Four Persistences of China CIRC 1+4 Series Documents

On September 6th, the new life insurance regulations, which have attracted much attention from the market, were officially promulgated. Official website of China Insurance Regulatory Commission issued the Notice of China Insurance Regulatory Commission on Strengthening the Supervision of Life Insurance Products and the Notice of China Insurance Regulatory Commission on Further Improving the Actuarial System of Life Insurance, clearly stating that the safeguard function of insurance products is the first. Strengthen the supervision of new insurance products such as dividend insurance, universal insurance and investment-linked insurance.

How to strengthen supervision? Will it be across the board? Such a rumor before, cited "600 billion yuan" universal insurance delisting? The "Notice" clarifies that the policy will be implemented smoothly, gives clear expectations to the market, and guides some insurance companies to gradually adjust their business structures to avoid cash flow risks caused by "sudden braking". However, all insurance products that do not meet the requirements should be released on April 1 day, 2065438, 07:

5. All companies shall strictly implement the relevant provisions of the Notice of China Insurance Regulatory Commission on Standardizing Short-and Medium-Term Life Insurance Products (No.22 of China Insurance Regulatory Commission [2016]), and do a good job in evaluating the expected term of products in accordance with the principle that substance is more important than form and relevant certification standards.

(1) Since 2017 65438+101,investment-linked insurance products and variable annuity insurance products have been evaluated and reported according to the definition of short-term and medium-term products.

(2) Since June 2065438+June 2007 65438+10/October 65438 +0, insurance companies shall not design whole life insurance, annuity insurance and nursing insurance as short-term products.

(3) From 2017 65438+1kloc-0/day, for additional insurance products such as additional universal insurance and additional investment-linked insurance, the expected term of the products should be evaluated separately to determine whether they belong to short-term products.

6. The chairman of the board of directors and the chief actuary of an insurance company shall earnestly strengthen the capital control and business planning of short-term products, and reasonably determine the premium scale of short-term products according to factors such as the company's capital strength. The annual premium income of short-term products of an insurance company shall be controlled within the limits specified in this article.

(1) From 2016 65438+1kloc-0/day, the annual premium income of short-term products of insurance companies should be controlled within 2 times of the company's invested capital and net assets at the end of the latest quarter.

(2) An insurance company whose premium income of short-term products in 2015 years is higher than twice the invested capital and net assets of that year will be given a five-year transition period from 20 16 1. During the transition period, the annual premium income of short-term and medium-term products of insurance companies should be controlled within the benchmark amount.

Benchmark amount= the one with large invested capital and net assets at the end of the latest quarter ×2+(1-0.2t) × (short-term product premium income of 2015 years -20 15 years × 2), t = year -20 15 years.

(3) The annual premium income of short-and medium-term products sold by insurance companies with an estimated policy duration of more than 1 year and less than 3 years (excluding 3 years) should be controlled within 90% of the total limit of 20 16 years and 70% of the total limit of 20 17 years.

(4) From 2019 65438+1kloc-0/day, the annual scale premium income of short-term products of insurance companies shall not exceed 50% of the total scale premium income of that year; From June 5438+1 October1in 2020, the annual scale premium income of short-term products of insurance companies shall not exceed 40% of the total scale premium income of that year; From the date of 20211,the annual scale premium income of short-term products of insurance companies shall not exceed 30% of the total scale premium income of the year.

(V) For insurance companies whose short and medium-term products violate the quota requirements, China Banking and Insurance Regulatory Commission will take regulatory measures such as stopping some or all new business.

Eight, this notice from the date of promulgation. For insurance products that do not meet the requirements of this notice, all sales shall be stopped before April 20 17 1 day. If the relevant provisions previously issued by China CIRC are inconsistent with this notice, this notice shall prevail.

The person in charge of the relevant departments in China Banking and Insurance Regulatory Commission also interpreted the main contents of the document: adhere to the principle of "protecting surnames", improve the risk protection function of life insurance products, and meet the growing protection needs of consumers; Urge life insurance companies to constantly adjust and optimize their business structure, intensify structural reform on the supply side, further develop risk protection and long-term savings business, and keep the bottom line of no systematic risks;

1. Improve the risk protection level of life insurance products again.

In the market-oriented reform of life insurance rates, we have increased the minimum ratio of insurance amount to premium or account value from 105% to 120%, which has reached a high level in the world. This time, we further increased the proportion of death insurance coverage for major age groups of life insurance products from 65,438+0.20% to 65,438+0.60%, which exceeded the requirements of insurance regulators in the United States, Europe, Asia and other major countries and regions in the world.

2. Reduce the assessment interest rate of universal insurance liability reserve.

According to the downward trend of market interest rate, the upper limit of assessment interest rate of universal insurance liability reserve will be lowered by 0.5 percentage point to 3%, and life insurance products higher than the upper limit of assessment interest rate will be submitted to China Banking and Insurance Regulatory Commission for approval, so as to prevent the risk of spread loss and enhance the ability of insurance companies to fulfill their contractual obligations in the future. At the same time, in order to maintain the balance between products and encourage the development of risk protection business, the evaluation interest rate of ordinary life insurance products remains unchanged at 3.5%.

3. Put forward the requirements for the proportion of short-term and medium-term business.

We will continue to control the short-and medium-term business scale, and at the same time put forward clear requirements for the proportion of short-and medium-term business scale in the company's business structure. It is required that the proportion of short-term business should not exceed 50% from 20 19, and it will be further reduced to 40% and 30% in 2020 and 20021year, giving the market a clear expectation and guiding some insurance companies to gradually adjust their business structure to avoid

4. Further improve the short-and medium-term product supervision policies.

Incorporate investment-linked insurance products into the scope of short-and medium-term product specifications, require that the proportion of policy loans should not be higher than 80% of cash value or account value, and separately evaluate additional universal insurance and additional investment-linked insurance to prevent insurance companies from evading short-and medium-term product supervision policies through investment-linked insurance, policy loans and additional insurance.

5. Improve the regulatory requirements related to product design.

Insurance companies are required not to design whole life insurance, annuity insurance and nursing insurance into short-and medium-term products, and adhere to the risk protection and long-term savings attributes of the above products. Insurance companies are required to reasonably determine the charging standards for various products, and products with negative new business value will not be accepted for approval and filing as a result of profit test.

6. Strengthen the responsibility of the chief actuary.

Clarify the chief actuary's performance requirements and reporting obligations, further strengthen the chief actuary's responsibility, give severe punishment such as disqualification to the chief actuary who fails to perform his duties, and give full play to the key role of the chief actuary in the actuarial management of the company's products.

After the introduction of the new regulations, after a good start next year, the industry premium and investment scale may decline.

According to the new regulations, all unqualified insurance products will stop selling before April 20 17 1 day. Due to scale restrictions and the decline in settlement interest rates, the scale of short-and medium-term products will drop sharply next year.

The expected influence of the regulatory authorities is that the pricing interest rate and liability cost of life insurance products such as universal insurance will gradually decrease, the aggressive pricing and high settlement interest rate of products will be obviously curbed, the business structure will be gradually optimized, and the profitability, risk prevention and sustainable development ability of insurance companies will be further enhanced.

In the next step, China Banking and Insurance Regulatory Commission will also comprehensively use various means to strengthen the supervision of life insurance products such as universal insurance and strictly observe the risk bottom line. "In order to speed up the development of risk protection and long-term savings business, insurance companies are required to have a surname of' Bao' to prevent major shareholders from turning insurance companies into financing platforms."

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.