China to tighten supervision of country's booming online insurance business

China's banking and insurance regulator issued draft rules on Monday to rein in risks accumulated in the country's booming online insurance sector.

The rules, on which the regulator is seeking public feedback till October 28, will ban unlicensed institutions and individuals from participating the online insurance businesses, including selling and offering consultancy services of insurance products, according to a statement released by the China Banking and Insurance Regulatory Commission (CBIRC).

"The fast development in the online insurance sector has exposed certain problems," the CBIRC said, "The rules are to effectively defuse the risks and protect the interest of consumers."