Mutual Insurance Regulatory upgrade on the road, small and medium risk looking forward to cross regional sales volume expansion


Mutual Insurance Regulatory upgrade on the road, small and medium risk looking forward to cross regional sales volume expansion

Original title Internet Insurance Regulatory upgrade on the road, small and medium risk looking forward to cross regional sales volume expansion

Song Wenjuan Cao Chi

Recently, the Banking and Insurance Regulatory Commission issued a "Notice on Continuing to Strengthen Internet Insurance Regulation Related Matters". The Banking and Insurance Regulatory Commission has indicated that it is speeding up the revision of the Interim Measures for the Supervision of Internet Insurance Business (hereinafter referred to as the Interim Measures) and that the original Interim Measures will remain in force until the new regulations are promulgated.

It is learnt that the Interim Measures shall come into force on October 1, 2015 and shall be implemented for a period of 3 years.

In the past three years, with the rapid development of Internet finance, the Internet insurance business has also shown a trend of accelerated development. As Internet insurance drivers change radically and insurance companies change to platform owners, some new risk trends have risen, challenging the existing regulatory system.

Previously, the CBRC allowed insurance business such as accident insurance and fixed-term life insurance to be extended to provinces, autonomous regions and municipalities without branches. Whether the Interim Measures will release more types of insurance, such as cross-regional sales of serious illness insurance, has become a focus of attention of insurance companies.

Internet insurance pattern changes

China's Internet insurance started very early, triggering a landmark event in the market is that in December 2012, China Life created a three-day sales myth of 100 million yuan with the help of universal insurance products through Taobao gathering cost-effective platform.

In 2013, China's first Internet insurance company, Zhongan Online Property Insurance, was approved by the former Insurance Regulatory Commission. Since then, China's Internet insurance has entered a stage of rapid development, and the premium of Internet insurance has almost reached a high level every year.

Since 2015, with the fundamental changes in Internet insurance drivers, some new problems and risk trends have risen, challenging the existing regulatory system and regulatory environment.

For example, the number of third-party network platforms is huge, new media and new technology participate in a higher degree, the insurance business fees, business processes, capital receipts and payments for in-depth control, through business cooperation with insurance companies, indirectly regulated by the insurance regulatory authorities, not directly or substantively regulated by the insurance regulatory authorities. As a result, the requirements of information disclosure, fund collection and payment, fee payment, etc. stipulated by insurance supervision are often difficult to be effectively implemented in business practice, resulting in greater compliance risks.

Some online platforms hide "tie-in sale", sell some insurance products by default checking, fail to specify the insurer or agent, fail to fully disclose the relevant important information, such as the terms of insurance products, which infringes the consumers'right to know, the right to choose and so on.

Small and medium sized insurance companies also have difficulties in the current Internet insurance environment.

From the current situation, premium is still concentrated on large companies. In the first half of 2018, the top eight insurance companies achieved a cumulative revenue of 23.577 billion yuan, accounting for 72.21 percent of the market, according to the CISA.

"Small and medium-sized companies can not survive the approval of Internet insurance business, in this environment, as long as a business on the loss. The top three insurers account for 62% of Internet insurance, and the last 39 small insurers each have less than $1 billion in premiums, a staggering number. A small and medium-sized insurance company executives sigh.

At the same time, the connotation and denotation of Internet insurance have changed a lot, from selling insurance as a channel or scene to enabling insurance technology. However, the Interim Measures still largely follow the earliest definition of Internet insurance, which is mainly measured and evaluated by selling insurance products through Internet channels. It needs to be revised in light of the new situation and environment to enhance the adaptability of supervision.

"China Business News" reporter was informed that recently the Banking and Insurance Regulatory Commission issued a "Notice on Continuing to Strengthen Internet Insurance Supervision Related Matters", which reiterated that since the original Insurance Regulatory Commission issued the "Interim Measures" in 2015, the Internet insurance business has continued to develop healthily and the service capacity has been continuously enhanced.

The Banking and Insurance Regulatory Commission has indicated that it is speeding up the revision of the Interim Measures and that the Interim Measures will remain in force until the new regulations are promulgated.

One insurance regulator, who declined to be named, said it was necessary to improve regulatory adaptability and maintain regulatory stability. To adopt a relatively open attitude towards Internet insurance supervision, we should not simply deny the conflict between the Internet insurance operation mode and the existing regulatory rules from the compliance level, but should look for the logical basis of the rules from a deeper level, take risk prevention as the ultimate goal, and seek the relationship between rules adaptation and encouragement of innovation. Balance.

"After the original regulatory rules have been broken, the new rules should be followed in a timely manner. For regulation, it is absolute truth to keep the risk bottom line." The insurance regulator said.

Cross border sales and insurance

The Banking and Insurance Regulatory Commission said in its document that it is actively promoting the work of Internet insurance supervision, requiring insurance institutions to effectively strengthen product innovation, risk management and control capabilities, customer service capacity building, and requiring insurance institutions to conscientiously implement the Internet insurance business operation area and information disclosure requirements. We should strengthen the protection of insurance consumers and ensure the compliance of Internet insurance business.

In the Interim Measures, the former Insurance Regulatory Commission allowed insurance agents and insurance brokers to sell insurance products via the Internet after they had the conditions to sell Internet insurance and completed the Internet insurance filing. Insurance companies can also build their own Internet channels and sell insurance through Internet platforms that complete Internet filing.

Especially in the Interim Measures, the former Insurance Regulatory Commission put forward: "Insurance companies can extend the Internet insurance business areas of the following types of insurance to provinces, autonomous regions and municipalities directly under the Central Government without establishing subsidiaries if they have the corresponding internal control and management capabilities and can meet the needs of customer service: (1) Personal Accident Injury Insurance Insurance, fixed-term life insurance and general life insurance; (2) family property insurance, liability insurance, credit insurance and guarantee insurance for individuals by the applicant or the insured; (3) property insurance business that can independently and completely realize the sale, underwriting and claims service through the Internet; (4) China Insurance Regulatory Commission Other types of insurance stipulated.

At present, there are more than 100 insurance companies on the market to carry out Internet insurance business, especially small and medium-sized insurance companies hope to achieve leap-forward development through the Internet channel, so small and medium-sized insurance companies hope that the CBRC will open up more types of insurance cross-regional sales.

A person familiar with the matter said that the Banking Regulatory Commission had solicited opinions on Internet insurance regulatory measures. However, at present, the Banking Regulatory Commission has not yet released a new draft of Internet insurance regulatory measures.

In fact, the reporter learned in the interview that small and medium-sized life insurance companies want to liberalize serious illness insurance, dividend insurance, annuity insurance, universal insurance and insurance products sold nationwide. And small and medium-sized property insurance companies want to liberalize heavy illness insurance (including millions of health insurance products such as medical care), car insurance and other products sold nationwide.

Some small insurers believe that more products such as heavy illness insurance (including millions of medical products), annuity insurance and automobile insurance can be sold across regions. Products such as heavy illness insurance and annuity insurance do not have many claims settlement services, and there are many third-party service companies, so insurance companies can give them to third-party service companies. Do; and the car insurance cross-district sales, before the public security insurance, Taikang online has been trying, but also did not cause changes in the nature of the market, and CICC car clothing has been established, can be more widely tried.

However, large insurance companies do not think so, especially serious illness insurance, car insurance and other products belong to heavy service products, the liberalization of small and medium-sized insurance companies cross-regional sales will affect insurance services, because small and medium-sized insurance companies can not keep up with the service capacity.

There is a view in the industry that the number of branches will affect the convenience of future health insurance claims to a certain extent. Generally, the value of a branch in a non-consumer location is limited to consumers unless the user will move to the region to live and work in the future.


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