On June 2, Surging News learned from insiders that the P&C Insurance Department of the China Insurance Regulatory Commission recently issued a “Supervisory Reminder Letter” to various P&C insurance companies to emphasize financing again Risks related to the performance of credit insurance business require that property and casualty insurance companies strictly implement the new regulations and prudently develop new businesses; consolidate their own foundation and prevent risk transmission by partners; properly handle risks and strictly consolidate the responsibilities of senior management personnel.
On May 19, the China Banking and Insurance Regulatory Commission just issued the “Credit Insurance and Guarantee Insurance Business Supervision Measures” (hereinafter referred to as the “Measures”) to further strengthen financing credit insurance business Regulatory requirements require insurance companies to adhere to the operating principles of legal compliance, small amount diversification, and controllable risks to operate credit and insurance business.
The China Insurance Regulatory Commission stated in the “Supervisory Reminder” that since this year, due to the superimposition of various factors such as the new coronary pneumonia epidemic and the complex and volatile economic situation at home and abroad, insurance The company’s credit insurance and guarantee insurance business with financing nature (hereinafter collectively referred to as financing credit insurance business) has a comprehensive loss rate of over 100, the industry as a whole underwrites losses, a few property insurance companies have suffered serious losses, complaints and reports continue to rise, and individual property insurance companies have emerged. Public opinion risks, even the occurrence of mass incidents and the lack of solvency.
In order to effectively protect the legitimate rights and interests of insurance consumers, to further consolidate the results of the prevention and resolution of financing credit guarantee business risks since last year, we will not paralyze and slacken, and increase efforts to reduce inventory and control Increment, make overall consideration of business development, risk prevention and service of the real economy, and effectively play the insurance protection function of the financing credit insurance business. The China Banking and Insurance Regulatory Commission has put forward relevant regulatory requirements.
The “Regulatory Reminder” shows that, based on off-site supervisory monitoring data, from January to April 2020, some companies with weak independent risk control capabilities raised funds The performance of sex credit insurance business has grown substantially, with individual companies even increasing by more than 200%. Problems such as lack of risk recognition, neglect of risk management and control, and emphasis on scale and risk are prominent.
The Banking and Insurance Regulatory Commission requires in the “Supervisory Reminder” that companies should carefully study and implement the provisions of the “Measures”, strictly implement the requirements, and sort out the comparisons one by one. Rectification. During the rectification period, P&C insurance companies should pay close attention to improving all basic management systems, enhance their ability to resist risks, steadily reduce the risk exposure of their stock business, gradually reduce outstanding liability balances, and withdraw the relevant reserves in full in accordance with the requirements for reserve supervision. To further improve the understanding of the risks of financing credit insurance business and its own risk management and control, inUnder the premise of controllable risks, prudently launch new financing guarantee business to maintain market stability.
Regarding the risk points of financing credit guarantee business, the “Supervision Reminder” also clearly pointed out that some property and casualty insurance companies that operate financing credit guarantee business have independent risk control capabilities It is not strong, but it is a fluke to carry out business. The risk review and control of borrowers mainly rely on cooperative loan assistance agencies, and the core risk control links are entrusted to loan assistance agencies by agreement, and they are required to provide relevant countermeasures or undertakings.
The above cooperation model is likely to cause the following risks:
First, the cooperative lending institution will expand blindly The scale and embellishment of policyholder information have led to a decline in insurance companies’ underwriting quality and rising compensation rates.
Secondly, the cooperative lending institution’s sales are not standardized, and it is difficult for property and casualty companies to leave the relationship, resulting in reputation risk and complaint reporting risk.
Third, it is difficult for insurance companies to grasp the real information of borrowers, and there are risks of false and fraud in the underwriting business, resulting in many civil disputes in the subsequent claims link, seriously infringing the insured’s law rights and interests.
The China Banking and Insurance Regulatory Commission emphasizes that for this type of cooperation model, property and casualty insurance companies should increase the management of partners and reduce the scale of business as soon as possible. Effectively prevent business risks.
In addition, the “Supervisory Reminder Letter” also pointed out that Some P&C insurance companies did not conduct substantive risk audits of the performance obligations when underwriting, and take Various ways of delaying compensation, withdrawing or rejecting compensation. After the occurrence of public opinion risks and mass incidents, we will not actively respond to them and take no effective measures. Only when the situation is serious will compensation be paid, which will seriously damage the company and even the image of the industry.
The China Banking Regulatory Commission said that companies should take the precautions to properly dispose of stock business risks and do a good job of maintaining stability in risk management. There should be no passive response or perfunctory , Blame and blame. The executives of each company should enhance their sense of responsibility, fulfill their diligence obligations, earnestly perform their management responsibilities, and assume leadership responsibility for improper consequences of risk handling. All P&C insurance companies should actively cooperate with the local Banking and Insurance Regulatory Bureau to prevent and resolve related business risks and handle mass emergencies.
If there is any unreasonable reason for delaying compensation and refusing compensation, damaging the legitimate rights and interests of consumers, and triggering mass incidents, the regulatory department will, according to the degree of the plot, according to the law and regulations to the relevant executives and employees Responsible personnel carry out serious investigation and punishment.