Shenzhen, ChinaMay 14, 2026 /PRNewswire/ — In recent years, “cancelling old policies to buy new ones” has become a new type of black-market scam in the insurance sector. Criminals impersonate staff from banks or insurance companies, using lures such as “policy upgrades,” “high returns,” and “premium discounts” to induce consumers to cancel valid policies and switch to “new products” they recommend, or even directly defraud them of funds. Such activities not only severely disrupt market order but may also directly infringe upon your legitimate rights and interests. To this end, Cigna & CMB Life Insurance Co., Ltd. (referred to as “Cigna & CMB Life”) provides the following reminders to consumers:
Unveiling the Tricks: How Do They “Trap” You?
The “cancelling old to buy new” scheme is a chain of steps, typically including the following:
1.Precise Targeting, Impersonating Identities. Black-market groups reach out to you via phone, short-video platforms, social media apps, etc., impersonating bank or insurance company customer service representatives or “senior financial advisors,” under the pretext of “rewarding loyal customers” or “product upgrades.”
2.Creating Anxiety, Exaggerating Returns. They often first disparage your existing policy, claiming it has “low cost-effectiveness,” “incomplete coverage,” or “too little return,” then strongly recommend a “better” new product, promising “higher returns, more coverage, and lower premiums,” creating information asymmetry and anxiety.
3.Inducing Policy Cancellation, Skimming Commissions. After building trust, they gradually guide you to cancel your policy and require you to transfer the surrender value to a designated account for purchasing the new policy. Their true goal is to pocket the high first-year commission from the insurance company.
4.Money Gone, Disappeared. Once they obtain the funds, they quickly go silent, leaving you facing severe consequences such as loss of original coverage, financial loss, and even personal information leaks. The newly purchased policy often fails to match promises, resulting in a net loss.
Risk Warning: Falling into the Trap Leads to Heavy Losses
Participating in “cancelling old to buy new” activities may expose you to the following three risks:
Coverage Interruption, Net Loss. After cancellation, you lose your original insurance coverage. If a claim arises during the “waiting period” due to reasons other than accidental injury, you will not receive compensation. Additionally, as you age or your health changes, you may not be able to purchase insurance under the same terms in the future.
Financial Loss, Falling into Difficulty. Funds defrauded by criminals are often difficult to recover. Meanwhile, cancellation itself incurs financial loss, as the cash value of the policy is typically lower than the premiums paid.
Information Leakage, Endless Risks. Sensitive information such as your ID, bank card, and policy details provided during the “process” may be used by criminals for other fraudulent activities or even sold, leading to endless troubles.
Prevention Guide: How to Protect Your “Money Bag”?
Facing the “cancelling old to buy new” trap, please keep the following prevention guide in mind:
Use Official Channels. All policy management and services should be handled through the insurance company’s official customer service hotline, official app, or offline business locations. Do not trust unfamiliar calls, texts, or online links.
Verify Personnel Identity. If someone claims to be a “customer service representative” or “advisor,” call the official customer service hotline to verify their true identity and authorization.
Stay Rational. Be highly vigilant of any “benefits” promising “high returns, no risk, or full refund of premiums.” If in doubt, directly consult the official customer service hotline.
Refuse “Proxy Operations.” Never hand over policy details, ID, bank card, payment passwords, etc., to strangers for “proxy operations.”
Report and Seek Rights Protection Promptly. Once you discover you’ve been scammed, immediately call 110 to report it, and keep evidence such as call logs, chat records, and transfer receipts. You can also report issues through the insurance company’s official channels or the financial consumer complaint hotline.
Maintaining order in the insurance market and protecting consumers’ legitimate rights and interests is our shared responsibility. Let us work together, keep our eyes open, resist temptations, safeguard our policy rights and property security, and ensure that financial traps like “cancelling old to buy new” have nowhere to hide.