China Tightens Online Insurance Rules in Widened Crackdown

China tightened rules for online insurance sales, seeking to root out irregularities in a burgeoning business that has bolstered platforms like Waterdrop Inc. and Huize Holding Ltd.

The new regulations allow qualified insurers and brokers to sell online life insurance nationwide while banning those that fail to meet requirements including a 120% minimum solvency ratio for four consecutive quarters, according to rules released Friday by the China Banking and Insurance Regulatory Commission.

“Improper innovation” and “disorderly competition” by some players had hurt consumer rights and led to soaring complaints, the CBIRC said in a statement. The new rules ...