China News Agency, Beijing, November 22 (Reporter Wang Enbo) At present, about 300 million rural people in China have transferred to cities and towns through employment and schooling, becoming new citizens.
How to help them resist risks under the complex situation where the economic operation is facing unexpected shocks?
Industry insiders who participated in the 2022 Financial Street Forum Annual Conference gave a proposal on this.
The importance of coping with economic and financial cyclical risks and improving the financial health of new citizens is highlighted.
Xiao Yuanqi, vice chairman of the China Banking and Insurance Regulatory Commission, mentioned that more than two-thirds of new citizens are flexible employees. Employment and income are greatly affected by factors such as the economic cycle, the nature of the work they do, and even the climate, and there may be greater volatility and flexibility. .
For example, when the economy is on the rise, new citizens find it easier to find jobs and earn more; when the economy is going down, it is difficult to find employment and their income will drop.
Another example is that in northern China, the construction industry cannot work for a long time in winter, and construction workers may be temporarily out of work, their income will drop, and they may even have no new income for the time being.
Financial health is a key indicator to measure the ability of individuals and households to meet short-term debt payments and consumption, as well as reserve long-term expenditures and resist long-term risks.
Only by ensuring the financial health of new citizens can their normal production and life be restored and maintained in a timely manner.
Xiao Yuanqi said that, therefore, it is best for financial products to be flexibly adjusted at different points in the fluctuation curve, to match the characteristics of new citizens’ greater employment and income flexibility, and to try to avoid possible interruptions in financial continuity and financial disruptions. Vulnerability to the detriment of financial health.
In addition, the financial sector should also help new citizens manage their financial health, avoid excessive debt and excessive leverage, and reject the temptation of high interest rates and the trap of high interest rates.
The characteristics of the new citizen group, such as wide distribution, poor job stability, and relatively low income level, also lead to their weak risk tolerance.
Especially compared with "old citizens", new citizens have more prominent risks in employment, housing, education, medical care, pensions and other fields, and group risk protection is insufficient.
"If the large group of new citizens cannot effectively deal with risks, income acquisition and wealth accumulation will be threatened." Sun Qixiang, honorary director of the China Insurance and Social Security Research Center of Peking University, believes that insurance companies should fully investigate the risk characteristics and insurance needs of the new citizen group. On the basis of social security, strive to provide marketable insurance products and services for this group.
Sun Qixiang suggested that in view of the characteristics of new citizens who have more short-term and temporary workers and lower income levels, insurance companies can develop life insurance and health insurance products with strong guarantees, easy insurance, and flexible payment; In the field of employment, especially for construction workers, courier riders, online car drivers and other specific occupational risks with prominent characteristics, we can develop and provide employer liability insurance, accident insurance, policy mortgage loans and other insurance products and services suitable for this group.
Ba Shusong, Chief China Economist of the Hong Kong Stock Exchange and Chief Economist of the China Banking Association, also mentioned that new citizens have relatively little knowledge of financial expertise and low participation in social security, which leads to the ability of the financial products they purchase to resist risks. weaker.
At the same time, the job mobility of new citizens and their higher acceptance of new consumption make it easier for them to pursue various financial marketing in the case of weak income stability. This requires the financial industry to provide more targeted and inclusive services. Financial Services.
Many financial institutions have already acted on this.
Yu Ze, vice president of the People's Insurance Company of China, revealed at the forum that for new urban citizens with different occupations, the company provides customized comprehensive occupational injury protection that is not linked to household registration, covering truck drivers, couriers, and flexible employees. , Graduated interns and other groups have provided risk protection of more than 50 billion yuan for more than 100,000 people.
It is worth mentioning that while the financial industry "takes care" of the new citizens, it will also benefit itself.
Ba Shusong pointed out that the needs of new citizens in consumption, medical care, education and other aspects can provide a huge potential market for the financial industry.
In the process of integrating into urbanization, this group will cultivate a huge middle class, which will further stimulate the vitality of the internal circulation and become a very large growth point.
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