In a major exercise lasting over seven months, to detect, curb and resolve insurance fraud cases, the Chinese police and regulatory authorities have been able to resolve over 1400 insurance fraud crime cases amounting to more than CNY1.5bn ($205m).
According to a news report by Xinhua, Chinese government officials and police authorities addressing the media about the elaborate exercise said that it has brought stability to the insurance market and addressed the concerns of policyholders and general public.
Chinese ministry of public security head of economic crime investigation Hua Liebin said the seven-month joint crackdown which lasted from April to November 2024 identified and dismantled more than 300 criminal gangs involved in insurance fraud.
The special operation was launched by the ministry and the National Financial Regulatory Administration (NFRA) in late April last year, aiming to tackle growing concerns from public and insurance agencies over rising fraud activities.
NFRA head of investigation bureau Li Youxiang revealed that financial regulatory bodies at various levels provided over 12,000 clues to the police during the operation.
Mr Liebin said, "Police departments organised over 40 collaborative crackdown activities during this period. "The joint crackdown has helped clean up the insurance market and maintain financial order."
Fraudulent activities involving car insurance and personal accident insurance remain prominent. The officials said fraudsters staged fake crash accidents and some even resorted to illegal tactics, such as intentionally causing injuries, to secure large accident insurance payouts.
Mr Liebin said that fraudulent tactics are rapidly evolving, with new forms of insurance fraud emerging. He said, “Fraudulent activities are no longer confined to traditional insurance types; they have expanded to include employer's liability insurance, group accident insurance and shipping insurance."
He said that fraudsters often infiltrate the industry under various guises, frequently collaborating with insiders to commit organised crimes.
He warned about the risk of concealed fraud within companies that lack genuine insurance business qualification, which usually lure customers into purchasing their counterfeit insurance products in sectors such as transport, agriculture, livestock, fishery and renewable energy.
The police has urged the public to be more vigilant against fraud schemes, use official channels when purchasing insurance, protect personal information and ensure their rights are safeguarded under the law by rejecting illegal agents.