A senior leader at one of China’s largest state-backed insurers has come under formal scrutiny as authorities continue to focus on conduct in the financial sector. On Dec. 6, an official notice announced that Yu Ze, vice president of People’s Insurance Company (Group) of China Limited (PICC), was under investigation for “suspected serious violations of discipline regulations and laws.” The case is being handled jointly by the Communist Party of China Central Commission for Discipline Inspection and the National Commission of Supervision.
According to China Daily’s report, the statement did not provide further details about the alleged violations or whether they are linked to Yu’s responsibilities at PICC. As of publication, there has been no public comment from the insurer on the investigation.
The move adds to a series of enforcement and disciplinary actions involving senior figures in China’s insurance and asset management sectors, reinforcing the compliance, governance, and political risk environment in which industry leaders are operating.
While Ze’s case is at the investigation stage, another former insurance leader in China has already received a final sentence following a long-running corruption probe. The Jinan Intermediate People’s Court has issued a death sentence with a two-year reprieve to Li Quan, former Party chief and chairman of New China Life Insurance Company, following an extensive corruption case spanning more than a decade.
According to court findings reported by state media, Li’s criminal conduct covered both embezzlement and bribery. For embezzlement, the court imposed life imprisonment, permanent deprivation of political rights, and confiscation of all personal assets. On the bribery charges, the court ordered a death sentence with a two-year reprieve, again accompanied by lifetime political restrictions and total asset forfeiture. When combined under China’s sentencing rules, the death sentence with reprieve became the operative penalty.
The judgment concluded that between 2015 and 2024, Li unlawfully obtained more than 108 million yuan while serving in roles at New China Asset Management Co. and New China Asset Management (Hong Kong) Company. The court also found that from 2010 to 2023 he accepted more than 105 million yuan in bribes in exchange for facilitating transactions and investment subscriptions that favoured specific companies and individuals.
The court ruled that recovered embezzled funds should be returned to the institutions identified as victims, while any remaining shortfall remains subject to recovery measures. Proceeds from bribery, together with related interest, were ordered to be turned over to the state.
In its written decision, the court described the sums involved as “extraordinarily large” and said the conduct caused “significant harm to national and public interests.” At the same time, the court applied a two-year reprieve after citing several mitigating factors, including instances where the alleged offenses were not fully completed, Li’s voluntary disclosure of previously unidentified bribery acts, expressions of remorse, and his stated willingness to restore misappropriated assets.
While the mainland cases centre on financial crime and party discipline, a separate case in Hong Kong points to the conduct expectations that apply to insurance executives even when allegations relate to their private lives rather than to business decisions.
In 2023, 45-year-old Chow Ka-wai, a regional director at an insurance company, was sentenced to seven years in prison after being convicted of raping his 40-year-old Indonesian domestic helper following an incident involving heavy drinking in 2021. A High Court jury composed of six men found him guilty on one count of rape.
During sentencing, High Court Recorder Martin Hui Siu-ting characterised the case as a serious abuse by an employer of the trust placed in him by a domestic worker. He emphasised the need for a deterrent sentence in light of the nature of the offence and the power imbalance between an employer and a household employee.
According to local media reports, Hui also referred to the consequences for Chow’s family. At the time of the offence, Chow was married with two sons and a daughter. He has since divorced, and the three children are now being cared for by his 74-year-old mother. Hui acknowledged the impact of the imprisonment on the family but said that Chow must face the consequences of his actions.
