“Come to Shenzhen to set up a new legal entity of insurance company, with a one-time reward of up to 50 million!” Recently, Shenzhen has updated the measures to support the development of financial enterprises. Once the policy is announced, it will “brush the screen” the circle of friends in the insurance industry. But this is not uncommon. In addition to Shenzhen, Tianjin, Guangzhou, Inner Mongolia Eerduosi Resources Co.Ltd(600295) and other places have also thrown olive branches to insurance institutions.
Industry insiders said that through government incentives and if the business can be carried out well at the same time, a win-win situation will be formed. However, it can not be ignored that after receiving rewards or subsidies, it is very important for insurance institutions to enhance their long-term endogenous profitability.
settlement policy rewards “volume” to 50 million
In addition to financial subsidies for policy business, the local government will also give financial subsidies for the establishment or settlement of insurance institutions or branches. At present, there have been many places to release the relevant high “gold content” policies.
The recently released “several measures of Shenzhen to support the development of financial enterprises” shows that for the headquarters of financial enterprises newly registered in Shenzhen, the maximum amount of reward for a single enterprise to settle down at one time is up to 50 million yuan. In addition to the new establishment, cost subsidies will also be given to relocated enterprises.
In fact, such real gold and silver rewards are not unique to Shenzhen. From the Great Bay area of Guangdong, Hong Kong and Macao, to the “Golden Triangle” of Inner Mongolia, from the eastern coastal areas to the inland of central and Western China… Financial institutions such as insurance institutions are becoming the existence of “looking forward to the stars” and “looking forward to the moon” everywhere.
In terms of developing the financial headquarters economy, the preferential support policies previously provided by Tianjin for insurance institutions are the same as those provided by Shenzhen. For those financial institutions with a capital of more than 100 million yuan, a certain subsidy will be given according to the policy on the development of financial institutions in Tianjin, including a certain subsidy for those with a capital of more than 100 million yuan; The maximum amount of subsidy is 50 million yuan.
Recently, Inner Mongolia Eerduosi Resources Co.Ltd(600295) City, located in the “Golden Triangle” of Inner Mongolia, is also “unwilling to be silent” Inner Mongolia Eerduosi Resources Co.Ltd(600295) Kangbashi District released the incentive measures for accelerating the high-quality development of modern financial service industry. According to the results, the legal person institutions of insurance institutions will be rewarded with up to 10 million yuan for settlement, and the insurance backup center and insurance brokerage company subordinate to the headquarters of insurance companies will be rewarded with 1 million yuan for settlement.
In terms of settlement layout and encouraging fine development, Kangbashi District of Inner Mongolia Eerduosi Resources Co.Ltd(600295) city is the same as Shenzhen city. Insurance companies will be rewarded for capital increase. In addition, insurance institutions in Kangbashi District of Inner Mongolia Eerduosi Resources Co.Ltd(600295) city will be rewarded with a maximum of 1 million yuan if their premium income increases compared with the previous year.
However, through the relevant policies of Tianjin, Guangzhou, Inner Mongolia Eerduosi Resources Co.Ltd(600295) and other places, it is found that in order to obtain rewards, the newly established or relocated insurance legal person institutions need to be based on the insurance institutions approved by the bancassurance department. Some localities have also made it clear that if the early relocation does not meet a certain occupancy period, the rewards, subsidies, subsidies and legal interest of the remaining committed years will be recovered by annual average allocation.
Ning Wei, vice president of the school of economics of Beijing University of technology and industry, said that from the current trend, we can see the “attitude” of local governments in striving for advantageous resources. Senior executives of an insurance intermediary company told the Beijing Business Daily that, compared with economically developed prefecture level cities or districts, the subsidy is greater. In the future, such policies with high “gold content” will certainly reappear, but they do not necessarily show a fierce trend.
recruitment agencies can optimize tax structure and meet employment needs
All localities sincerely invite national insurance legal person institutions, national insurance intermediaries and primary and secondary branches of insurance legal person institutions to settle down and support the development of insurance institutions. What do you value so much?
“On the one hand, taxes are very attractive to local finance, and on the other hand, they can solve the local employment demand.” Ning Wei said that if the business develops well, it will bring optimization effect to the local tax and greatly change the local tax structure.
Chen Wenzhi, the founder of most favored insurance, said bluntly: “the income tax of insurance companies is paid by the head office, and there are a lot of income tax of insurance companies that do well; the second is capital precipitation. The capital operation of insurance companies is in the headquarters, and the total assets of decent insurance companies are often tens of billions or even hundreds of billions.”
The landing of insurance institutions can bring development to the local insurance business and improve the degree of guarantee. Executives of an insurance intermediary company told the Beijing Business Daily that it is valuable to attract insurance institutions to enter through commercialization policies. For example, conducting business locally will help the local economy.
Through the implementation opinions of Shenzhen on accelerating the development of commercial endowment insurance at the end of 2021, it is found that it is proposed to attract insurance legal person institutions to settle in Shenzhen and encourage insurance companies (groups) to set up professional subsidiaries and divisions of endowment insurance in Shenzhen. Support the establishment of commercial pension insurance professional institutions in Shenzhen. It aims to improve the multi-level old-age security system in Shenzhen and further protect and improve people’s livelihood.
So, in the face of sweet options, what is the trend of insurance companies entering or moving in? In Chen Wenzhi’s view, whether insurance institutions can “settle down” in one place depends on the environment + policy. The environment includes the general environment such as talent, market and finance. This environment is basically the premise, followed by specific policies. This is why although some places also have policies, they may not be able to attract financial enterprises.
Ning Wei also said that a good business environment is very important. In addition, local education and medical resources may be more attractive than “rewards”. For the insurance institutions that move in, it will involve the education and medical needs of families from employees to executives. Therefore, in addition to financial incentives, the demand for “soft” services also needs to be met.
“For local insurance enterprises, under the influence of local government background or shareholder background, there will not be too many institutions to move out. In addition, it is unlikely that head insurance enterprises will move out. For insurance institutions that are currently at a loss, if they move out to areas with policy incentives, with the improvement of operation, such relocation is valuable. For insurance companies and local governments, it has achieved a win-win situation.” Senior executives of an insurance intermediary company analyzed the reporter of Beijing business daily.
insurance enterprises need to build “hematopoietic” ability and focus on business sustainability
In recent years, with the continuous increase in the attractiveness of local policies, certain results have also been achieved. “Shenzhen has really attracted some companies to move in or register, such as everyone property insurance, Huizhong mutual, merchants Renhe, etc.” Chen Wenzhi said.
Although the government policy is “awesome”, it is through the encouragement and subsidy of the “blood transfusion” insurance institution, but as an institution itself, it is necessary to maintain sustainability from the perspective of intensive business. Although some local insurance enterprises have received the “nectar” from the local government, through the performance of more than 10 local insurance enterprises including Taishan property insurance and Jixiang life insurance in recent years, it is found that the sustainability of profitability needs to be tested.
Insiders said that the company needs to have a sense of hardship and enhance its long-term endogenous profitability. Yang Xuan, founder of qusu capital and Baoguan, said that the local government can directly combine the local development characteristics with the insurance business, such as the development of industrial insurance types. If the government, insurance enterprises and other departments can “understand” the insurance business, they can play a very important role. If the local government and insurance companies have linkage at the business level and give some support to the underlying business, it may be more conducive to the sustainability of insurance institutions, forming a form of 1 + 1 greater than 2.
“As a part of enterprise development, from a business perspective, the relocation may involve changes in the positioning of the business model.”
Senior executives of an insurance intermediary company told the Beijing Business Daily that for the settled insurance enterprises, the matching degree of their business development is very important. There are human and other costs in the process of “moving”, and the concept of “double headquarters” may appear in the process of relocation. While the Department is adjusted, the personnel will also change. In addition, in the new environment, management expenses will also account for a certain proportion. Local regulatory rules should also be fully considered and observed.
