The pilot period of one year has not ended, and the pilot of exclusive commercial endowment insurance will be extended to the whole country.
On February 21, the CBRC issued the notice on expanding the pilot scope of exclusive commercial endowment insurance (hereinafter referred to as the notice), expanding the pilot area of exclusive commercial endowment insurance from Zhejiang Province (including Ningbo) and Chongqing to the whole country. At the same time, on the basis of the first batch of six “head” life insurance companies, endowment insurance companies are allowed to participate in this pilot.
“According to the pilot policy started in June last year, the pilot period was supposed to end by the end of May this year, but now it has been extended to the whole country in advance. On the one hand, it reflects that the supervision is more satisfied with the pilot effect in the early stage, on the other hand, it also reflects the urgency of the development of the third pillar.” An executive of a life insurance company told the first financial reporter.
exclusive endowment insurance extended to
“Since the pilot of exclusive commercial endowment insurance was launched, the overall operation has been stable and the social response has been good.” The CBRC said.
Exclusive commercial endowment insurance is an integral part of the third pillar endowment insurance. In last year’s business plan, exclusive pension products were defined as individual pension annuity insurance products aged 60 and above for the purpose of pension security, with a period of no less than 10 years. In the pilot scheme, insurance companies participating in the pilot are required to actively explore the pension needs of service Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , employees of new formats and various flexible employees. Therefore, the market believes that this part of the population is an important “exclusive” Insured group in the pilot products.
On June 1 last year, this product was officially piloted in Zhejiang Province (including Ningbo) and Chongqing. Six companies including PICC Life Insurance, China Life Insurance Company Limited(601628) , Taiping Life Insurance, CPIC life insurance, Taikang Life Insurance and Xinhua Life Insurance participated in the first batch of pilot projects. The pilot period is tentatively scheduled for one year. Now more than eight months later, what are the pilot results?
According to the data of the CBRC, by the end of January 2022, six pilot companies had underwritten nearly 50000 insurance policies, with a total premium of 400 million yuan, including nearly 10000 employees of Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) such as couriers, online car Hailing drivers and new business formats.
The premium income of RMB 400 million in eight months is obviously better than the individual tax deferred pension insurance with a premium of RMB 300 million in the past two years from 2018 to 2020. However, the latter has passed the pilot period, but no follow-up connection policy has been issued.
The cbcirc said that the characteristics of exclusive commercial endowment insurance, such as simple insurance, flexible payment and stable income, have been gradually understood and accepted by consumers. Insurance companies have initially formed a business model in line with their own characteristics, especially in terms of service Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , employees of new formats and flexible employees.
Zhu Junsheng, research director of China Insurance and Pension Research Center, Wudaokou School of finance, Tsinghua University, believes that according to the pilot scheme, the exclusive commercial pension insurance highlights the long-term attribute of pension insurance products; Benefit the pension needs of groups including Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , employees of new business forms and various flexible employees, which helps to make up for the obvious deficiency of pension security of this group; Adopt the “guaranteed + floating” income model in the accumulation period to provide a diversified portfolio; Moreover, regulatory support has been reflected in the allocation proportion of equity assets and solvency supervision.
On this basis, the extension of the pilot is carried out. The notice stipulates that from March 1, 2022, the pilot area of exclusive commercial endowment insurance will be expanded to the whole country, and endowment insurance companies are allowed to participate in the pilot on the basis of the original six pilot insurance companies. The notice emphasizes that all pilot companies should reasonably formulate business plans, continuously innovate products, and explore ways to meet the diversified needs of Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , new business practitioners and flexible employees.
The China Banking and Insurance Regulatory Commission said that expanding the scope of the pilot can make more consumers have access to exclusive commercial pension insurance products with strong pension functions, and further guide and cultivate the concept of pension financial consumption; It is conducive to promoting pilot insurance companies to deeply explore the development experience of commercial pension insurance, promote and standardize the development of the third pillar pension insurance, and better meet the people’s multi-level pension security needs.
From the perspective of insurance companies participating in the pilot, the industry believes that it is also “significant good” for them to expand the pilot scope to the whole country. “As the regulatory authorities have many specific requirements on the payment method, the design of accumulation period and collection period, insurance liability, surrender rules, information disclosure and product management, the management cost of exclusive commercial endowment insurance products will be higher, which will increase the management cost of insurance enterprises. It needs a certain scale to dilute the cost and enhance the motivation of institutions to expand the market.” Zhu Junsheng said.
pension insurance companies join
In addition to expanding the pilot scope of exclusive commercial old-age insurance to the whole country, the notice also includes old-age insurance companies in the pilot scope.
Why did pension insurance companies join the pilot in the second batch? In an interview with the media last year, Zhu Junsheng analyzed that the first six companies participating in the pilot were head enterprises of life insurance, with complete branches and sound sales network. Professional pension insurance companies are good at undertaking relevant insurance and annuity businesses on the enterprise side and the government side, and their branches are relatively limited. However, it is not ruled out that the consumer end products will be opened to professional pension insurance companies. After all, they can do more professional operation on professional pension products.
In fact, the notice on regulating and promoting the development of pension insurance institutions issued by the CBRC at the end of last year clearly supports qualified pension insurance companies to participate in the pilot of exclusive commercial pension insurance.
At present, there are nine pension insurance companies and one pension management company in China, some of which have participated in the pilot of individual income tax deferred commercial pension insurance. Insiders said that professional pension insurance companies have several advantages in participating in exclusive commercial pension insurance: after four years of tax extension pilot products, pension insurance companies have accumulated considerable experience in sales, products and system support. The exclusive commercial endowment insurance and personal tax extension insurance belong to the category of endowment annuity insurance, which are highly similar; Secondly, the main pension insurance companies are the head companies of enterprise annuity, occupational annuity entrustment and investment. In the future, with the support of the third pillar policy, it will integrate potential third pillar products such as annuity and exclusive commercial endowment insurance, and coordinate and open up the second and third pillars of individual pensions. In this regard, endowment insurance companies have “natural advantages”; In addition, the focus of the exclusive commercial endowment insurance that has been carried out is on unconventional employment groups, such as takeout and express delivery personnel. Some endowment insurance companies undertake group insurance business in the early stage of operation. They have the advantages of product actuarial and marketing in cooperation with the Internet platform, which will accelerate the development of exclusive commercial endowment insurance.
How will pension insurance companies seize this opportunity in the future? The relevant person in charge of Ping an endowment insurance told the first financial reporter that the future promotion will start from two parts. On the one hand, actively apply for products and strive to become the first endowment insurance company to develop exclusive commercial endowment insurance products; According to the exclusive requirements, polish the products, focus on key customers such as unconventional employment groups, and create relevant terms scientifically and flexibly; On the other hand, the overall plan is to include the pilot of exclusive commercial endowment insurance into the scope of welcoming the implementation of the third pillar policy, allocate resources and actively prepare.
\u3000\u3000 “Exclusive commercial endowment insurance will become an important potential product form of the third pillar. Therefore, actively participating in the pilot will enable the company to win the initiative in the competition and customer service of the third pillar in the future. On the other hand, endowment insurance companies with insurance business actively participate in exclusive commercial endowment insurance, which is also the inevitable choice for endowment insurance companies to return to their origin.” The person in charge said.
How to further promote the healthy development of exclusive commercial endowment insurance? Zhu Junsheng suggested that the exclusive commercial endowment insurance should be connected with the upcoming third pillar new policy in the future, so as to obtain the support of tax preferential policies such as tax deferral and enhance the attraction of exclusive products; At the same time, by guiding insurance institutions to lengthen the evaluation period and optimizing the performance evaluation system, we can improve the return on investment of long-term pension funds.
