How do you evaluate whether financial companies are doing well?
On July 12, the Ministry of Finance issued the Measures for the Performance Evaluation of Commercial Insurance Companies (hereinafter referred to as the “Measures”) to clarify the new performance evaluation index system for commercial insurance companies.
How to serve the "Sannong" and what to do to help the construction of ecological civilization... A series of new indicators are included in the evaluation system.
Last year, the Ministry of Finance also released the new Measures for the Performance Evaluation of Commercial Banks.
At present, China has established a relatively complete financial enterprise performance evaluation system covering banking, insurance and other fields.
Performance evaluation is like a "baton", guiding all kinds of financial enterprises to better serve the real economy while improving their management level and achieving healthy development.
"tailor-made" evaluation system
In Yunnan Dounan Flower Trading and Auction Center, flower farmers are often "heartbeat" due to fluctuations in flower prices.
Flower farmer Du Shaolun said that agricultural insurance is the "reassurance" for flower farmers.
Du Shaolun introduced that he has insured the flower transaction price insurance developed by Taiping Property Insurance Yunnan Branch and Yunnan Dounan Flower Industry Group. compensation.”
The insurance industry serves the real economy, so farmers are not afraid of crop price fluctuations.
In 2021 alone, agricultural insurance will provide more than 4.7 trillion yuan in risk protection for 180 million rural households in China.
Over the years, China's insurance industry has achieved rapid development and made remarkable achievements in forming a virtuous circle with the real economy and preventing and defusing risks.
In 2021, China's insurance penetration will reach 3.93%, the insurance density will reach 3,179 yuan per person, and the number of people covered by commercial health insurance will exceed 700 million.
In terms of risk prevention and control, as of the end of the first quarter of this year, the average comprehensive solvency adequacy ratio of the 180 insurance companies reviewed by the China Banking and Insurance Regulatory Commission was 224.2%.
By the end of last year, the total assets of the insurance industry reached 24.9 trillion yuan, and China has become the second largest insurance market in the world.
For a large number of insurance companies with huge volume, how to evaluate and assess?
Previously, various domestic financial enterprises, including insurance companies, mainly "ensemble" under the "baton" of the "financial enterprise performance evaluation system".
It is understood that the performance evaluation system of China's financial enterprises was established in 2009, and the relevant measures were revised in 2016. Through the establishment of an evaluation financial index system, each fiscal year will be evaluated in four aspects, including profitability, business growth, asset quality, and solvency. Banks, insurance, securities, and other financial enterprises conduct comprehensive evaluations. The evaluation results are an important basis for evaluating enterprise performance, determining the salary of the person in charge of the enterprise, and strengthening enterprise operation and management.
The performance evaluation work of centrally managed financial enterprises is organized and implemented by the Ministry of Finance, and the performance evaluation work of financial enterprises in various regions is organized and implemented by provincial financial departments.
The evaluated banking financial enterprises include state-owned banks and joint-stock commercial banks other than policy banks; insurance financial enterprises include various commercial insurance companies, etc.; securities financial enterprises include securities companies, futures companies, and fund management companies; Financial enterprises include various financial holding (group) companies, financing guarantee companies, etc.
With the deepening of the reform of the financial system and the expansion of the insurance market, the call for the establishment of a new performance evaluation system for commercial insurance companies is getting louder and louder.
Zheng Wei, director of the Department of Risk Management and Insurance, School of Economics, Peking University, said in an interview with this reporter that the previous performance evaluation system for financial enterprises involved four types of financial institutions, and its index system did not reflect the differentiated positioning characteristics of different types of financial enterprises. , "The insurance industry needs a 'tailor-made' performance evaluation system for insurance companies to guide insurance companies to better serve the real economy and prevent and control business risks."
In recent years, the Ministry of Finance has started the work of revising and improving the performance evaluation system of financial enterprises by industry, and gradually establishes a differentiated classification evaluation mechanism based on the positioning characteristics of different types of financial enterprises.
The revision and improvement of the performance evaluation system of commercial insurance companies is an important step in revising and improving the performance evaluation system of financial enterprises by industry after the introduction of the performance evaluation measures for commercial banks.
Guide insurance to serve the real economy
Where is the new baton "new"?
The relevant person in charge of the Ministry of Finance introduced that the reform of the performance evaluation index system focuses on guiding the transformation of the development model of commercial insurance companies, and the index system has been adjusted from the four indicators of profitability, business growth, asset quality, and solvency before the reform to services after the reform. National development goals and four evaluation dimensions of real economy, development quality, risk prevention and control, and operational benefits.
"These four dimensions evaluate the reasons for the development of insurance companies, whether the development quality is high, whether the risks are controllable, and whether the operating benefits are good or not, and comprehensively describe the comprehensive performance of insurance companies." Zheng Wei said.
From the perspective of specific indicators, the dimensions of serving national development goals and the evaluation of the real economy include indicators such as serving the society and people’s livelihood, “agriculture, rural areas and farmers”, ecological civilization construction, strategic emerging industries, and the use of insurance funds to invest in specific areas of the real economy.
The relevant person in charge of the Ministry of Finance introduced that this will promote commercial insurance companies to better serve major national development strategies such as common prosperity, rural revitalization, carbon neutralization, and technological innovation, and more effectively respond to macro policies.
At the same time, in the dimension of risk prevention and control, characteristic assessment indicators such as comprehensive solvency adequacy ratio, comprehensive risk rating, and comprehensive loss ratio are set.
The development quality evaluation dimension introduces indicators such as economic value-added rate, comprehensive expense profit rate, labor cost profit rate, per capita net profit, and per capita profit and tax paid, "to guide commercial insurance companies to speed up the transformation of development concepts and development methods, increase independent innovation, improve Input-output efficiency and value creation capability," said the person in charge.
Zheng Wei analyzed that the newly released evaluation index system is more in line with the actual situation of the industry and more comprehensively reflects the risk prevention and control level of insurance companies.
The specific evaluation indicators focus on conforming to the actual situation of the insurance industry, which is conducive to guiding insurance companies to accelerate the transformation of development concepts and development methods, and pay more attention to the prevention and control of business risks.
"In the previous evaluation system, only 2 of the 13 evaluation indicators reflected the characteristics of the insurance industry, while the new indicators set up social security insurance, agricultural insurance, green insurance, strategic Emerging industry insurance and other characteristic assessment indicators. In terms of risk prevention and control, in addition to the original comprehensive solvency adequacy ratio, a number of industry-specific indicators have been set up, which can more accurately reflect the performance of insurance companies in relevant dimensions.” Zheng Wei said.
The new evaluation system was welcomed by industry insiders.
The relevant person in charge of China Life Group introduced to this reporter that they have performed well in supporting regional coordinated development, building a healthy and green China, serving rural revitalization, and responding to population aging.
"The new evaluation system has strengthened the confidence of insurance companies to adhere to 'insurance as insurance' and return to the source of insurance, and will play a more effective guiding and motivating role in insurance companies' adherence to long-term investment and value investment, and serving the real economy." The responsible person People say.
Make the "baton" more powerful
"Reward the good and punish the bad", the baton can be more powerful.
It is understood that the new evaluation system incorporates the original agricultural insurance bonus points into the evaluation index system for serving the real economy, and increases the weight; reasonably sets the scope of the negative list, highlights the downgrade and deduction of corporate violations, and adds new risk events. Deductions from data distortion evaluations, penalties for violations, and disorderly establishment of subsidiaries.
At the same time, the application of evaluation results is linked to important matters such as executive compensation, total corporate wages, and leadership assessment, and further improves the mechanism of "matching compensation and performance, and paying equal attention to incentives and constraints".
Zheng Wei believes that the "Measures" will have a direct "baton" role for state-owned commercial insurance companies, and an indirect "wind vane" role for other commercial insurance companies.
"For state-owned insurance companies, the scope of application of the new evaluation system includes not only wholly state-owned and state-controlled commercial insurance companies, but also commercial insurance companies substantially managed by wholly state-owned and state-controlled financial companies, with a wide coverage." Zheng Wei said.
Other commercial insurance companies can refer to the new evaluation system.
Zheng Wei analyzed that, as an important main body of China's insurance market, the development concept and development method of state-owned commercial insurance companies will have a strong radiation effect on other commercial insurance companies. The guiding role of the new evaluation system on the development of the industry will gradually emerge in the next few years.
Zheng Wei believes that under the incentive and guidance of the new "baton", insurance companies should actively change their development concepts and development methods to achieve a benign interaction between enterprises and the real economy.
"Insurance enterprises should adhere to the 'insurance surname', give full play to the functions of risk protection and financial integration, and actively connect to serve the society and people's livelihood, rural revitalization, ecological civilization, strategic emerging industries and the real economy, and realize the insurance industry and the real economy in serving the overall development of the country. The long-term healthy development of commercial insurance companies." Zheng Wei said.
The relevant person in charge of China Life Group said that in the next step, the company will refine and improve the budget and performance evaluation system according to the assessment requirements of the "Measures", actively integrate into the overall situation of national reform and development, better serve the country's development goals and the real economy, and create a high-profile company. A new aspect of quality development.
The reform of the performance evaluation system of financial enterprises by industry will continue to advance.
The relevant person in charge of the Ministry of Finance introduced that in addition to commercial banks and commercial insurance companies, the research and improvement of the performance evaluation system for other commercial financial enterprises such as securities companies, financial asset management companies, and financial holding companies has been started, and will be issued and implemented separately after maturity. .
Wang Wenzheng