The controversy surrounding Ruizhong Life Insurance has escalated after a former employee filed a report, with the company claiming the whistleblower is a disgruntled former agent dismissed for failing performance reviews.
“If I keep doing this, my conscience will be uneasy!” This statement has fueled a growing debate about the practices of Ruizhong Life Insurance’s Shaanxi branch, sparking widespread discussion within the insurance industry and among the public. The incident was initially reported by a local media outlet, and as the company’s official response has emerged, conflicting narratives have surfaced.
According to the initial report, a staff member named Mr. Yao from the business management department of Ruizhong Life Insurance’s Shaanxi branch, along with colleagues, filed a formal complaint. They alleged the company engaged in multiple sales violations, using routine marketing tactics to target elderly individuals, thereby infringing on consumer rights. The core allegations were divided into three main areas: first, the company acquired customer information from external sources to precisely target senior citizens, using free gifts of rice, flour, oil, and daily necessities as bait for mass phone calls to invite them to events; second, once attendees arrived, regular customer service was not provided, but instead, product pitches were organized, using forced explanations, creating a buying frenzy, and manufacturing a sense of urgency to aggressively sell insurance products; third, during the pitches, concepts like “national subsidies” and “policy benefits” were fabricated to mislead elderly consumers into believing they would receive additional official benefits, while also promoting off-contract rebates and extra returns.
Mr. Yao and others stated that these marketing models put the retirement funds of many elderly people at risk. If policy cancellations or claims disputes arise, the company shifts all blame onto frontline staff, forcing them to bear high compensation costs and the risk of being held accountable even after leaving. This internal controversy is significant, with employees stating, “If I keep doing this, my conscience will be uneasy.”
Notably, the initial report claimed the whistleblowers were internal staff responsible for after-sales service and complaint handling, occupying core positions, and thus possessing strong internal credibility due to their firsthand experience with the alleged violations. In response to this controversy, the Youdao public account received a copyright infringement complaint from Ruizhong Life Insurance, which completely refuted the identity of the whistleblowers and the core details of the allegations. The complaint stated that the report was not a legitimate internal compliance action but a malicious act of revenge by former employees. Ruizhong claims: “The report that Ruizhong Insurance was reported by multiple internal staff is actually from a few former external agents, who were dismissed for failing performance reviews and are now maliciously seeking revenge. Mr. Yao is an external agent. The claim that an elderly person bought a 200,000 policy but only got 108,000 back is severely inaccurate; the actual refund was the full amount. The promised 3-4% returns were merely estimated returns. The entire content is severely inaccurate, and the original media outlet has already retracted all reports.”
After the controversy escalated, on August 10, Ruizhong Insurance told a financial news outlet: “The company has set up a special task force to fully launch an internal investigation and self-correction. We always adhere to lawful and compliant sales practices, and any violations found will be dealt with strictly and rectified to protect consumer rights.”
It is worth noting that during this whistleblower storm, Ruizhong Insurance is actively advancing its compliance system. On August 7, the company announced the launch of a “Compliance Together” campaign, stating that compliance is the core foundation for the stable growth of the financial industry and the key to protecting customer interests. The company will continue to implement a three-year compliance action plan, adhering to the concept of “compliance starts from the top, all-staff proactive compliance, and compliance creates value.”
Currently, regulatory authorities have formally intervened in the investigation. According to the Shaanxi branch of the National Financial Regulatory Administration, the formal complaint has been accepted, and an investigation notice will be issued to Ruizhong Insurance, with on-site inspections to follow. The investigation process is expected to be completed within two months, and the final findings will be provided in writing to the whistleblowers. The true situation, the existence of sales violations, and the determination of responsibility still await the official conclusion from the regulator.
Comments