Original title: China Banking and Insurance Regulatory Commission rectified life danger and chaos, more than 20 companies were notified
◎Reporter Han Songhui○Editor Chen Yu
The chaos in the life insurance market was once again under the radar of supervision. A reporter from Shanghai Securities News learned yesterday that the Life Insurance Supervision Department of the China Banking and Insurance Regulatory Commission notified the implementation of the previously issued “Notice on Strengthening Standardized Management to Promote the Stable Development of Annual Business of Life Insurance Companies” (hereinafter referred to as the “Notice”). The insurance company and its branch offices in multiple locations shall report the problems found in the inspection by name and make specific arrangements for the next step of rectification.
In October last year, the China Banking and Insurance Regulatory Commission issued a “Notice”, requiring life insurance companies to abandon the one-sided pursuit of scale and performance, and exchange high costs for short-term business development. Analysts believe that from the timing of the issuance, the “Notice” points to a good start to the life insurance industry this year, guiding companies to rationally plan their development tasks throughout the year and balance the pace of business development.
Even with the guidance of regulatory documents ahead, some insurance companies still “come against the wind.” The report stated that the radical development model of the life insurance industry still exists. Some life insurance companies still continue their extensive business models, relying on incentive policies to achieve rapid business growth in the short term. The actual sales of PICC Health, Union Life, and China Post Life’s Jilin branch during the “good start” period were significantly higher than the reported business development plans; the premium income of ABC Life and Xintai Life’s Ningbo branch in the first quarter of 2021 increased by more than 50% year-on-year %, to complete more than 70% of the annual plan; the increased lifetime life insurance products sold by Beijing Life Insurance Tianjin Branch have risks such as low level of protection, short-term insurance, and financial management in disguise; Taikang Pension Yunnan Branch is in the long-term care insurance bidding activities Violation of industry self-discipline agreement.
Under the leadership of the “baton” that impacts the scale of business, market chaos is still frequent.China Life Insurance, Ping An Life, and CPIC Life Insurance have false charges, fictitious intermediary business and other violations of laws and regulations; Sino-British Life Hunan Branch, Sino-Italian Life Heilongjiang Branch, CITIC Prudential Hebei Branch have false publicity, exaggerated product guarantees, Hype on sales suspension; Sunshine Life Shanghai Branch confirmed premium income intertemporal, and Qingdao Branch’s group insurance business operations were not standardized; Ping An Life’s Shanghai Telemarketing Center had misleading sales, and quality inspections and return visits were ineffective in management.
Misleading sales have a ripple effect, and the risk of complaints and reports has risen again. The report shows that Ping An Life’s national complaints and reports are frequent, and the operational risks caused by misleading sales are prominent; the travel insurance of Caixin Life’s Hunan branch has infringements on the legitimate rights and interests of consumers; the staff of Centennial Life’s Chongqing branch operates customers’ mobile phones, Use WeChat public account to privately apply for and embezzle policy loans; staff of PICC Health Shanxi Branch handled policy loans illegally to defraud policyholders; Ping An Pension Guizhou Branch Critical Illness Insurance handlers defrauded claim payments; Guohua Life Insurance and Ping An Pension will conduct nationwide Internet business Statistics to the Shanghai branch resulted in distortion of business data; PICC Life, Taiping Life, and Taikang Life had incomplete risk investigation and response mechanisms, mismanagement of practitioners, and insufficient risk handling capabilities.
Regarding the above-mentioned violations and frequent issues, it was proposed in the circular to require relevant insurance companies to earnestly carry out rectification and accountability. On the one hand, all life insurance institutions must seriously reflect on the existing problems and deep-seated reasons, conduct a comprehensive review of the company’s business philosophy, product design, market behavior, customer service, internal control management, etc., and study and propose fundamental measures to solve problems and resolve risks. For the problems found in self-inspection and regulatory inspections, each company shall formulate practical and feasible rectification plans to further promote the implementation of rectification and reform.
On the other hand, all life insurance institutions must strengthen the responsibility of risk prevention and control entities, establish and improve long-term mechanisms covering various risks, make full use of big data and other information technologies, establish suspicious business screening models, innovate risk prevention and control methods, and strengthen risks Monitor and analyze, and take targeted measures against sudden, frequent, and frequent risk issues. At the same time, companies should increase the assessment of internal control compliance indicators, build a strong accountability mechanism, and create a compliance atmosphere that “does not dare to violate regulations, cannot violate regulations, and do not want to violate regulations”.
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