CHINA Trends and Developments Contributed by: Hao Zhan, Jia Wan, Xuelei Wang and Wei Cui, AnJie Broad Law Firm
Diversified dispute resolution mechanisms Against the background of increasingly complex insurance policy types and an upsurge in disputes, the establishment of diversified dispute resolution mechanisms has become a new trend, in addition to the traditional dispute resolution measures of litigation and arbitration. In March 2025, the National Financial Regulatory Administration, the People’s Bank of China and the CSRC jointly issued the Opinions on Promoting the High-Quality Development of Financial Dispute Medi- ation (the “Opinions”), a comprehensive policy docu- ment comprising 23 articles across seven sections. The Opinions apply across banking, securities and insurance sectors, and aim to enhance the institu- tional framework, functionality and overall efficiency of financial dispute mediation in China. The initiative seeks to establish a well-structured, efficient and widely trusted mediation system that delivers meas - urable improvements in public satisfaction and trust in the financial dispute resolution process. A diversified dispute resolution mechanism involves the resolution of a dispute through mediation in the form of non-litigation by insurance industry associa- tions, arbitration institutions, courts and other third parties, when an insured and an insurer in a dispute cannot reach a settlement by themselves. According to the different participants, there are three main diversified dispute resolution mechanisms in the insurance industry: • the first model involves the insurance industry association leading the parties in settling the dispute, with guidance from the National Financial Regulatory Administration; • the second model involves the administrative organs as the main body leading the two parties settling the disputes; and • the third model involves the arbitration institution as the main body leading the parties settling the disputes through mediation or settlement, instead of arbitration procedures.
In recent years, valuable experience has accumulated in the establishment of diversified dispute resolution mechanisms. However, there are certain shortcom- ings, as follows: • first, the legal and regulatory system has not been well established; • second, the publicity and popularisation of diver- sified dispute resolution mechanisms need to be strengthened; and • third, the various dispute resolution mechanisms require enhanced financial support. Outlook and conclusions The landscape of insurance litigation in China is poised for significant evolution. As regulatory oversight inten- sifies and consumer awareness grows, disputes over policy interpretation, claims denial and disclosure obli- gations are expected to rise. The increasing complex- ity of insurance products, particularly in areas such as health, cyber, and ESG-related coverage, will likely give rise to novel legal questions. Courts are gradually developing more sophisticated approaches to insur- ance disputes, supported by judicial interpretations and pilot programmes aimed at standardising rulings. Moreover, the integration of technology in dispute resolution, including online litigation platforms, will enhance efficiency. However, challenges remain, including inconsistencies in local judicial practice and the need for greater transparency. Overall, the trend points towards a more litigious yet maturing insurance legal environment, where clarity in policy wording, compliance with regulatory requirements and proac- tive risk management will be critical for insurers to navigate future disputes effectively.
83 I NSURANCE L I T IGATI O N 2026
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