A group of small and medium insurance companies stop selling related insurance types
Countdown to the implementation of new Internet insurance regulations
Should consumers rush to buy insurance?
Yangcheng Evening News reporter Cheng Xinghuan
Near the end of the year, two months ago, the China Banking Regulatory Commission issued the "Notice on Further Regulating Internet Life Insurance Business of Insurance Institutions" (hereinafter referred to as the "Notice"). It will be implemented on the 1st.
A batch of insurance products were announced to be removed from the shelves due to compliance requirements, and some small and medium-sized insurance companies announced that they would temporarily stop selling Internet insurance products. For a while, all kinds of news in the circle of friends were flying all over the sky, allowing consumers to hurry up and "get on the car."
Intended to regulate the Internet insurance market
The new regulations are intended to regulate the rapid development of Internet insurance.
On the one hand, this market has achieved amazing development; on the other hand, sales chaos in the Internet insurance market have also emerged one after another.
How to better maintain the healthy and stable development of the industry while taking into account the interests of consumers has become the primary purpose of the "Notice", and a transition period of about two months has been given.
The core content of the "Notice" is to limit the sales scope of Internet insurance products, namely "accident insurance, term life insurance, health life insurance (except nursing insurance) and annuity insurance (general over ten years)".
It also requires the operating company to have a certain threshold for entry.
These thresholds include: four consecutive quarters of comprehensive solvency adequacy ratio of 120%, core solvency not less than 75%; four consecutive quarters of comprehensive risk rating of B or above; four consecutive quarters of higher than the coverage ratio of liability reserves 100%; corporate governance assessment is C (qualified) and above.
For ordinary life insurance (except term life insurance) and ordinary annuity insurance products that insurance companies have sold through the Internet for more than 10 years, the requirements are more stringent: the comprehensive solvency adequacy ratio for four consecutive quarters exceeds 150%, and the core solvency is not low At 100%; the comprehensive solvency surplus for four consecutive quarters exceeded RMB 3 billion; the comprehensive risk rating for four consecutive quarters (or six quarters within two years) was above Category A; no major administrative penalties were received for the Internet insurance business operation in the previous year ; The insurance company's corporate governance assessment is B (good) and above.
This condition means that some small and medium insurance companies will be restricted beyond the threshold.
After the implementation of the new regulations, the operating threshold has increased
For insurance companies, compliance is the number one priority.
In the wave of product removals triggered by the new regulations, some insurance companies meet the sales requirements, but companies that do not comply with the product will continue to redesign and package their products, relaunch the products after complying with regulatory requirements, or adjust their business varieties, and some Insurers that cannot meet the regulatory requirements can only suspend online products or switch online products to offline sales channels.
However, consumers' rights and interests will not be affected by the new regulations for the protection enjoyed by the purchase of Internet insurance products.
For example, Huagui Life Insurance announced that it will adjust its Internet products to three categories: accident insurance, health insurance (except nursing care insurance), and term life insurance.
Another part announced the cessation of Internet insurance business. As of last weekend, according to incomplete statistics, these companies include a total of 17 small and medium-sized life insurance and property insurance companies, including Xintai Life, Three Gorges Life, Kunlun Health, Xiaokang Life, and Centennial Life.
"After the new regulations, not all insurance institutions can sell insurance online. There will be fewer insurance companies and platforms to choose from. For some regional and small insurance intermediaries, the operating threshold will increase after the new regulations, and the impact will be greater." Shang Mengmeng, CEO of Snail Insurance Broker, told Yangcheng Evening News reporter.
Consumer services will be more secure in the future
Xintai Life told the Yangcheng Evening News reporter that the business adjustment was due to the fact that all products sold by the company’s original Internet must be reported in accordance with the new regulations and products that meet the requirements of the new regulations. “The company comprehensively considers process optimization and technology research and development time cycles. According to relevant regulatory regulations, the Internet insurance business will be suspended from January 1, 2022. Consumers can continue to purchase our company’s related insurance products through other channels. For customers who have purchased our company’s whole life insurance products through the Internet channel, our company will strictly follow The insurance contract stipulates to perform insurance responsibilities and continue to provide insurance protection and services until the expiry of the insurance period.” It also stated that the company will focus on non-Internet channels in the future, consolidate offline business, and continue to provide consumers with better and more convenient insurance protection services.
After Internet insurance is adjusted according to the new regulations, what impact will it have on consumers?
Industry analysts believe that the price of some cost-effective critical illness insurance may be adjusted because the new regulations make it clear that price wars can no longer be arbitrarily engaged; the prices of accident insurance and medical insurance may remain unchanged; some savings insurance income may be affected, or Tend to be conservative.
The reporter noted that the new regulations have made more detailed and standardized requirements for the name, insurance type, sales organization, and service standards of Internet insurance.
Snail Insurance Broker CEO Shang Mengmeng said that for ordinary consumers, the impact of the new regulations is mainly in four aspects: changes in prices; some products are removed from the shelves; fewer insurance agencies are available; consumer services will be more secure.
"After the implementation of the new regulations, products such as universal insurance, participating insurance and continuous investment insurance cannot be purchased directly online. The four basic insurance types of accident insurance, medical insurance, critical illness insurance, and term life insurance, as well as those of more than ten years Whole life insurance and annuity insurance can also be purchased online, and they will be marked as "Internet exclusive"." On the other hand, the new regulations provide clear details on online services such as consulting, preservation, surrender, and claim settlement for insurance companies. With service and feedback time standards, consumers no longer have to worry about the slowness of online insurance claims settlement.