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 to the whole country, and allowing endowment insurance companies to participate in the pilot.
The CBRC said 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 CBRC bureaus to interpret policies and strengthen business supervision.
Allow pension insurance companies to participate in the pilot
The notice stipulates that from March 1, 2022, the pilot area of exclusive commercial old-age insurance will be expanded to the whole country, and old-age insurance companies are allowed to participate in the pilot on the basis of the original six pilot insurance companies. After the pilot scope is expanded, the relevant regulatory requirements shall be subject to the provisions of the notice of the general office of the China Banking and Insurance Regulatory Commission on carrying out the pilot of exclusive commercial endowment insurance (Yin Bao Jian Ban Fa [2021] No. 57).
The notice requires that all pilot companies should adhere to the long-term business philosophy, reasonably formulate business development plans and promote all work in an orderly manner. Under the premise of continuous product innovation, we will firmly hold the bottom line and enhance the function of providing for the aged. We should serve the overall situation of people’s livelihood and actively explore and meet the diversified needs of Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , employees of new formats and flexible employees.
All bancassurance bureaus should strengthen communication and coordination with relevant local departments and units, do a good job in policy interpretation, and create a good atmosphere for pilot development. We should continue to strengthen supervision, standardize market order, and resolutely investigate and deal with all kinds of acts that harm consumers’ rights and interests. The problems found in the pilot process shall be reported to the CBRC in time.
Will it be more advantageous to allow pension insurance companies to participate in the pilot?
“At present, pension insurance companies engaged in insurance business have three advantages in participating in exclusive commercial pension insurance.” Ping an endowment insurance stakeholders told reporters that the first is the advantages of carrying out individual tax deferred commercial endowment insurance.
Since 2018, the pilot of individual tax deferred commercial endowment insurance has been started, with the active participation of endowment insurance companies, which are the main participants of the insurance. After four years of practice, pension insurance companies have accumulated considerable experience in sales, products and system support. Both exclusive commercial endowment insurance and individual tax extension insurance belong to the category of endowment annuity insurance, which are highly similar.
The second is the advantage of opening up the two and three pillars of pension. The main pension insurance companies are head companies entrusted and invested by enterprise annuity and occupational annuity. In the future, with the support of the third pillar policy, we will integrate potential third pillar products such as annuity and exclusive commercial endowment insurance, coordinate and open up the second and third pillars of individual pension, and provide more perfect solutions for individual pension.
The third is the advantage of group insurance business. At present, the exclusive commercial endowment insurance that has been carried out focuses on unconventional employment groups, such as takeout and express delivery. In cooperation with the Internet platform, the endowment insurance company, as a traditional group endowment insurance company, has the advantages of product actuarial and marketing, which will accelerate the development of exclusive commercial endowment insurance.
The total premium income of the six pilot companies is 400 million yuan
In order to accelerate the development of commercial old-age insurance, better serve the construction of multi-level and multi pillar old-age insurance system, and actively meet the diversified old-age security needs of the people, six family life insurance companies have carried out a one-year pilot of exclusive commercial old-age insurance in Zhejiang Province (including Ningbo) and Chongqing since June 1, 2021. Insurance companies participating in the pilot include PICC Life Insurance, China Life Insurance Company Limited(601628) , Taiping Insurance, CPIC life insurance, Taikang Insurance and New China Life Insurance Company Ltd(601336) six large insurance enterprises.
Since the income model of exclusive commercial endowment insurance adopts “minimum guarantee + floating”, the product design reflects the core of “endowment security”. The receiving period is after the customer is 60 years old, and there can be a variety of receiving frequencies.
The data show that since the pilot of exclusive commercial endowment insurance was launched, the overall operation has been stable and the social response has been good. 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 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.
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.
“Exclusive commercial endowment insurance is one of the keys to promoting common prosperity. At present, in the first batch of pilot life insurance companies, unconventional employment groups are important insured groups. Exclusive commercial endowment insurance improves the old-age security level of relevant groups.”
Ping an endowment insurance related people said that in the future, on the one hand, they will actively apply for products, strive to become the first batch of endowment insurance companies to develop exclusive commercial endowment insurance products, polish products according to exclusive requirements, 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.
