Strict supervision is becoming the future development trend of the insurance industry, and the total amount of fines in the insurance industry increased rapidly in the first three quarters of this year. On October 10, according to incomplete statistics from a reporter from Beijing Business Daily, the total amount of fines issued by the regulatory authorities against the insurance industry in the first three quarters exceeded 8 million yuan, pointing to the chaos in the insurance industry.
From the perspective of the reasons for penalties, financial data fraud, commissions, misleading sales, false publicity, false claims, etc. are still quite common reasons for violations. In addition, the use of insurance funds and the cost of bancassurance channels have become important regulatory directions. The "top punishment" such as license revocation, business ban, and suspension of business for institutions or individuals has gradually become a regular regulatory method.
Industry experts said that the normalization of Dingge penalties reflects the zero-tolerance attitude of regulators towards violations, which can not only enhance the awareness of industry compliance and promote the development of industry norms, but also protect the rights and interests of consumers by punishing violations, which is conducive to maintaining market order.
A total fine of $2 million was imposed
The third quarter has ended, and the strict supervision of the insurance industry continues unabated. On October 10, according to incomplete statistics from a reporter from Beijing Business Daily, the total amount of fines issued by regulatory authorities for the insurance industry in the first three quarters exceeded 8 million yuan, an increase of 2% compared with 46 million yuan in the same period last year.
Property insurance companies have always been the hardest hit by regulatory penalties, with property insurance companies fined a total of 1 million yuan in the first three quarters, accounting for 37.55%, exceeding the total amount of fines imposed on insurance group companies, life insurance companies and insurance intermediaries.
From the perspective of the branch, the reasons for the frequent penalties of life insurance companies include untrue financial and business data, giving policyholders benefits other than those stipulated in the insurance contract, deceiving policyholders, and failing to strictly implement approved or filed insurance terms and insurance premiums. The reasons for violations by property insurance companies also mainly focus on false financial data, providing or compiling false information, and failing to use the recorded insurance clauses in accordance with regulations. These have long been the "hardest hit areas" of violations in the insurance industry.
"The amount of fines imposed on insurance companies continues to rise, reflecting the strengthening of regulatory oversight of the insurance industry and the increasing tightening of supervision." Jiang Han, a senior researcher at Pangu Think Tank, pointed out that this also shows that insurance companies have more violations of laws and regulations in the process of operation, and need to increase supervision to maintain market order and consumer rights and interests.
In view of the persistent problems of the industry such as defrauding policyholders, rebates, and compiling false materials, Fu Jian, director of Henan Zejian Law Firm, believes that this to a certain extent shows that practicing in violation of laws and regulations has become the default unspoken rule of insiders, and conducting business through violations of laws and regulations will seriously damage the healthy development of the industry. If such acts are not strictly punished, it will undoubtedly lead to a "broken window effect", and more and more enterprises and individuals will seek improper benefits through violations of laws and regulations.
Insurance funds and bancassurance channels have attracted attention
From the perspective of the reasons for violations, in addition to common violations such as financial data fraud, illegal business development, and misleading sales, in the first three quarters of this year, the use of insurance funds and bancassurance channel fees became important regulatory directions.
Specifically, in terms of the use of insurance funds, Zhonghong Life was ordered to make corrections and fined a total of 80,10 yuan because the insurance funds were invested in infrastructure projects and the independent supervisor did not meet the conditions; Fosun Prudential Life was fined for not operating independently of insurance funds, and Chen Guoping, the company's former general manager, was warned and fined <>,<> yuan.
In terms of bancassurance channel violations, many companies have also "eaten" fines. For example, Guohua Life Insurance Zibo Zhongzhi was ordered to make corrections and fined 14,<> yuan for falsely listing the salary of the bancassurance account manager.
Since the beginning of this year, the regulator has continued to target the bancassurance channel, and just last month, the regulator convened some insurance companies to exchange, mainly involving the issue of "reporting and bank integration" of the bancassurance channel, curbing the "small account" of bancassurance and reducing the commission of bancassurance channel fees.
Fu Jian pointed out that the supervision has repeatedly targeted the bancassurance channel, which is of great help to the standardized development of the industry. Bancassurance "small account" is a rebate issue between insurance companies and banks, which not only violates the principle of market competition, but also has a negative impact on consumers. The regulatory authorities' efforts to regulate the insurance industry will help regulate the market order of the insurance industry and protect the legitimate rights and interests of consumers.
Business closures, revocations, and prohibitions occur frequently
In fact, not only has the amount of fines surged by 32%, but from the perspective of individual institutions, the regulatory penalties against insurance institutions are also increasing. In the first three quarters of this year, 17 insurers or branches were issued million-dollar fines, including 9 life insurance companies and 8 property insurance companies. Such as Fosun Prudential Life, Changan Liability Insurance, Huahai Property & Casualty Insurance, etc. Among them, the latest fine disclosed by the regulator was a penalty for Zhonglu Property & Casualty Insurance, and the company was fined a total of 212.<> million yuan for individuals who actually performed their executive duties without approval, used channels to carry out disguised investments in high-risk areas, and falsely underwrote non-auto insurance business.
According to incomplete statistics from a reporter from Beijing Business Daily, in the first three quarters of this year, 9 people have received fines for a lifetime ban on the insurance industry, and another person has been ordered to be banned from engaging in valuation business for life.
In addition, the supervision has also taken a combination of punishment measures such as ordering the suspension of accepting new business, revoking business licenses, and revoking qualifications, increasing the cost of violations of laws and regulations. For example, the Shanghai branch of Yongcheng Property & Casualty Insurance was ordered to stop accepting new litigation property preservation liability insurance business for three months due to violations such as fictitious insurance intermediary business arbitrage fees and the preparation of false documents. Li, as the person directly responsible for the false expenses of the Guiyang branch of Shengyuanxiang Insurance Agency Co., Ltd., was revoked.
Wenxi Bai, chief economist of IPG China, said the normalization of Dingge penalties reflected the regulator's zero-tolerance attitude towards non-compliance. It also shows the seriousness and determination of the violation. This normalized top penalty helps to deter insurance companies, enhance their awareness of compliance operations, and promote the development of industry norms. At the same time, it can also protect the rights and interests of consumers and maintain market order by punishing violations.
Beijing Business Daily reporter Li Xiumei