Recently, there have been rumors circulating in the market about the Deputy General Manager and Party Committee Member of the largest property insurance company in China, the People’s Insurance Group of China, being taken away. The news of Yu Ze, also the Secretary of the People’s Insurance Party Committee and the CEO, being taken away has not been officially confirmed, but today (December 1st), the related stock prices of People’s Insurance in the A-share and Hong Kong stock markets both experienced significant declines, causing a sudden shake in the financial circle.
Over the weekend, rumors of Yu Ze being taken away began to circulate within the industry. According to “Securities China,” several people with close ties to People’s Insurance of China have confirmed this news. It is understood that a party committee meeting has been convened by People’s Insurance in response to this situation. While the news may seem sudden, some individuals have mentioned that Yu Ze’s trouble is “not unexpected” as he has been involved in “various reports” against him.
On December 1st, in the A-share and Hong Kong stock markets, the related stock prices of People’s Insurance experienced significant declines, with A-share People’s Insurance dropping by over 5% and Hong Kong-listed China People’s Insurance Group and People’s Property Insurance both plummeting by over 6% at one point.
Public records show that Yu Ze was born in 1971 and entered the insurance industry after graduating from Nankai University in 1994.
In March 2021, Yu Ze was appointed as the Secretary of the People’s Property Insurance Party Committee and was slated to become the CEO. With over 4 years in this position, Yu Ze has become the longest-serving among the recent five “top leaders” of People’s Property Insurance. During this time, there have been rumors circulating in the market about Yu Ze being transferred and promoted, which, however, did not materialize.
Data indicates that from 2021 to 2024, the annual premium income of People’s Property Insurance increased from 440 billion yuan to 540 billion yuan, with the market share remaining stable at over 30%.
Of the recent five “top leaders” of People’s Property Insurance, including Wang Yincheng, Lin Zhiyong, and Yu Ze, three of them have come under investigation.
Under the high pressure of anti-corruption in recent years, property insurance companies have become a heavily affected area within the insurance industry, which is believed to be related to the characteristics of their business. Property insurance companies have many business dealings with corporate clients and rely heavily on intermediary channels. For insurance executives who control resources, there are more convenient conditions for clandestine operations and profit-making.
In January 2023, Lin Zhiyong, the former Secretary of the Party Committee and CEO of People’s Property Insurance, was investigated and expelled from the Party. Official reports stated that Lin Zhiyong engaged in political cliques, resisted scrutiny, participated in superstitious activities, concealed major personal investments, intervened in major insurance claim matters, illegally accepted large intermediary fees, lived extravagantly, sought pleasure, and made decisions blindly, leading to significant losses in state-owned assets through arbitrary decisions in major business operations. He took advantage of his position and power to seek benefits for others and accept huge sums of money.
Aside from the CEO, several executives of the headquarters and branches of People’s Property Insurance have also been taken down.
In August 2024, Zhang Xiaoli, the former Party Committee Member and Chairman of the Supervisory Board of People’s Property Insurance, was removed from his position on allegations of serious violations of discipline and law.
At the branch level, in January of last year, Shan Rongguang, the former Secretary of the Party Committee and General Manager of the Hainan Branch of People’s Property Insurance, was expelled from the Party; in February of the same year, Li Chengzhu, the former Party Committee Member and Deputy General Manager of the Chongqing Branch of People’s Property Insurance, was investigated and expelled from the Party; in February of the same year, Sun Jian, the former Party Committee Member and Deputy General Manager of the Guangxi Zhuang Autonomous Region Branch of People’s Property Insurance, was placed under investigation.