An employee from the business management department of Ruizhong Life Insurance Co., Ltd. Shaanxi Branch, along with colleagues, has contacted media outlets to report the company's alleged misconduct. They claim the company uses fabricated national subsidies, promises of high returns, and gift giveaways to lure elderly individuals into purchasing insurance policies, effectively swindling their retirement savings. Mr. Yao, the employee, stated that these practices not only result in many seniors losing their life savings but also shift blame onto the sales staff, who then face the risk of bearing high compensation costs. Their goal is to push for the company to sell insurance legally and compliantly.
On July 28, Mr. Yao reported to the media that, as a Ruizhong Insurance employee, he is making a public accusation that the company is involved in fraudulent and misleading tactics, particularly targeting the elderly, during the insurance sales process. He expressed distress at seeing seniors being coaxed into spending their retirement money on policies that fail to deliver the promised returns or require continuous high payments. The employee and his colleagues outlined several specific illegal activities, including purchasing customer information from other companies to call and invite people with offers of free daily necessities, conducting centralized product seminars instead of normal customer service, and fabricating concepts like "national subsidies" and "policy rebates" to convince clients that purchasing insurance would yield extra benefits, even promising cash returns beyond the contract.
Mr. Yao noted that the country only offers subsidies for items like home appliances, never for insurance, yet the company instructs staff to claim otherwise. He also pointed out that insurance returns are not fixed by law, but the company tells salespeople to promise clients a 3% to 4% return rate, which is much higher than bank interest, deceiving many seniors into investing their money. As a veteran in the insurance industry with over a decade of experience, Mr. Yao cited legal provisions that prohibit such actions, including false or misleading advertising under the Consumer Protection Law, and the ban on deceiving policyholders under the Insurance Law. He also highlighted that offering gifts and rebates to secure policies violates the Insurance Law's prohibition on giving benefits outside the contract, and that the unregistered sales gatherings pose a significant risk, especially for the elderly who are more vulnerable to information asymmetry.
Mr. Yao described seeing seniors who feel cheated coming to the company to demand their money back, only to find it impossible. He recalled one case where an elderly person was tricked into buying a 2 million yuan policy. When they tried to cancel it, they could only get back 1.08 million yuan, leaving them in tears. He added that when disputes arise, the company blames the sales staff, calling it a personal act, which forces some employees to bear the cost or leave the company. One of his female colleagues said a recent incident led to a staff member being forced out due to customer complaints. Mr. Yao and his colleagues have repeatedly raised these issues with senior management and submitted written materials, but received no response. Their demands include an immediate stop to the illegal practices, punishment of those involved, and a review of policies sold through these methods to protect consumer rights.
On the same day, a reporter from the media visited Ruizhong Insurance's business area under the guise of seeking insurance advice and observed the alleged misleading practices still in progress. In a meeting room, salespeople were seen persuading elderly clients, with one telling a woman that buying insurance would yield a better interest rate than bank deposits, while another discussed gifts like milk and flour. In a nearby "classroom" with the door closed, a presentation was being given to a room full of seniors. Mr. Yao stated that this is where staff fabricate national subsidy policies and promise high returns, effectively brainwashing the elderly. He also mentioned that the company clears computers and phones of incriminating content before supervisory inspections to avoid detection.
A citizen, Mr. Li, described his own experience, saying his 75-year-old father lost 70,000 yuan after buying three insurance policies from Ruizhong Insurance in 2022. The father, who has mild Alzheimer's, was lured by gifts and promises of high returns, but later realized the policies required continuous payments, leading to a loss. The family's attempts to resolve the issue with the company have been met with evasion.
When the reporter approached the company for comment, the front desk staff stated that the company refused to accept an interview. An insider suggested that the employees' whistleblowing might be linked to upcoming personnel policy changes in the business management department, which could lead to forced departures. However, the insider confirmed that the sales issues raised by Mr. Yao are indeed real. The media also contacted the National Financial Regulatory Administration's Shaanxi Bureau, which confirmed receipt of the report and said it would issue a survey notice to the company and conduct an on-site investigation. The bureau noted that it has received multiple complaints about Ruizhong Insurance and will respond after the investigation is complete.
Data from the "Black Cat Complaint" platform shows that between March and July of this year, there were 440 complaints about Ruizhong Insurance, with frequent issues such as "inducing consumption," "false advertising," and "refusing to cancel policies." Other complaints include a 71-year-old man being guided by a salesperson to purchase a large policy despite not having the means to pay, and an elderly couple in Changsha being told they could withdraw their money at any time, only to find they could only get back a fraction of their investment. Lawyers have emphasized that insurance companies cannot deceive policyholders or offer benefits outside the contract, and that the company is liable for the actions of its employees during work. The incident serves as a warning for insurance companies to improve their internal controls and protect the elderly from being misled.
The National Financial Regulatory Administration's Shaanxi Bureau has confirmed it will investigate Ruizhong Insurance Shaanxi Branch for potential violations of regulatory standards. The bureau has informed Mr. Yao that it will issue a formal notice and proceed with an on-site examination. The investigation is expected to be completed within two months, with a written response to follow. This case highlights the need for stricter oversight of insurance sales practices, especially those targeting vulnerable populations like the elderly.
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