New China Life Insurance Company Ltd. (NCI) received nine regulatory penalties in January 2026, the first month of its "Golden Start" annual sales campaign. Nine of the company's branches were penalized for regulatory violations, ranking first among all life insurance companies in both number of penalties and penalized institutions.
The most frequent violation involved "providing benefits outside contract terms," with three branches penalized for this practice. This issue has been a recurring problem for NCI, with nine branches fined over 1.8 million yuan for similar violations during the past year.
Despite significant premium growth, regulatory authorities have repeatedly notified NCI about declining business quality, describing it as "still in a downward trend" and noting "insufficient core competitiveness." Additionally, the company faces prominent governance risks due to frequent occupational crimes among senior executives.
Among the specific penalties, NCI's Hebi Central Branch was penalized for providing unauthorized benefits to policyholders, using insurance agents to obtain illicit fees, and having inadequate internal controls, resulting in a warning and 200,000 yuan fine. The Nanping Central Branch was fined 190,000 yuan for providing extra-contractual benefits, creating fictitious intermediary business, and maintaining inaccurate financial records, with three responsible managers receiving individual penalties.
The Yantai Penglai Branch was fined 52,100 yuan for providing unauthorized benefits, while its manager received a warning and 10,900 yuan fine. Two other branches were penalized for "deceiving policyholders" or similar conduct, with the Binzhou Central Branch fined 340,000 yuan for misleading policyholders and fabricating financial documents.
Other violations included the Jinan Central Branch being fined for delegating health insurance sales to medical staff, and the Jining and Yantai branches being penalized for falsifying financial materials. The Heihe Central Branch received penalties for inadequate internal controls.
NCI's internal documents reveal substantial spending on client benefits, including 1.8 million yuan allocated by the Inner Mongolia Branch for premium client services such as laundry, chauffeuring, and airport transfers. The Beijing Branch spent 492,000 yuan in November 2025 on corporate visits and cultural activities for clients, while the Shandong Branch allocated 958,400 yuan for a Shenzhen trip serving 247 clients at approximately 3,900 yuan per person.
Industry experts confirm that client trips, gifts, premium rebates, and similar benefits constitute regulatory violations that have been consistently targeted by authorities. A previous case involving another insurer's "Inner Mongolia grassland tour" rewards resulted in a 120,000 yuan fine.
While NCI reported 195.899 billion yuan in premium income for 2025, representing 15% year-over-year growth, regulators have repeatedly flagged the company's declining business quality. A March 2025 notification from the National Financial Regulatory Administration highlighted concerns about decreasing solvency ratios, deteriorating business quality, and rising customer complaints.
The company's governance risks were further highlighted when former chairman Li was sentenced to death with a two-year reprieve in November 2025 for embezzling 108 million yuan and accepting bribes totaling 105 million yuan. NCI's solvency reports also disclosed ongoing investigations into provincial branch managers for occupational crimes, including one case identified through internal audits in September 2023.
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