According to the news report of Shanghai Securities News, the China Banking and Insurance Regulatory Commission issued the measures for the management of life insurance sales behavior (Exposure Draft) to insurance companies to standardize the whole process of life insurance sales behavior of insurance salesmen of insurance companies and insurance intermediaries before, during and after sales. According to the report of Shanghai Securities News on November 26, 2021, the China Banking and Insurance Regulatory Commission has drawn up a draft for comments on the sales management measures. Compared with the last draft for comments, the management measures have been greatly relaxed. The main contents include:
First, it stipulates that “the proportion of commission in the total premium is limited by the additional commission rate when the products sold are priced”. However, it was proposed last year that “the payment proportion of the initial commission paid to the salesperson shall not be higher than 40% of the direct commission of the policy, and the payment period of the renewal Commission shall not be less than the lower of 10 years and the payment period of the policy”. The opinions proposed in the measures are greatly relaxed compared with those proposed last year, At present, the commission rate of insurance companies is basically not higher than the additional fee rate in pricing (the upper limit of the additional fee rate of annuity insurance, endowment insurance, fixed life insurance / lifelong life insurance / health insurance / accident insurance products is 16% / 18% / 35%). Therefore, the measures have no impact on the commission income of agents as a whole, and then have little impact on sales behavior. Second, it is required to “manage life insurance products and salespeople at different levels, and carry out differentiated authorization for the products that insurance salespeople can sell”. Among them, accident insurance, health insurance and ordinary life insurance are the first category, dividend type, universal type, annuity insurance, tax excellent health insurance and long-term health insurance with adjustable rate are the second category, and investment linked insurance and variable annuity insurance are the third category. The measures proposed last year divided the products into four levels, In addition, the measures give time for rectification. The new agents meet the requirements before December 31, 2022 and the stock agents meet the requirements on December 31, 2024. Therefore, the short-term impact on the team is relatively limited. In addition, at present, listed insurance companies have already carried out certain differentiated authorization according to the quality of agents, including the amount of exemption from physical examination, The hierarchical management of products and agents can sell products with different risk levels to the corresponding policyholders, which is expected to reduce the sales misleading of agents and surrender in the long run. Third, it is required that “the sales behavior of health and pension services and life insurance should be distinguished from each other, and no mandatory matching sales is allowed”. At present, many insurance companies improve the sales competitiveness of insurance products through health and pension services, but on the one hand, the definition of mandatory matching sales has not been determined. In addition, most medical and health management and pension communities are in the form of value-added services and have not paid corresponding fees. Fourth, “self insurance and mutual insurance shall not be allowed to participate in any form of performance assessment and business competition”. In fact, listed insurance companies have begun to regulate self insurance and mutual insurance in 2021.
Investment suggestion: the hierarchical management of products and agents is expected to cause team pressure, but it is significantly relaxed compared with the previous version. In the long run, standardize and guide industry sales, which is conducive to reducing surrender and other behaviors.
The supervision continues to guide the industry to speed up the liquidation, and the team is expected to reach the bottom in 2022. After the source is cleared, the situation of high supervision pressure is expected to be alleviated. Combined with the current valuation and performance, China Property Insurance (H) and China Life Insurance Company Limited(601628) (A / h), Ping An Insurance (Group) Company Of China Ltd(601318) (A / h), China Pacific Insurance (Group) Co.Ltd(601601) (A / h) are recommended.
Risk tip: the downward trend of the agent team exceeded expectations, and the sales of new orders did not meet expectations.
