In the period of transformation of the insurance industry, the supervision also dealt with the industry chaos with heavy fists and guided the industry to high-quality development. An important manifestation of the heavy fist attack is the substantial increase in the amount of punishment and the number of tickets for two consecutive years.
According to the analysis on regulatory penalties of insurance industry in 2021 (hereinafter referred to as "punishment analysis") recently released by PricewaterhouseCoopers, insurance institutions received 2182 tickets and were fined about 303 million yuan in 2021, a year-on-year increase of 28.39%. This is also the growth for two consecutive years after the double increase in the number and amount of fines in 2020.
From the content and trend of the ticket, we can see the development direction of supervision. In addition to the high incidence of "old problems" in industries such as the preparation of false materials, fictitious intermediary business arbitrage fees and false listing of fees, problems such as the use of insurance funds, the occupation of funds by related parties and the inadequate management of we media have also been severely punished. Industry insiders expect that the past extensive development model of using strict supervision to correct the deviation of the industry will continue this year, regardless of the amount of fines for administrative penalties or various normative documents released in succession.
303 million, what's the penalty?
Judging from the punishment of the insurance industry in recent three years, the number of fines and the total amount of fines have increased for two consecutive years in 2020 and 2021.
According to the statistics of PricewaterhouseCoopers, in 2020, the China Banking and Insurance Regulatory Commission and its dispatched offices issued 1705 tickets for insurance institutions, with a total amount of 236 million yuan. These two figures are 80% and 67% higher than the total amount of 947 tickets and 141 million yuan in 2019 according to media Statistics ( Bank Of China Limited(601988) Insurance News), respectively. In 2021, these two indicators rose again on the high growth base in 2020. The total amount of 2182 tickets and about 303 million yuan of tickets increased by 27.98% and 28.39% year-on-year.
Source: compiled by first finance according to media statistics and PwC data
"Although the epidemic has affected the insurance industry in the past two years, it can be seen that it has not shaken the determination of regulators to attack the chaos of the insurance industry. It is true that the insurance industry has experienced a stage of rapid development in the previous two years, but there are also various kinds of chaos frequently. In the final analysis, it is still caused by the extensive development mode." A senior person in the insurance industry told the first financial reporter.
At the same time, he also said that the increase in the number and amount of fines is also related to the more and more normative documents and special treatment work issued by the supervision in the past two years.
The change trend of quarterly penalties seems to confirm this. According to the punishment analysis data, the punishment in the first quarter of 2021 was the same as that in the same period of 2020. The number of fines in the second quarter remained the lowest level in the whole year in 2020 and 2021. The number of regulatory penalties in the third quarter of 2021 increased compared with that in 2020. Then, the number of fines in the fourth quarter of 2021 increased and the amount of fines decreased slightly.
According to PwC's analysis, this is because the supervision and punishment has been significantly strengthened with the requirements of the notice on deeply carrying out the special work on the treatment of chaos in the life insurance market and the notice on the work related to the normalization of the anti underworld and anti evil struggle in the banking and insurance industry in the second half of 2021.
What industry chaos is behind the fine of more than 300 million yuan in 2021?
Penalty analysis shows that in 2021, property insurance companies received the most annual fines, with a total fine of about 195 million yuan, accounting for 64%; At the same time, in terms of quantity, property insurance companies also received the largest number of orders in the year, reaching 1180, accounting for 54%.
From the perspective of quarterly trend, the first quarter continued to grow compared with the fourth quarter of 2020, the amount of regulatory penalties increased to the highest level of the whole year in the third quarter, and the amount of penalties decreased relatively in the second and fourth quarters. It shows that the crackdown of supervision on property insurance chaos was strengthened in the third quarter, and under the high-intensity crackdown, the penalty amount showed a good trend of steady decline.
The most frequent causes of punishment are the persistent diseases of "preparing false materials" and "fictitious intermediary business arbitrage fees", and the average amount of punishment for a single time is in the high range of 160000 ~ 220000 yuan / piece, which has become the key direction of "encirclement and suppression" of supervision.
At the same time, the punishment of "preparing false materials" also appears in the top five violations of life insurance and intermediaries, while the punishment of "falsely listing expenses" also appears in the top five violations of life insurance in addition to property insurance.
In fact, these two penalties are also persistent diseases of the industry for many years, which is closely related to the extensive development mode of the insurance industry in the past. "Under the extensive development mode, some insurance institutions can not avoid the development mode of" talking about heroes with premiums ". Under the attack of fierce industry competition and various compliance problems, some insurance institutions will take some false ways to achieve apparent compliance while increasing their scale, but there are actually many business risks behind it. Therefore, this is also true It has become the target of heavy blows by regulators for many years. But if this mode of development does not change, in fact, this chaos is difficult to disappear. Therefore, in fact, supervision is also using more stringent ways to increase the cost of violations by insurance institutions and employees. " The above senior people in the insurance industry said.
For example, in December 2021, Guangxi banking and Insurance Regulatory Bureau issued a fine of 2.55 million yuan to Guangxi Branch of Hua'an Property Insurance Co., Ltd., including a company fine of 2.25 million yuan and an individual fine of 300000 yuan. According to PwC statistics, this ticket has also become the highest fine received by insurance institutions in 2021, and the reason for the punishment is that the financial data are untrue. For another example, in 2021, Cao, an insurance agent, was issued a heavy ticket by Shanxi banking and insurance regulatory bureau to prohibit him from entering the industry for life because he was involved in a number of violations such as cheating and concealing the return of commission.
At the same time, from the perspective of the types of administrative penalties in 2021, the number of fines involved in heavy penalty measures such as revocation of license, suspension of acceptance of new business and revocation of executive qualification has further increased to varying degrees compared with 2020.
In addition to the above high-frequency punishment reasons, "failing to use the recorded insurance terms and premium rates as required" does not occur frequently. Once it occurs, it will become the object of severe punishment. In property and life insurance institutions, the average penalty amount caused by this matter is the highest. In addition, problems such as the use of insurance funds, the occupation of funds by related parties and the inadequate management of we media also appeared in the causes of punishment in 2021. In particular, the management of we media has also become the attack of regulators on new problems after the change of market environment.
strict supervision will continue
In fact, strict supervision is not only reflected in fines, but also reflected in the continuous release and improvement of regulatory policies.
PwC said that in 2021, government agencies continued to exercise strict supervision and issued a series of new regulations and regulatory policies, which are mainly summarized into eight levels: standardizing the development of insurance business, standardizing the management and application of insurance funds, strengthening corporate governance, preventing and controlling risks, protecting consumers' rights and interests, stipulating the management of insurance administrative system, regulatory subjects and guiding the development direction.
From the perspective of policies and regulations in 2021, while encouraging the development of the insurance industry, government agencies also pay close attention to the problems arising from the new situation, For example, new policies and regulations on regulating Internet business and protecting consumers' rights and interests, such as the measures for the supervision and evaluation of consumer rights and interests protection of banking and insurance institutions, the notice on further regulating the personal insurance business of insurance institutions on the Internet, etc.
At the same time, the chronic diseases of the insurance industry are still the focus of the supervision of the CBRC, such as the measures for the performance evaluation of directors and supervisors of banking and insurance institutions (for Trial Implementation), the notice on carrying out the "year of internal control and compliance management" in the banking and insurance industry, and the measures for the supervision of the behavior of major shareholders of banking and insurance institutions (for Trial Implementation) Internal control compliance and other related issues.
PwC believes that insurance institutions should analyze new regulations or regulatory requirements one by one; Find out the gap and design and implement improvement plans according to their own business and enterprise characteristics; And implement relevant requirements into organizational responsibilities, system processes, information systems and daily management, deeply find and timely adjust the weak links of the company's internal control and compliance, and strengthen consumer protection and consolidated management at the group level.
Looking forward to 2022, people in the industry generally believe that opportunities and challenges coexist. On the one hand, the people's awareness of insurance under the epidemic situation and the government's attention and support to the insurance industry provide opportunities for the development of the insurance industry; On the other hand, the pain of the deep transformation of life insurance, the continuous impact of the comprehensive reform of auto insurance in the property insurance industry and the high compensation of new energy vehicle business will bring great challenges to the industry. At the same time, consumer demand and industry environment are also undergoing great changes. In this critical period of industry transformation, it is expected that the situation of strict supervision will continue to ensure the transformation of the industry towards high-quality development.
\u3000\u3000 "As a special and complex financial product for risk management, insurance policy holders need a sense of trust in the industry to pay for the invisible future risks. In addition to emphasizing that the public should enhance their insurance awareness, it is more important for insurance practitioners to take better care of the industry and jointly establish the industry's credit. Therefore, whether it is the external force of supervision and punishment Forced or responding to the drastic changes in the industry environment, insurance institutions need to fundamentally change their development ideas, improve their compliance awareness, and prevent chaos from happening from top to bottom. " The above senior people in the insurance industry said.
(source: First Finance)
