At the press conference of the state information office today, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said that compared with the world average, there is still a gap in the depth and density of the insurance industry. In addition, the development of the third pillar of elderly care lags behind and needs to be accelerated. According to Guo Shuqing, the pilot of pension savings is about to start, and the commercial pension business for low – and middle-income people is also stepping up preparations.
the development of the third pillar needs to be accelerated
Guo Shuqing introduced at the press conference that the compensation of the insurance industry increased by 14.1% in 2021. About 11.6 billion yuan of compensation funds were provided for the reconstruction after rainstorms in Henan and Shanxi, and covid-19 vaccine insurance provided risk protection for more than 2.8 billion doses of vaccination. We will strongly support the resumption of steady growth of the national economy.
Although the development of commercial endowment insurance, medical insurance and health insurance is very fast, Guo Shuqing pointed out that compared with European and American countries, the development of insurance in China lags behind, and there is still a gap in the depth and density of insurance compared with the world average level, especially the level of developed countries.
Guo Shuqing said that compared with the basic pension insurance and supplementary pension insurance of enterprise annuity, the development of the third pillar lags behind the most, and there is an urgent need to speed up. Since last year, the China Banking and Insurance Regulatory Commission has taken some measures and is actively and steadily advancing, but we should also guard against risks. The CBRC is gradually developing and growing in accordance with the policy of “jogging in small steps and gradual progress in general” determined by the financial commission of the State Council.
In terms of the development of the third pillar of old-age insurance, Guo Shuqing revealed that the pilot area of exclusive commercial old-age insurance has been expanded to the whole country, the pilot of old-age financial products has been expanded to “ten places and ten institutions”, the pilot of old-age savings is about to start, and the commercial pension business for low-income and middle-income people is also stepping up preparations.
“From the perspective of pension system framework, the first pillar is to ensure the basic; the second pillar is generally owned by employed people with jobs, and the construction of the third pillar personal pension is mainly for the sake of low and middle-income people. Therefore, if the third pillar personal pension system wants to open the market, the most important thing is to achieve universal benefits and low cost.” Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology and core member of China pension finance 50 people forum, told the financial associated press.
Bai Tao, Secretary of the Party committee of China Life Insurance Company Limited(601628) insurance group, said that the insurance industry should give full play to the functions of economic “shock absorber” and social “stabilizer”. It should implement the basic requirements of insurance and return to the origin of security, participate in the construction of social security system at all levels, and build a strong social security network in serving the improvement of social security system.
Dawan District insurance industry needs high-quality development
The construction of Guangdong Hong Kong Macao Great Bay area is a major national strategy. In May 2020, the China Banking and Insurance Regulatory Commission issued the opinions on financial support for the construction of Guangdong, Hong Kong and Macao Bay area jointly with several departments, providing strong financial support for the construction of a first-class Bay area and a world-class urban agglomeration with vitality and international competitiveness.
Wang Sidong, chairman of China Taiping Insurance Group, introduced that the Great Bay area of Guangdong, Hong Kong and Macao has strong economic vitality and developed insurance market. There are more than 160 insurance companies in Hong Kong alone. The depth and density of insurance in Hong Kong are the second in the world. The premium in Hong Kong was HK $581.3 billion in 2020 and the premium income in Macao was mop 26.3 billion in 2020.
Wang Sidong said that chairman Guo Shuqing had conducted in-depth research in Dawan district and put forward requirements and hopes for the high-quality development of the insurance industry in Dawan district. “China Taiping is headquartered in Hong Kong and its headquarters, 9 major subsidiaries and 172 branches are located in Dawan district. In 2021, the premium of Dawan District accounted for 23% of the total premium of the group. Dawan district has become a strategic highland for the high-quality development of China Taiping.”
Wang Sidong revealed that during the 14th Five Year Plan period, China Taiping formulated a three-year action plan to serve the bay area. First, do a good job in the implementation of the policies of “Australian cars going north” and “Hong Kong cars going north”; Second, cooperate with the regulatory authorities to carry out cross-border “insurance links”; Third, participate in and promote the construction of cross-border insurance service centers. In addition, Taiping will also lay out elderly care communities in Dawan district and build China Taiping medical and Health Technology Industrial Park. Support Hong Kong to strengthen the function of the international risk management center, actively participate in the construction of the northern metropolitan area of Hong Kong, and establish Taiping Hong Kong insurance science and innovation fund.
