According to today’s CBRC website, on January 6, the CBRC held a “Symposium on promoting the high-quality development of the insurance industry”.
The meeting included three main points:
1. Summarize the achievements made in the development of the insurance industry: it has maintained the second largest insurance market in the world for four consecutive years.
2. There is still a big gap from the requirements of high-quality development: we should change the low-level duplication and strive to build an insurance supply system with reasonable structure, complete functions, comprehensive guarantee and orderly competition.
3. Opinions and suggestions on better serving the real economy: optimize the supply of insurance products, develop inclusive insurance serving the fields of “agriculture, rural areas and farmers”, enhance the endogenous driving force of compliance operation of insurance institutions, and enhance the ability of risk identification and disposal.
maintain the second largest insurance market in the world for four consecutive years
The meeting held that since 2018, the insurance industry has shifted from scale expansion to quality improvement and entered a high-quality development stage. By the end of November 2021, the insurance industry had 238 legal person institutions, with total assets of 24.6 trillion yuan, insurance amount of 10629.9 trillion yuan, and insurance funds of 20.4 trillion yuan for the real economy through various ways. It has maintained the second largest insurance market position in the world for four consecutive years. From January to November 2021, the compensation expenditure of the whole industry was 1.43 trillion yuan, which gave better play to the function of insurance protection.
The achievements in the development of the insurance industry are mainly made in four aspects:
First, adhere to the people-centered development concept, and the guarantee level has been significantly improved. actively participated in the construction of multi-level social security systems such as medical care and pension, and serious illness insurance covered 1.22 billion people. Participate in the development of enterprise annuity and launch pilot projects such as tax preferential health insurance and tax deferred pension insurance; Insurance funds give play to their long-term investment advantages and actively participate in the construction of the Yangtze River economic belt, the Great Bay area of Guangdong, Hong Kong and Macao, the coordinated development of Beijing, Tianjin and Hebei and other major national strategic projects. We will continue to expand the coverage, increase products and raise standards of agricultural insurance, and provide 4.29 trillion yuan of risk protection for agricultural production. Support epidemic prevention and control and resumption of work and production.
Second, continuously deepen reform and innovation and improve the system and mechanism. Formulate and improve the supervision system of personal insurance and Internet 567{casualty insurance. The pilot policy of exclusive commercial old-age insurance was implemented, and old-age insurance companies actively explored innovative products, services and management mechanisms. The comprehensive reform of automobile insurance has been steadily promoted, the reform in the field of agricultural insurance has been further promoted, the target effect of “reducing prices and increasing insurance” of automobile insurance has been obvious, and the market chaos has been standardized.
third, continue to expand opening to the outside world and gradually expand its global influence. by the end of November 2021, overseas insurance institutions had established 66 foreign-funded insurance institutions in China, and the total assets of foreign-funded insurance companies in China reached 2 trillion yuan.
fourth, firmly hold the safety bottom line and continuously enhance the risk resistance. the long-term mechanism of capital replenishment in the insurance industry was further improved, and the capital was enriched by increasing capital and shares, issuing subordinated bonds and capital replenishment bonds. Risk disposal was steadily promoted.
accelerate the pace of transformation and development
The meeting held that China’s insurance industry is still in the primary stage of development, the insurance depth and insurance density are not high, and there are still some problems in development concept, corporate governance and business mode, especially the weak customer-centered corporate culture, which is still far from the requirements of high-quality development. The whole industry should accelerate the pace of transformation and development, improve the quality and efficiency of serving the real economy, continue to deepen reform and innovation, and promote the high-quality development of the insurance industry to a new level.
First, continuously improve the political position. strengthen and improve Party building politically and organizationally, integrate Party leadership into all links of corporate governance, integrate self-development into the overall situation of the country, actively promote supply side structural reform, serve to build a new development pattern of mutual promotion of China’s international double cycle, consolidate the achievements in poverty alleviation, promote rural revitalization Make due contributions to improving the social security system.
second, adhere to the path of high-quality development. maintain strategic concentration, unswervingly return to the source of security, and actively participate in the top-level system design of national strategies such as healthy China and coping with population aging. We will resolutely curb vicious competition, change low-level duplication, and strive to build an insurance supply system with reasonable structure, complete functions, comprehensive protection and orderly competition. Actively promote differentiated development and misplaced competition, comply with the trend of digital transformation and improve the quality of development.
third, promote and improve the corporate governance mechanism. consolidate the main responsibility of corporate governance, strictly manage shareholders’ equity behavior, strengthen the construction of the board of directors, implement the function of the board of supervisors, give full play to the role of independent directors, and strengthen the performance management of senior executives. Protect shareholders, especially minority shareholders, the right to know, make decisions and supervise major matters of the company. Encourage the active exploration, establishment and improvement of a modern enterprise system with Chinese characteristics and in line with international rules.
Fourth, improve the ability to serve the society and the people’s livelihood. firmly establish the people-centered concept, optimize the supply of insurance products, and better meet the growing needs of the public for pension, health and other security. We will develop inclusive insurance in the areas of “agriculture, rural areas and farmers”, strengthen financial services for small and micro enterprises and vulnerable groups, and effectively promote common prosperity.
fifth, firmly hold the risk bottom line. comprehensively strengthen the construction of internal control, cultivate compliance culture and enhance the endogenous driving force of compliance operation of insurance institutions. Strengthen risk monitoring and early warning and stabilize operation and management. The company and shareholders should bear their own responsibilities for the risks. In the process of risk resolution, we should pay special attention to protecting the rights and interests of insurance consumers.
Sixth, strengthen and improve insurance supervision. further improve the system and make up for the shortcomings of supervision. Build an off-site monitoring and risk assessment system for insurance institutions to enhance their risk identification and disposal capabilities. Give play to the advantages of close supervision and front-line supervision of the local banking and Insurance Regulatory Bureau, strengthen up-down linkage, cooperation and sharing, form a joint force, and promote the healthy, stable and rapid development of the insurance industry.
(source: China Securities Journal)
