Draw the bottom line of the regulations and set the “threshold” for access
Welcome to the Internet Insurance Market
Our reporter Yuan Zihan
The China Banking and Insurance Regulatory Commission recently officially issued the "Measures for the Supervision of Internet Insurance Business" (hereinafter referred to as the "Measures") to regulate the basic business and supervision and management of the Internet insurance industry.
Experts believe that the introduction of the new Internet insurance regulations will help regulate the operation of the Internet insurance industry, safeguard the interests of consumers, and will promote the digital transformation and upgrading of the insurance industry.
The new regulations will be officially implemented on February 1, 2021.
Emphasize "institution license, personnel license"
In recent years, with the in-depth application of Internet and other technologies in the insurance industry, China's Internet insurance business has ushered in a stage of rapid development. The innovation of its channels and service models has injected new vitality into the insurance industry.
As the industry accelerates, some potential risks are exposed.
It is reported that there are three main risks in current Internet insurance: First, "eye-catching" products are hidden and misleading.
Some insurance institutions have launched so-called "eye-catching" products in one-sided pursuit of attention and sales volume. There are problems such as irregular promotional content, inconsistent or incomplete display of the format clauses on the webpage, and failure to clearly explain the exemption clauses, which are suspected of misleading Consumers; the second is the hidden “tying” on online platforms.
Some online platforms sell some insurance products on their ticketing and hotel reservation pages by default, without clearly specifying the underwriters or sales agents, and failing to fully disclose relevant important information such as insurance product terms, which violates consumers’ knowledge Rights and rights, such as the right to choose
The third is the hidden scam of "high interest" products.
Blurred boundaries of the Internet insurance business, mixed insurance sellers, and dazzling propaganda... These problems and hidden risks that once existed in the Internet insurance industry will all be clearly stipulated in the future.
Regarding the definition of Internet insurance, the "Measures" issued this time clarify that consumers can independently understand product information and complete insurance purchases through the Internet. The definition of Internet insurance business is uniformly defined as "relying on the Internet to conclude insurance contracts and provide insurance services. "Insurance business activities", set a standard bottom line for the industry, and set a "threshold" for business operations, strengthened institutional licensed operations and licensed marketing of practitioners, clarified the main responsibilities of insurance institutions, and regulated the entire process of Internet insurance after-sales Services to improve the consumer experience.
Industry insiders believe that the "Measures" emphasizes "institutions with licenses and personnel with licenses", including banking agencies and Internet companies in the scope of supervision, clarifying the restrictions or prohibitions of non-licensed institutions, and stricter supervision.
At the same time, the management requirements for licensed institutions and related channel types have been further refined to make the regulations more maneuverable.
Encourage the integration of insurance and new technologies
On the basis of standardizing operations, preventing risks, and drawing a clear bottom line, the "Measures" encourages the integration of insurance with new technologies such as the Internet, big data, and blockchain, supports the digital transformation of Internet insurance, and serves the real economy and society at a higher level People's livelihood.
The Measures encourage the development of insurance products that meet the economic characteristics of the Internet and serve the needs of diversified protection, so that insurance can be reasonably integrated with scenarios and technologies; encourage the expansion of data information sources, and use data mining, machine learning and other technologies to improve insurance business risk identification and disposal accuracy.
At the same time, the "Measures" supports insurance institutions to improve the level of transparency in sales and services, and can provide consumers with online evaluation functions on self-operated network platforms to provide consumers with reference; support insurance intermediaries to carry out risk management and health based on innovative applications of data Services such as management, case investigation, disaster prevention and loss reduction, etc.; promote the regulatory agencies to innovate regulatory concepts and methods on the basis of effectively preventing market risks, and establish and improve a new regulatory mechanism that adapts to the characteristics of Internet insurance.
In recent years, the Internet insurance business has developed rapidly, and the voice of Internet companies hoping to participate in the Internet insurance business is also increasing.
The General Office of the State Council once issued the "Guiding Opinions on Promoting the Standardized and Healthy Development of Platform Economy", which mentioned that "Internet platforms with sufficient strength and conditions are allowed to apply for the qualification of concurrent insurance agency."
Industry insiders said that the "Measures" promulgated this time are in line with this development idea, by adjusting the definition of "insurance agency", allowing Internet companies to directly apply for agency licenses.
This regulation provides new development opportunities for Internet companies, and at the same time further clarifies the regulatory boundaries to prevent Internet companies from operating without a license or operating at the edge.
Experts pointed out that the majority of Internet companies have an innate foundation of users and technology, while traditional insurance companies and intermediaries have rich practical experience and good reputation.
While allowing Internet companies to enter the insurance business, the "Measures" also implied the technological transformation of insurance companies and insurance intermediaries.
Through such mutual promotion and complementary advantages, it is possible to build a healthy competition between Internet companies and traditional insurance companies, and help the healthy and sustainable development of the Internet insurance industry.