What are the risk warnings in the five notices on rational insurance issued by CBRC?

On April 26th, official website of the Insurance Regulatory Commission of the Bank of China (hereinafter referred to as China Banking and Insurance Regulatory Commission) published the article "Risk Tips for Five Precautions in Rational Insurance" in a prominent position on the front page.

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This paper emphasizes that in order to better protect the legitimate rights and interests of financial consumers, the Consumer Protection Bureau of China Banking Regulatory Commission issued the third risk warning in 2022: to remind financial consumers to master five precautions for rational insurance. They are:

I. Select a compliance institution with an insurance business license.

In particular, the article points out that mutual assistance activities carried out by non-insurance institutions in the name of "xx mutual assistance", "xx alliance" and "xx overall planning" are neither insurance nor mutual insurance, and should not be confused with commercial insurance. If there are publicity in the name of mutual insurance or insurance, such as mutual aid plan and motor vehicle "traffic safety overall planning", it will be misleading to the public. Institutions engaged in such business are not legally established insurance companies, and the business models of some business institutions are unsustainable. It is difficult to effectively guarantee the performance of relevant commitments and the safety of funds, which may bring losses to consumers and contain greater risks.

Indeed, in recent years, there have been more and more similar mutual aid organizations in society, and many consumers are not clear about the differences between them. Therefore, China Banking and Insurance Regulatory Commission reminds consumers to recognize the compliance of insurance institutions and the legitimacy of insurance practitioners: since it is unclear, find legal personnel and institutions to buy!

Two, understand the insurance liability, liability exemption and other important provisions, to prevent misleading sales risk.

It is suggested that consumers should read the insurance clauses carefully in the process of insurance, and clearly understand the important contract clauses such as insurance liability, liability exemption, premium payment, insurance compensation or payment, hesitation period, surrender loss, risk notification, etc., and earnestly safeguard their rights and interests.

In fact, in reality, many policyholders do not have clear insurance contract protection responsibilities. Here's an example: I want to buy medical insurance that can reimburse hospitalization expenses, but I can't get compensation after I buy life insurance, so insurance is deceptive. Some policyholders think that since they have bought insurance, they should be compensated as long as there is risk, whether it is accident or illness, whether it is hospitalization or disability, but they don't know that the insurance contract is guaranteed.

Third, actively cooperate with traceability, "double recording", return visits and other links to fulfill the obligation of truthfully telling.

In order to standardize the insurance sales behavior and effectively protect the legitimate rights and interests of consumers, the systems of traceability of sales behavior, double recording of sales links and return visit of new orders have been gradually established and popularized. These systems not only supervise insurance companies and salesmen, but also protect consumers. Consumers should actively cooperate with and make full use of these systems to protect themselves. At present, double recording has not spread to all regions, and Beijing only requires double recording of the insurance behavior of policyholders over 60 years old. Similarly, fulfilling the obligation of emergency notification is the premise for the insured to obtain their legitimate rights and interests, and it is also the protection of their legitimate rights and interests!

Four, a correct understanding of new life insurance products, don't be misled by "high income".

This item is also of great practical significance. Many policyholders cannot deeply understand the characteristics of insurance products with investment attributes such as dividend insurance, annuity insurance, universal insurance and investment-linked insurance. They only heard or saw the investment income, but ignored the long-term and stable investment attribute of insurance products. Many policyholders demand redemption after holding the policy for a short period of time. At this time, a certain cash value will often be lost. If they don't understand, there will be insurance disputes.

Consumers are advised not to compare new life insurance products with financial products such as bank deposits, government bonds and funds. Nor should we believe in false propaganda behaviors such as emphasizing "high income" without displaying unfavorable information and promising to guarantee income. In addition, life insurance products with a guarantee period of more than one year have a hesitation period. During the hesitation period, the insured can unconditionally terminate the insurance contract, and the insurance company will refund all the premiums except the policy fee.

Five, safeguard their legitimate rights and interests in accordance with the law.

At present, the insurance industry is a fully competitive market. It is not excluded that individual employees unilaterally pursue personal performance and mislead or even deceive consumers to sign insurance policies through illegal or even illegal means.

The article suggests that if salespeople are found to be misleading or even cheating in the sales process, or have other phenomena and behaviors that infringe on the legitimate rights and interests of consumers, they should complain and report to the regulatory authorities according to law.

With the development of economy and society, the prosperity of financial market and the enhancement of people's risk awareness, more and more consumers choose insurance products. I have to say, in order to protect the legitimate rights and interests of consumers of insurance products, China Banking and Insurance Regulatory Commission has also broken his heart. Although the above five tips have been repeatedly emphasized for many years, they are released again in the context of the recent continuous turmoil in the financial market, which shows China Banking and Insurance Regulatory Commission's good intentions!