China's National Financial Regulatory Administration issued a notice requiring insurers to further reform the individual marketing model in the life insurance sector, strengthening constraints and guidance over insurance sales personnel and upgrading the personal agent channel. The measures focus on raising professionalism, reinforcing end-to-end company management of sales staff, and reshaping remuneration to support long-term, service-oriented distribution. The notice calls for organisational structures, promotion pathways and commission and pay incentives that support sustained client service, including commission designs and deferred payment mechanisms linked to business quality and service quality, and balanced incentive arrangements for different types of sales personnel. It also requires insurers to take primary responsibility for internal controls, deepen implementation of “reporting and sales consistency”, enhance risk monitoring, early warning and intervention, establish commission and remuneration clawback and offset mechanisms where sales misconduct causes economic losses, and improve suitability management. Regulators will apply stricter supervision and enforcement, and professional insurance agencies and brokers are expected to follow the notice to ensure consistent conduct requirements across channels; the notice also supports industry-wide standards for product classification and salesperson grading, integrity information management and use, and a professional honour evaluation system, alongside company measures such as compliance training and integrity recordkeeping and support for sales personnel to access social insurance as flexible workers and related administrative services.

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