New progress has been made in the exclusive commercial endowment insurance for couriers and online car Hailing drivers.
Just now, the CBRC issued the notice on expanding the pilot scope of exclusive commercial endowment insurance. From March 1, the pilot area of exclusive commercial endowment insurance will be expanded to the whole country, and endowment insurance companies will be allowed to participate in the pilot.
According to the analysis of Kaiyuan Securities Research Report, there are currently a total of 10 professional pension insurance companies, involving a number of listed insurance companies. Ping An pension, Guoshou pension and Changjiang pension account for nearly 75%.
“6 +” effect business model can learn from
Since June last year, PICC Life Insurance, China Life Insurance Company Limited(601628) , Taiping Life Insurance, CPIC life insurance, Taikang Life Insurance, New China Life Insurance Company Ltd(601336) 6 family life insurance companies have carried out exclusive commercial endowment insurance pilot projects in Zhejiang Province (including Ningbo) and Chongqing. The pilot period is tentatively scheduled for one year. Since the pilot was launched, the overall operation has been stable and the social response has been good, laying a good foundation for the expansion of the pilot area to the whole country.
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) new business types such as couriers and online car Hailing drivers.
The first year’s earnings disclosed by six pilot life insurance companies recently show that:
During the accumulation period, the exclusive pension products of the six companies provide two different styles of accounts for customers to choose: steady and enterprising.
The annual settlement interest rate of prudent accounts in 2021 is between 4% and 6%, and that of aggressive accounts is between 5% and 6.1%.
For the products of six pilot companies, the minimum guaranteed interest rate for stable accounts is between 2% – 3%, the minimum guaranteed interest rate for aggressive accounts is between 0-1%, and the upper limit of high-end demonstration interest rate is 6%.
As a kind of products that guarantee no loss, the long-term positive return of exclusive commercial endowment insurance will make the account funds steadily increase in value, which can provide a way to steadily accumulate pensions for customers with low risk preference.
The cbcirc pointed out that 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 employment.
continuously innovative products
Exclusive commercial endowment insurance is not only more flexible and attractive, but also conducive to guiding residents’ savings to reinvestment.
First of all, the accumulation period of exclusive commercial endowment insurance adopts the income model of “guarantee + floating”, during which the funds can be converted between portfolios under the assumption of high, medium and low yields. Insurance companies are required to provide consumers with more than one portfolio with different risk preferences. The guaranteed interest rate of different portfolios can be different, but it shall not exceed the upper limit of the interest rate for the evaluation of the legal reserve of new life insurance products. This requires insurance institutions to improve the ability of portfolio management to meet the investment preferences of different people.
Secondly, the design of exclusive commercial endowment insurance is more humanized. If a consumer dies during the insurance contract period, the compensation amount shall not be lower than the account value during the accumulation period, and shall not be lower than the greater of the guaranteed balance and the account value minus the received amount during the annuity conversion, The cumulative compensation payment amount shall not be less than the account value at the time of conversion between the collection period and the accumulation period.
Third, in order to protect consumers’ right to know, insurance companies demonstrate the benefits of changes in account value and annuity. The benefit demonstration shall be demonstrated respectively according to the accumulation period and receiving period, and fully explain to consumers the reasonable investment income expectation of long-term funds and the uncertainty of benefit demonstration.
Industry insiders believe that the pilot scope of exclusive commercial endowment insurance should be expanded to the whole country to solve the contradiction between “high-risk status quo and low premium appeal”. At the same time, according to the “guaranteed + floating” income model, if insurance companies want to be more attractive in product design, they are bound to allocate assets to pension investment projects for a longer period of time, and improve the return of pension fund accumulation period as much as possible. This requires an appropriate increase in equity assets in the portfolio.
The notice emphasizes that all pilot companies should reasonably formulate business plans, continuously innovate products, explore and meet the diversified needs of Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , new business employees and flexible employees, and require all banking and insurance regulatory bureaus to interpret policies and strengthen business supervision.
