Multiple Onlookers but No Bidders Yet! Three Insurance Broker Equities to Be Auctioned: Some Targets Have Abnormal Operations and Long-Term Business Suspension

Everyday Economic News Reporter | Yuan Yuan Everyday Editorial | Wei Weny

On March 18, a reporter from “Daily Economic News” (hereinafter referred to as “the reporter”) learned from Alibaba Asset Platform that recently, the equity of three insurance intermediaries will be auctioned by judicial auction, namely Shenzhen Sheng’an Insurance Brokerage Co., Ltd. (hereinafter referred to as “Sheng’an Insurance Brokerage”), Baocheng Insurance Sales Co., Ltd. (hereinafter referred to as “Baocheng Insurance Sales”), and Guizhou Zhongyang Insurance Agency Co., Ltd. (hereinafter referred to as “Zhongyang Insurance Agency”).

From the current listing situation, there are many onlookers, but no one has registered yet. The reporter noted that compared to the highly capital-driven scene of a few years ago, in recent years, there have been frequent cases of failed auctions of insurance intermediary equity, and market attention to such assets has cooled.

Industry insiders analyze that the current profit model of the insurance intermediary industry is facing challenges. The “reporting and operating as one” policy has compressed fee margins, and the comprehensive reform of auto insurance has further lowered commission rates. Traditional intermediary agencies mainly relying on “channel” business have seen their profit margins significantly shrink. Simply holding licenses no longer guarantees liquidity, and licenses lacking actual business scenarios and digital capabilities are gradually becoming “negative assets.”

Three insurance intermediary equities awaiting auction, with some targets operating abnormally and long-term inactive

According to public information, the equity proportions of the three insurance intermediaries to be auctioned vary. Sheng’an Insurance Brokerage’s auction involves 10% of its equity with a starting price of 3.0336 million yuan; Baocheng Insurance Sales’ auction involves 100% of its equity with a starting price of 6.3777 million yuan; Zhongyang Insurance Agency’s auction involves 90% of its equity with a starting price of 3.072 million yuan.

Image source: Alibaba Asset Platform

These three equity auctions will be held on March 19, March 28, and March 30, respectively. Since insurance intermediary licenses are a type of financial license, the auction announcement reminds bidders to confirm they meet the relevant qualification requirements before participating. It is recommended to consult local administrative authorities in advance for specific policies. If the transaction fails due to the buyer’s lack of qualification, legal consequences such as regret auction will be borne accordingly.

Image source: Alibaba Asset Platform

The target descriptions show that some insurance intermediary equities have certain flaws. For example, Zhongyang Insurance Agency has been listed as operating abnormally; its insurance intermediary license was issued on June 28, 2022, but due to long-term inactivity, the validity and usability of this license cannot be guaranteed. Sheng’an Insurance Brokerage requires bidders to pay a prepayment equal to the full sale price when registering to participate. If the final price exceeds the prepayment, the excess must be paid into a court-designated account within the specified time.

Image source: Alibaba Asset Platform

The reporter noted that as of 7 p.m. on March 18, the number of viewers on the auction pages for the three insurance intermediary equities exceeded 100 each, but no one has registered yet. In fact, since 2021, there have been multiple cases of failed auctions of insurance intermediary equities on Alibaba Asset Platform. For example, in 2023, 70% of the equity of Rongchao Insurance Brokerage was auctioned, but despite measures like second auctions and price reductions, it still attracted no bidders; in 2024, the 100% equity of Guangzhou Huixin Insurance Agency held by Meichen Insurance Brokerage also failed to sell.

Why are insurance intermediary licenses, once highly sought after by capital, now cooling off?

“The core reason for the cooling of capital enthusiasm is that the industry development logic has shifted from ‘land grabbing’ to ‘quality improvement and efficiency enhancement’,” said Yuan Shuai, Deputy Director of Investment at the China Urban Development Research Institute. On one hand, regulatory policy changes have reshaped market expectations. The new “National Ten Rules” for the insurance industry strengthen regulatory guidance, promoting high-quality development over scale expansion, significantly raising thresholds and compliance costs for equity transactions, and entering a reshaping period for industry valuation systems. On the other hand, the scarcity of licenses is decreasing. With the popularization of internet insurance, the traffic and service advantages of small and medium-sized intermediaries are gradually weakening, compounded by some institutions’ poor operational performance, with many shareholder equities pledged or frozen, increasing investors’ concerns about potential operational risks.

The insurance intermediary market will move toward “specialization, digitalization, and compliance”

As an important part of China’s insurance market, insurance intermediaries play a key role in insurance transactions. However, in recent years, under the background of “reporting and operating as one” and regulatory efforts to “clear虚 and提升 quality,” the industry has entered a period of development pain.

Gao Chengyuan, President of the Vision Impact Research Institute, believes that the current market shows a polarization trend with an intensified “Matthew effect.” Leading insurance institutions leverage scale, technological investment, and ecological resources to accelerate integration, while small and medium-sized intermediaries face survival difficulties. The industry’s pain points include serious homogenization—most small and medium agencies still rely on traditional commission models, lacking differentiated service capabilities. Under the dual pressures of regulatory “清虚提质” and market competition, “shell” agencies are being rapidly淘汰. In terms of cross-industry代理, channels like banks and car dealers, despite their traffic advantages, also face revenue declines due to rate reforms. Overall, the market is transitioning from “quantity expansion” to “quality differentiation.”

From the demand side, the insurance intermediary market still has growth potential. Zhi Yuanpei, Vice President of the Investment Professional Committee of the China Investment Association, said that the long-term driving forces come from two aspects: first, the increase in insurance density and penetration rate. As residents’ wealth grows and risk awareness strengthens, demand for保障型 products such as养老 and健康 continues to release, and the need for专业咨询 and定制化 services rises; second, the increasing complexity of insurance products has generated demand for专业 services. Products like annuities and增额终身寿 have increasingly complex clauses, and consumers’ demand for professional interpretation and claims assistance from intermediaries continues to grow.

“Long-term, the insurance intermediary market will develop toward ‘specialization, digitalization, and compliance’,” Yuan Shuai said. Under sustained regulatory pressure, non-compliant small and medium intermediaries will gradually be淘汰, and market share will concentrate on compliant, capable institutions. Core competitiveness will shift from “customer acquisition” to “service,” with professional risk management and customized product design becoming fundamental. Digital transformation will accelerate, leveraging big data, AI, and other technologies to improve service efficiency, reduce operational costs, and achieve precise customer acquisition and personalized services. Additionally, cross-sector integration will continue, with future emergence of more comprehensive intermediary platforms combining health management,养老 services, wealth management, and other fields, breaking traditional insurance sales boundaries and providing clients with full lifecycle financial services.

Wang Wenxi, Vice Chairman of the China Enterprise Capital Alliance, pointed out that the insurance intermediary industry is undergoing a painful transition from “粗放扩张” to “提质增效,” and capital’s attitude toward licenses is shifting from “speculative pursuit” back to “rational allocation.” This is both a necessary result of strengthened regulation and a sign of the industry’s maturity.

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