubei branch of China Pacific Life Insurance ("the Company"), 11 other insurance companies and Wuhan Construction Safety Technology Consultation Center ("WCSTCC") signed a Coinsurance Agreement on Construction Project Personal Accident Insurance ("Coinsurance Agreement") of which the main contents include: