Our reporter Leng Cuihua
"We are basically not doing credit guarantee insurance business now, and the responsible team is mainly busy recovering." Talking about the recent credit insurance business, an insider of a medium-sized property insurance company told the "Securities Daily" reporter.
This is not a case. The reporter learned from two other property and casualty companies that at present, the focus of their work is no longer to carry out credit insurance business, but to carry out recovery work.
The shift of focus of work reflects the pain of the credit insurance business of many property and casualty insurance companies. This year, due to the superimposition of factors such as the epidemic situation and the complex and volatile economic situation, the financial insurance industry’s payment rate has exceeded 100%, and the industry’s underwriting has fallen into losses. In response to the problems and risks in the credit insurance business, the China Banking and Insurance Regulatory Commission has continued to publish relevant policies, and the local Banking and Insurance Regulatory Bureau has also issued reminders many times. The industry generally believes that standardizing the development of credit insurance business is an inevitable choice.
Credit guarantee business "Dare not do it"
"No one dared to do (financial credit insurance business) now." The relevant person in charge of a large property insurance company said in an interview with a "Securities Daily" reporter.
Credit guarantee insurance was one of the starting points for many property and casualty insurance companies to develop non-auto insurance business. Many companies have made great efforts to develop this business. The first professional credit guarantee insurance company with market operation was also launched in January 2016. Established. Nowadays, there are a lot of companies that are "stepping on the thunder" and are "healing", dealing with post-guarantee matters, with the focus on carrying out recovery work.
According to reports, the characteristic of financing credit insurance business is that the insurance company "compensates first and then recovers". When the borrower fails to repay the loan within the time limit stipulated in the loan contract, the insurance company first pays to the beneficiary such as the lender and then pays the borrower. Recovery. For insurance companies, the recovery work will consume a lot of manpower and material resources, and at the same time this year, they will also face many malicious complaints and the trouble of “agent surrender”.
Statistics show that since 2010, the scale of the insurance business of the property and casualty insurance industry has increased from more than 2 billion yuan to more than 80 billion yuan, becoming a leading product in the non-auto insurance business of many property insurance companies, especially in 2017 and 2018. This business experienced explosive growth, with growth of 106% and 70.1%, respectively. In 2019, the business started to slow down, and the premium income of the P&C insurance company's credit insurance business was 84.365 billion yuan, a year-on-year increase of 30.80%.
Behind the rapid development, risks also accumulate quickly, especially when the online loan platform is uneven and the economic situation is complex and changeable. In recent years, many property and casualty insurance companies have stepped on the thunder in the credit and insurance business. Among them, the companies that have a greater impact on the company's solvency and development include Zheshang Property and Casualty Insurance, Changan Liability Insurance, and China United Property and Casualty Insurance.
"According to my opinion, a credit insurance business can not be done, especially the business of online loan platforms." A person in charge of a large property insurance company said that in March last year, the company rejected the cooperation of an online loan platform for the third time. The invitation, "Otherwise, we may thunder earlier." He said.
Intensive release policy to move forward
So since then, will there be no credit guarantee business?
The answer is not simply negative. However, standardizing business development is an inevitable choice, and achieving risk control is a prerequisite. Recently, the China Banking and Insurance Regulatory Commission issued a series of documents to regulate the business. At the same time, the local banking and insurance regulatory bureaus continue to issue risk warnings to consumers, trying to start at both ends of the organization and consumers to make it move forward steadily.
In May, the China Banking and Insurance Regulatory Commission issued the "Regulations on the Supervision of Credit Insurance and Guarantee Insurance Business", which distinguishes between financing and non-financing credit insurance business, focusing on the supervision of high-risk financing credit insurance business, and improving the operating qualification, Regulatory requirements for underwriting limits, infrastructure, etc.
In early June, the China Banking and Insurance Regulatory Commission issued the “Regulatory Reminder Letter”, which again emphasized the risks of financing credit insurance business, requiring insurance companies to strictly implement the new regulations and prudently develop new businesses; consolidate their own foundation and prevent risk transmission by partners; properly handle risks and strict Compact executive responsibility.
In addition, the guidelines for pre-guarantee and post-guarantee operations of the credit guarantee business drafted by the China Banking and Insurance Regulatory Commission recently were solicited opinions in the industry, namely, "Guidelines for the Pre-Guarantee Management of Financing and Credit Guarantee Business" (hereinafter referred to as "Guide to Pre-Guarantee") and "Post-Guarantee Management of Financing and Credit Guarantee Business" Operational Guidelines" (hereinafter referred to as "Guarantee Guidelines") Among them, the "Pre-Guarantee Guidelines" emphasize that insurance companies should ensure consumers' right to know and make independent choices. When selling financing credit guarantee business, they should not bundle or tie up other insurance products against the will of the insured; the "Post-Guarantee Guidelines" require The post-guarantee monitoring measures of the insurance company shall be matched with the types of business operations and actual operating conditions, and shall be continuous with the risk control measures during underwriting to ensure the consistency, objectivity and accuracy of risk measurement. The above guidelines also intend to establish a risk early warning mechanism, overdue collection and recovery system.
While the Banking and Insurance Regulatory Commission issued documents continuously, the local banking and insurance regulatory bureaus also continued to publish consumer reminders. According to the statistics of the "Securities Daily" reporter, in the past 3 months, the Banking and Insurance Regulatory Bureau of at least 12 places have issued consumer tips on guaranteed insurance. The most recent is the "About Loan" issued by the Henan Banking and Insurance Regulatory Bureau on June 30. Tips for guaranteeing the consumption of insurance business. From these tips, on the one hand, the Banking and Insurance Regulatory Bureau reminds policyholders as borrowers to recognize their responsibilities for insuring credit guarantee insurance. On the other hand, they must understand that purchasing guaranteed insurance can help policyholders successfully apply for loans, but it cannot be exempted. The policyholder’s obligation to repay the loan. When the policyholder (borrower) cannot repay the loan, the insurance company will pay the beneficiary directly and may recover the loan from the borrower.
The relevant persons in charge of insurance companies interviewed by the "Securities Daily" said that they are now very cautious about the financing of the credit insurance business. In the future, insurance companies will greatly increase their risk control measures and the market size will be significantly reduced. But in the long run, this business will still exist, just to go slower and hope to go further.
(Securities Daily)