The Communist Party is now investigating the China Insurance Regulatory Commission and its chairman, Xiang Junbo. The insurance boss is suspected of committing acts of corruption.
The Central Commission for Discipline Inspection did not release details and said that Xiang is "suspected of severe disciplinary violations."
Xiang was the chairman of China's third-largest lender, the Agricultural Bank of China, and was a deputy governor of the People's Bank of China from 2004 to 2007.
He started as an auditor and rose the ranks to become the deputy governor of the central bank. He is now 60 years old and holds a doctorate in law.
He was wounded during China's 1979 military invasion of Vietnam and later was discharged from military service.
Last year, Xiang led a crackdown on shady dealings and illegal acquisitions made inside the insurance industry.
In February, the CIRC chairman said in a press conference that the agency "will never allow the insurance industry to be turned into a rich boys' club or become a sanctuary of large financial crocodiles."
He spearheaded policy reforms that made companies invest their funds for higher profits. He lifted the cap on equity investments to 40 percent.
By the first quarter of 2016, the collected premiums tripled to $86.4 billion in China. The amount comprised 38 percent of total life premiums in the world.
Xiang then moved that the premium was to be invested in the stock market. The decision led to a transfer of 1.89 trillion yuan, or 12 percent of total assets, that were put into a bad investment.
Many investors who were involved in the move are also under investigation. Other financial bigwigs include Huaxia Life's Xiao Jianhua and Sino Life's founder Zhang Jun.
An analyst said that the current probe into the insurance industry will not affect the current direction of the CIRC.