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

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 through judicial auction, namely Shenzhen Sheng’an Insurance Brokerage Co., Ltd. (hereinafter “Sheng’an Insurance Brokerage”), Baocheng Insurance Sales Co., Ltd. (hereinafter “Baocheng Insurance Sales”), and Guizhou Zhongyang Insurance Agency Co., Ltd. (hereinafter “Zhongyang Insurance Agency”).

Based on current listing information, there are many onlookers, but no one has registered yet. The reporter noted that compared to the highly capitalized scene of a few years ago, the past two years have seen frequent failed auctions of insurance intermediary equity, indicating a cooling market interest in such assets.

Industry insiders analyze that the profitability model of the insurance intermediary industry is currently facing challenges. The “Registration and Operation in One” policy has compressed fee margins, and the comprehensive reform of auto insurance has further lowered commission rates. Traditional intermediary firms mainly relying on “channel” business have seen their profit margins significantly shrink. Holding licenses alone no longer guarantees liquidity, and licenses lacking actual business scenarios and digital capabilities are gradually becoming “negative assets.”

From publicly available 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 take place 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 for specific policies in advance. If the transaction cannot be completed due to the buyer’s lack of qualification, legal consequences such as withdrawal from the auction will be borne accordingly.

Image source: Alibaba Asset Platform

The project description indicates 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 the license cannot be guaranteed. Sheng’an Insurance Brokerage requires bidders to pay a prepayment equal to the full sale price upon registration to qualify for participation. 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 7:00 PM on March 18, the viewing numbers for the auction pages of the three insurance intermediary equities all exceeded 100, 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, even after measures like second auctions and price reductions, 70% of Rongchao Insurance Brokerage’s equity still went unsold; 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 for equity transactions and compliance costs, and entering a phase of valuation system restructuring. On the other hand, the scarcity of licenses is decreasing. With the proliferation of internet insurance, the advantages of small and medium intermediaries in attracting traffic and providing services are gradually weakening. Coupled with some institutions’ poor operational performance and the fact that many shareholders’ equity is pledged or frozen, investor concerns about potential operational risks are increasing.

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 “Registration and Operation in One” and regulatory efforts to “clean up虚虚” and “提升质,” the industry has entered a painful development period.

Gao Chengyuan, President of the Long-term Influence Research Institute, believes that the current market shows a polarized pattern with an intensifying “Matthew Effect.” Leading insurance companies leverage scale, technological investment, and ecological resources to accelerate integration, while small and medium insurance intermediaries face survival difficulties. The industry’s pain points include severe homogenization—most small and medium institutions still rely on traditional commission models, lacking differentiated service capabilities. Under the dual pressures of regulatory “清虚提质” and market competition, “shell” institutions 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, stated that the long-term driving forces of the industry come from two aspects: first, the increase in insurance density and penetration rate. As residents’ wealth grows and risk awareness strengthens, demand for养老 and health保障 products continues to rise, along with professional consulting and customized services; second, the increasing complexity of insurance products has generated demand for专业 services. Products like annuities and increasing benefit whole life insurance have more complex clauses, leading consumers to seek professional interpretation, claims assistance, and other value-added services from intermediaries.

“Long-term, the insurance intermediary market will develop towards ‘professionalization, digitalization, and compliance’,” Yuan Shuai said. Under sustained high-pressure regulatory policies, non-compliant small and medium intermediaries will gradually be淘汰, with market share concentrating in compliant, service-oriented 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, and future will see more comprehensive intermediary platforms combining health management,养老 services, wealth management, and other fields, breaking traditional insurance sales boundaries and providing full lifecycle financial services.

Bai 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 towards 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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