Tencent’s insurance platform WeSure slapped with fine for misleading marketing

Name: Chinese internet companies take the lead in affordable health insurance for working class and poor
Uploaded: 2020-08-18T07:35:04.000Z
Duration: 4 min 42 s
Description: Chinese internet companies take the lead in affordable health insurance for working class and poor

WeSure enables consumers to buy various insurance products online via Tencent’s social media networks WeChat and QQ

The disciplinary action shows that Beijing is determined to regulate the world’s biggest internet market with a strong hand, as it continues to grow

Reading Time:2 minutes

Why you can trust SCMP

The app of Tencent WeSure Insurance is displayed on a smartphone. The online insurance platform of internet giant Tencent Holdings had more than 170 million users as of April this year. Photo: Agence France-Presse

Iris Deng

Published: 3:35pm, 18 Aug 2020Updated: 6:40pm, 19 Aug 2020

Chinese regulators have slapped Tencent WeSure Insurance with a 120,000 yuan (US$17,293) fine for running a misleading marketing campaign, amid a surge in online health care coverage in the country because of the coronavirus pandemic.

WeSure, the online insurance subsidiary of internet giant Tencent Holdings, tried to boost demand for its insurance products by claiming that only a limited number would be available to consumers, according to a notice posted online by the China Banking and Insurance Regulatory Commission’s Shenzhen office on Monday.

It said WeSure had replaced the “enrol” button with one marked “collect” on a mobile site for hospitalisation insurance applications. Tencent’s online insurance platform also failed to provide guidance to customers about truthful disclosure of health conditions, according to the notice.

The regulator said the fine imposed was based on articles in China’s insurance law, which prohibited deceitful behaviour towards insurance applicants.

04:42

Chinese internet companies take the lead in affordable health insurance for working class and poor

WeSure said it had rectified the issues raised by the industry regulator in November last year, adding that the company would continue to step up quality control on its platform, according to a company statement.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x