In the past five years, the Independent Commission Against Corruption has received an average of more than 40 corruption complaints from the insurance industry each year. Among them, 40% of the corruption complaints involving bribery and acceptance accounted for 40%, which is the highest in all categories.
"Shooting a single" means that the higher-level falsely claims that the insurance policy that he is responsible for is sold by the downline, so that he can earn the compensation of the upline and can also share the policy commission with the downline.
The ICAC smashed a "shadow agent" group with a larger scale than previous cases last month, involving 22 core members.
The former regional director of the insurance company in the case, together with 3 former branch managers, can take advantage of the benefits to induce 18 young people to join their insurance team. In addition to "singing orders", they will also use the information of existing customers or relatives and friends to insure "fake orders" In just two years from 2018 to 2020, 480 insurance policies were used to defraud the two insurance companies for a total of 51 million yuan in commission, far exceeding the total premium of 42 million yuan by more than 20%.
Further reading: Hiring cancer patients as substitutes to defraud critical illness insurance compensation involving 26 million insurance policies throughout China and Hong Kong
The group-style "single shot" shadow group that the ICAC smashed last month involved 22 core members, including 1 former regional director of an insurance company, 3 former branch managers and 18 former insurance agents, aged between 25 and 57.
Between 2018 and 2020, they "sold" as many as 480 insurance policies for the two insurance companies, involving a total of more than 42 million yuan in premiums, and the commission and bonus they defrauded as much as 51 million yuan, far exceeding the total premiums.
The senior executives in the case lured 25-30 year-olds who are "not deep in joining the WTO" and eager to seek jobs to join their team, stating that they do not need to sell insurance policies, "namely" act as handlers, and transfer the insurance policies to their names when they go online.
The 18 off-line involved in the case must turn in the bank card of the payroll account after being hired, or transfer the commission to the master brain according to the instructions, so as to earn 2,000 to 5,000 yuan per month.
Chen Jialiang, Chief Investigation Officer of the Executive Office, said that in order to achieve the company’s sales targets, the group would also purchase "fake orders" to earn regular bonuses, that is, embezzle the personal data of existing customers or relatives and friends to purchase insurance policies, and even make false statements in the fake orders. Customers' occupations, exaggerating their income and assets and other information, defrauded insurance companies to issue larger insurance policies, thereby earning more commissions; after the commissions are paid, they will immediately cancel these fake insurance policies.
Chen Jialiang said that the criminal tactics involved are not new, but the scale is getting larger. "This law enforcement action we have seen is relatively large, and the figures involved and the amount of deception are relatively high."
The premiums for purchasing insurance policies are also expensive. How can the group make money from it?
Chief Investigation Officer Zhang Jiabao of the Operations Department explained, "They have to pay for the first year of insurance premiums, and it is true that when they deal with or do something, they are all costs, but what? As long as the company receives a commission, the cost becomes so slight."
Zhang Jiabao also pointed out that this year's case is also involved in the high-level regional director. It is believed that people in other insurance companies knew about it and covered it in the form of corruption. It is believed that it was not a single person who caused the case. He emphasized that the case is still under investigation. Exclude higher-level staff from participating.
She continued that the downline involved in the case only received several thousand yuan in remuneration per month, which was not in proportion to the commission earned by the group. It is believed that a large part of the stolen money was "pocketed" by the masters behind the scenes.
When asked whether the insurance company has any loopholes in verifying the identity of the insured person, Zhang Jiabao believes that the insurance company verifies the identity of the insured person to a large extent relying on the responsible insurance agent. Well, this problem is more difficult."
As for how citizens can protect their information from being misappropriated and committing crimes, she said that if a client receives an unusual insurance policy, but the broker is vague and fails to explain clearly, he should immediately check with the insurance company. If it is suspected to be involved Illegal acts should be reported to law enforcement agencies such as the Independent Commission Against Corruption.
Hiring similar-looking cancer patients as substitutes to defraud critical illness compensation insurance policies involving 26 million insurance policies spread across China and Hong Kong ICAC launched the insurance industry's anti-corruption guideline. Insured persons were seen "rebirth" causing a 5 million compensation fraud case exploded and the ICAC sued the AIA insurance manager and Its offline fraud involving 130,000 yuan commission will be heard this Thursday
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