In the construction of a financial power, we should find the right target positioning and provide high-quality financial services for economic and social development
Interview with Wang Tingke, Secretary of the Party Committee and Chairman of Chinese People's Insurance Group
The Central Financial Work Conference clearly stated that it is necessary to accelerate the construction of a financial power, and help the construction of a strong country and the great cause of national rejuvenation with high-quality financial development. The meeting required that the financial system should focus on five major articles: science and technology finance, green finance, inclusive finance, pension finance, and digital finance.
Recently, Wang Tingke, Secretary of the Party Committee and Chairman of the Chinese People's Insurance Group, was interviewed by the Financial Times reporter on how the insurance industry can serve Chinese modernization with high-quality development, how to help accelerate the construction of a strong financial country by giving full play to the functions of insurance as an economic shock absorber and social stabilizer, and doing a good job in five major articles on finance.
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Financial Times: The Central Financial Work Conference put forward the goal of "accelerating the construction of a financial power", and made it clear that high-quality financial development will help build a strong country and the great cause of national rejuvenation. China is the world's second largest insurance market, from a financial country to a financial power, what aspects does the insurance industry need to strengthen? As a financial enterprise under central management, how can Chinese Insurance play a leading role as a "head goose" and provide high-quality financial services for economic and social development?
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Wang Tingke: The Central Financial Work Conference clearly put forward the goal of building a financial power, and the insurance industry should find its own target positioning in the construction of a financial power and promote the fundamental transformation of the industry development from "big" to "strong". On the one hand, it is necessary to improve the level of insurance protection. At present, although China is the second largest insurance market in the world, the depth and density of insurance are still less than the global average, and there are still shortcomings in the key areas of serving the real economy and people's lives. The insurance industry should focus on commercial pension insurance, health insurance, science and technology insurance, green insurance, agricultural insurance, reinsurance, and catastrophe insurance, make up for the shortcomings of protection, improve the degree of protection, and provide strong insurance protection for the construction of a strong country. On the other hand, it is necessary to accelerate the promotion of high-quality development. The fundamental reason for the development of China's insurance industry in recent years is that the development concept and development mode have not really shifted to the direction of high-quality development. In the next step, the insurance industry should stick to its main responsibilities and main business, adhere to the surname of insurance, establish a correct performance outlook and long-term development concept, not judge heroes by development speed and market share, and truly implement the high-quality development requirements of quality first and efficiency first.
As a centrally managed financial enterprise, Chinese Insurance has conscientiously studied and implemented the spirit of the Central Financial Work Conference, developed seven major insurance policies around five major articles, and implemented "eight strategic services" in eight aspects, including serving the construction of a modern industrial system, rural revitalization, self-reliance and self-improvement in science and technology, improving people's livelihood and well-being, green development, safe development, regional development, and the "Belt and Road", grasping the "new coordinates" of PICC serving Chinese-style modernization, and better playing the leading role of "head geese".
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Financial Times: The Central Financial Work Conference clearly demanded that the financial system should focus on five major articles: science and technology finance, green finance, inclusive finance, pension finance and digital finance, and pointed out that "the insurance industry should play a role as an economic shock absorber and social stabilizer". How do you understand? How can the insurance industry accelerate this development goal?
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Wang Tingke: The Central Financial Work Conference has further clarified the functional positioning of the insurance industry, which is to better play the role of economic shock absorber and social stabilizer. The insurance industry should be based on the characteristics of its own risk management and protection industry, and actively participate in the five major articles of finance, which is also the main direction of Chinese Insurance's next development.
In terms of science and technology finance, Chinese Insurance focuses on the difficult and blocking points, establishes and improves the incentive and restraint mechanism for the urgent need for self-reliance and self-improvement of high-level science and technology, continues to expand service fields, improves service quality and efficiency, and provides full-chain and full-life cycle insurance services for technology-based enterprises; Strengthen cooperation between the government and banks and investment in insurance technology, and provide comprehensive financial services such as "insurance + financing" for science and technology enterprises.
In terms of green finance, we will focus on the "dual carbon" goal, implement the concept of green development, incorporate green development requirements into the operation and management process in accordance with the regulatory requirements of the "Guidelines for Green Finance in the Banking and Insurance Industry", and simultaneously promote green insurance and green investment, so as to provide strong support for carbon peak and carbon neutrality.
In terms of inclusive finance, we will focus on the weak links, give full play to the unique advantages of insurance to help the needy, and strive to improve the inclusiveness of insurance services. Strengthen insurance services for new citizens, and develop exclusive products around new citizens' entrepreneurship and employment, housing, health, pension and other scenarios; We will continue to optimize the "three rural" insurance products, improve the "three rural" insurance service methods, support the grain rice bowl, serve the development of rural industries, and promote farmers' income and prosperity; Give full play to the financing and credit enhancement advantages of insurance, and alleviate the problem of "difficult and expensive financing" for small, medium and micro enterprises and private enterprises.
In terms of pension finance, we focus on practical needs and make solid progress from both products and services. On the product side, we will actively develop a rich and diverse range of commercial pension insurance to better meet the increasingly diversified needs of pension finance; On the service side, we will implement the "Work Plan for the Group to Accelerate the Ecological Construction of Great Health and Elderly Care", and make up for the shortcomings in health, elderly care industry services and ecological construction as soon as possible.
In terms of digital finance, we will focus on efficiency and security, accelerate the Group's digital transformation, improve the convenience of insurance services, iteratively upgrade digital construction and development planning, do a good job in data governance and shared applications, and move from technology to support and empower business to a higher level of digital innovation and transformation of business models, and cultivate new momentum and new advantages for future development.
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Financial Times: The Central Financial Work Conference stressed the need to improve institutional positioning, support large state-owned financial institutions to become better and stronger, and be the main force in serving the real economy and maintaining the ballast stone of financial stability. Since the 18th National Congress of the Communist Party of China, how effective has Chinese been in serving the development of the real economy? What has been done to prevent and resolve financial risks?
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Wang Tingke: Since the 18th National Congress of the Communist Party of China, the Chinese People's Insurance has resolutely implemented the centralized and unified leadership of the Party Central Committee over financial work, adhered to the political and people's nature of financial work, adhered to bottom-line thinking, and ensured economic and social development and financial stability.
In terms of serving the real economy, Chinese Insurance resolutely integrates its own development into the overall situation of serving the real economy, focuses on the key areas and weak links of China's high-quality economic development, innovates insurance products and service models, continuously expands the depth and breadth of services to the real economy, and plays the role of the industry's "head goose" in science and technology insurance, agricultural insurance, green insurance and other aspects. Escorting major countries, Chinese People's Insurance exclusively underwrites China's first Mars exploration mission, China's first large-scale firefighting/water rescue amphibious aircraft AG600 "Kunlong" and "China Sky Eye" FAST radio telescope, chief underwriter of major engineering projects such as domestic large aircraft C919, and takes the lead in establishing China's integrated circuit co-insurance body. To help rural revitalization, promote the expansion of agricultural insurance, upgrade and increase products, launch a series of innovative insurance types such as "insurance + futures", meteorological index insurance, price income insurance, seed industry insurance, and high-quality farmland IDI insurance, and actively develop comprehensive insurance types such as "rural insurance". By the end of 2022, a total of 4 million mu of the three major staple crops, 2.3408 million mu of vegetables, 2523.2 million mu of fruits and fruit trees, and 47 million pigs had been insured, providing a total of 6965 trillion yuan of agricultural risk protection for 2.2022 million rural households. In 80, the "dual carbon" premium increased by nearly 578% year-on-year, and the environmental pollution liability insurance provided a total of 8.2023 billion yuan of risk protection. In the first three quarters of 2828, PICC Group assumed 93,2618 trillion yuan in insurance liability, a year-on-year increase of 18%; The amount of insurance claims paid was 1.<> billion yuan, a year-on-year increase of <>.<>%, which was significantly faster than the growth rate of premiums.
In terms of financial risk prevention and control, Chinese Insurance adheres to risk prevention and control as the eternal theme of financial work, firmly establishes bottom-line thinking and limit thinking, does a solid job in risk prevention and control, and continuously improves the initiative, comprehensiveness and systematization of risk prevention and control. Continuously improve the system and mechanism, Chinese has formulated and continuously upgraded the "Comprehensive Risk Management Action Plan", improved the risk control system in the fields of insurance and investment, strengthened the construction of grassroots risk compliance and internal control management system, improved the institutionalization, standardization and refinement of risk management, and strengthened the Group's penetrating management of institutions at all levels; Consolidate risk control responsibilities, promote the three lines of defense to assume their own responsibilities, focus on strengthening the responsibility of the first line of defense, vigorously establish a risk compliance culture, strengthen the construction of risk control and compliance teams, and improve the level and ability of risk control and compliance; Properly respond to key risks, strengthen the management and control of insurance risks, credit risks, and liquidity risks, continue to strengthen compliance management in key areas such as auto insurance and agricultural insurance, improve consumer protection mechanisms, and at the same time do a good job in the handling of key cases, prevent mass incidents and public opinion risks, minimize risk losses, and safeguard the rights and interests of state-owned capital; Enhance the initiative of risk control, pay more attention to the informatization and intelligent construction of the risk management system, establish the group's intelligent risk control platform, strengthen real-time monitoring and vertical penetration, and improve risk monitoring and early warning capabilities, so that risks can be known and controlled.
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Financial Times: The report to the 20th National Congress of the Communist Party of China (CPC) made a systematic and comprehensive strategic plan for Chinese-style modernization. For the insurance industry, which is undergoing deep transformation, how do you think China's modernization will help the insurance industry to grow in the long run? From the perspective of the practice of Chinese People's Insurance, how to comply with the requirements of the era of high-quality development and strive to solve the contradictions and problems in the process of industry reform and development?
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Wang Tingke: China's modernization will bring broad space and opportunities to the insurance industry. In the context of Chinese-style modernization, the demand for the insurance industry is increasing and increasing by the economy, society and the people. The state attaches great importance to the function of the insurance industry as an economic shock absorber and social stabilizer, and the insurance industry will usher in more and broader policy opportunities in the future, effectively promoting and promoting the development of the industry. China's digital economy, green economy, agricultural power, regional development and the "Belt and Road" and other new economic fields and new momentum, contain and give rise to broad insurance demand; In actively responding to the aging of the population, building a healthy China and a safe China, the insurance industry will assume greater responsibilities and missions. These are the opportunities and space for the future development of the insurance industry.
In line with the requirements of the times of high-quality development, at present and in the future, Chinese will focus on the "six more prominent", pragmatically promote the implementation of the "excellent strategy", effectively overcome the contradictions and problems in the development of the industry, grasp the opportunities and conditions for development, and accelerate high-quality development at a new starting point for development. The first is to give more prominence to political guidance, take the strengthening of political construction and political guidance as the main line running through the work of PICC Group, unremittingly cast the soul with Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely safeguard the authority of the Party Central Committee and centralized and unified leadership, continue to improve the "political three forces" of teams and leading cadres at all levels, and effectively transform political advantages into high-quality development efficiency. The second is to give more prominence to serving the national strategy, and do eight strategic services, including the construction of a modern industrial system, rural revitalization, self-reliance and self-improvement in science and technology, improvement of people's livelihood and well-being, green development, safe development, regional development, and the "Belt and Road", so as to better play the role of insurance economic shock absorber and social stabilizer, and provide high-quality financial services for economic and social development. The third is to give more prominence to the quality of development, adhere to the correct performance concept, establish a long-term business philosophy, improve the high-quality development index system, focus on optimizing the group's business structure, and continue to promote cost reduction and efficiency increase. Fourth, we will give more prominence to innovation-driven, accelerate the construction of a new insurance business model of "insurance + service + technology", continue to promote product innovation, focus on strengthening scientific and technological innovation, deepen institutional reform and innovation, and improve the level of comprehensive services. Fifth, we should give more prominence to comprehensive risk management, actively and forward-looking management and response to risks, improve the risk management system, consolidate risk prevention and control responsibilities, prevent and resolve key risks, and resolutely adhere to the bottom line of no systemic risks. Sixth, we should give more prominence to the comprehensive and strict governance of the party, improve the system of comprehensive and strict governance of the party, strengthen the party's leadership in improving corporate governance, enhance the political and organizational functions of the party organization, adhere to the standards of strong politics, ability and style, and forge a team of high-quality professional financial cadres who are loyal, clean and responsible.
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Financial Times: Inclusiveness is an intrinsic requirement of a modern socialist financial power. The Implementation Opinions on Promoting the High-quality Development of Inclusive Finance issued by the State Council have clarified the specific path to promote the high-quality development of inclusive finance. What experience can Chinese share in improving the quality of inclusive insurance services? How can we give full play to the role of insurance in protecting specific groups and small and micro enterprises, and promote inclusive economic growth and harmonious social development?
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Wang Tingke: As an economic compensation system that diversifies risks and digests losses, insurance has the characteristics of mutual assistance and mutual assistance, which is highly consistent with the intrinsic attributes of inclusive finance and can play a unique role in the practice of inclusive finance.
The first is to give full play to the advantages of precise protection of insurance to benefit the people in need. In terms of preventing people from falling back into poverty, the insurance mechanism can better help the government accurately identify people who are at risk of falling into poverty and return to poverty, give differentiated and accurate compensation, and help build a solid poverty alleviation safety net. At present, Chinese Insurance has issued more than 4,49 anti-poverty policies and paid 5.<> billion yuan in compensation.
The second is to give full play to the leverage amplification advantages of insurance to benefit farmers, rich peasants and strengthen farmers. Insurance can significantly increase the scope of financial investment through rate leverage, and once farmers encounter disaster risks, they can get dozens or even hundreds of times the compensation of financial premium subsidies, which can better support governments at all levels to establish a guarantee network for farmers to benefit farmers. In the past five years, Chinese Insurance has paid a total of 1348.6 billion yuan in agricultural insurance claims, benefiting 1 million rural households.
The third is to give full play to the risk-sharing advantages of insurance and benefit the health of the masses. The unique "everyone for one, one for all" relief mechanism of insurance can allocate the risks of minority groups to a wide range of people, reduce individual economic costs, and provide inclusive health and pension security services that meet the needs of the general public. For example, the serious illness insurance undertaken by Chinese Insurance will cover 2022 prefectures and cities in 28 provinces (autonomous regions and municipalities) in 240, serving 5 million people, paying compensation of 52.361 billion yuan, and helping urban and rural residents to see a doctor and reimburse about 5% overall.
Fourth, we should give full play to the financing and credit enhancement advantages of insurance to alleviate the financing problems of small, medium and micro enterprises. Micro, small and medium-sized enterprises (MSMEs) often have low credit levels and lack collateral assets, and are easily excluded from the financial service system, resulting in a mismatch between the supply and demand of inclusive financial services. Insurance can reasonably share bank credit risks through credit enhancement services, and effectively drive credit resources to be invested in small, medium and micro enterprises. In 2022, Chinese helped 5,29 small and medium-sized enterprises and individual industrial and commercial households obtain loans or financing of 183.75 billion yuan through business models such as small and micro loan insurance and government bank insurance.
Fifth, we should give full play to the advantages of insurance to ensure people's livelihood in inclusive disasters. In recent years, Chinese Insurance Co., Ltd. has launched low-cost livelihood insurance products such as "one-yuan people's livelihood insurance", agricultural housing insurance, and comprehensive public security insurance, which can establish a wide range of security networks with very little capital and effectively solve people's livelihood protection problems such as natural disasters and accidents. For example, during this year's Typhoon "Dusuri" flood season, the flood disaster caused a large number of houses to collapse, infrastructure damage and crop damage, Chinese People's Insurance immediately launched the emergency plan for catastrophe claims, in accordance with the principle of "special affairs, urgent matters", opened a green channel for insurance claims, simplified the claims process, improved the efficiency of claims, and achieved "due compensation, early compensation, and reasonable advance compensation", which has been unanimously praised by the government and the masses. (Reporter: Dai Mengxi)
Source: Financial Times client