Shanghai insurance company probe shakes industry

Chinese police escorted the general manger of Shanghai’s largest insurance dealer back to China from Fiji on Monday as Shanghai regulators launched a fraud investigation into the company, Caixin reported, citing an official Xinhua report. Last week, the Shanghai branch of the China Insurance Regulatory Commission (CIRC) said Fanxin Insurance Agency was selling unauthorized fixed-income financial agreements. The company’s general manager, Chen Yi, had reportedly fled to Fiji with about US$81.7 million. Fanxin’s dealings have spurned scrutiny of the insurance industry, as well as of banks that sell such financial products.