On October 9, a financial news flash reported that the Financial Regulatory Administration recently issued the "Regulations on the Development and Management of Insurance Products for Property Insurance Companies" (hereinafter referred to as the "Regulations"). An official from the relevant department of the Financial Regulatory Administration stated that the "Regulations" consistently integrate strengthening product supervision, standardizing development management, and protecting consumer rights throughout.

The first is to adhere to the essence of insurance. It clearly stipulates that the development of insurance products must follow principles such as insurable interest, loss compensation, good faith, aleatory contract, and risk pricing. It prohibits the development of insurance products that lack contingency, underwrite speculative risks, have no actual protection content, or are purely for malicious speculation, or violate public order and good morals.

The second is to strengthen standards and norms. It requires that the wording of clauses adhere to standardization and normalization, proposing that individual clauses should be easy to understand and clear. For content that exempts or reduces the insurer's liability, it should be presented in a manner sufficient to draw the policyholder's attention, thereby effectively safeguarding consumers' right to know.

The third is to strictly manage responsibilities. It refines and clarifies the product development management responsibilities that should be borne at all levels of the company, and requires property insurance companies to establish internal accountability mechanisms to urge companies to develop products prudently.

The fourth is to strengthen continuous supervision. It requires insurance companies to assess product compliance and suitability, promptly adjust or cease selling products that are not suitable for continued sale, and strengthen full-process management of products.