27 Provincial more than 70 million people insured "Huimin Insurance" Banking Insurance Regulatory Commission hints on adverse selection and loss risk

Recently, a reporter from the Securities Daily learned from the industry that the Bancassurance Regulatory Commission recently issued a notice on issuing a report on the development of commercial health insurance (hereinafter referred to as the "notice"). And in the "notice" to remind insurance companies operating "Hui Min Insurance" may be insured adverse selection and loss risk.

The regulatory document suggests that the risk is related to the large number of participants in Huimin Insurance and its great influence on insurance companies and consumers. According to the "Research report on the Development Model of Huimin Insurance" jointly released by the Health Insurance working Committee of the big data Society of China Health Information and Health Care on January 12 this year, as of the end of the third quarter of last year, 58 insurance institutions have participated in more than 100 Huimin insurance programs in 27 provinces, with a total number of participants exceeding 70 million.

From the point of view of insurance enterprises, the adverse selection and loss risk of Huimin Insurance is mainly related to the following reasons: first, the insured are generally older and underwrite sick persons, so the risk of compensation is higher; second, Huimin Insurance is in the stage of exploration and accumulation of experience, and the business model, product design, risk control leverage and service level need to be optimized. Third, the compensation rate is not only affected by the local basic medical insurance level, the policy business cycle and people's familiarity with the policy liability, but also by the policy requirements of the local government.

　　The total premiums of the four listed insurance companies grew by 0.25% last year. How many are happy and how many are sad?

At present, A-share listed insurance companies have released annual premium data for 2021 one after another. The original insurance premium income of four A-share listed insurance companies, China Life Insurance Company Limited (29.050, 0.17,0.59%), Ping An Insurance (51.230, 0.29,0.57%), PICC (4.690, 0.03, 0.64%) and New China Life Insurance (38.670, 0.26, 0.68%), totaled 2.12485 trillion yuan in 2021, down 0.25% from the same period last year.

Even head insurers are still under pressure, especially on the debt side. "in the past two years, the development speed and quality of the life insurance and health insurance industry have encountered many challenges. At present, companies are re-examining how to meet the needs of consumers through product innovation. " Swiss Reinsurance China life insurance and health insurance market business department head Zhang Yongqiang said.

According to Zhang Yongqiang, "during 2013-2018, the qualifications of insurance agents were liberalized, life insurance rates were marketized, and consumers' awareness of health and medical insurance consumption was awakened. the concentrated emergence of these dividends has led to a trend of doubling the growth of the industry, but the growth has declined rapidly in the past two years. The optimistic view is that it will be the norm for the industry to grow from a high growth to a moderate growth of 5 to 8 per cent a year in the future. But it is also possible to continue to face the reality of anaemic growth in the short term. All the companies are working hard, and the results are not obvious yet, but in the next 2-3 years, we will be more optimistic about the growth of the industry. "

　　The Bancassurance Regulatory Commission issued a document to standardize related transactions of bancassurance institutions.

In order to further strengthen the supervision of related party transactions, standardize the related party transactions of bank and insurance institutions, and prevent the risk of benefit transfer, the Bancassurance Regulatory Commission recently issued the measures for the Administration of related transactions of Bank and Insurance institutions (hereinafter referred to as the "measures").

In recent years, with the rapid development of China's banking and insurance industry, the exposure of risks caused by related transactions of bancassurance institutions continues to emerge. problems such as evading supervision and obtaining benefits by concealing related relations, designing complex transaction structures and using subsidiaries to provide funds illegally occur from time to time, and even lead to major risks. In order to make up for the shortcomings of the system, it is necessary to further revise and improve the relevant regulatory regulations on related party transactions.

It is reported that before the formulation of the "measures", the supervision of related transactions of banking institutions was formulated earlier in accordance with the "measures for the Management of related transactions between Commercial Banks and Insiders and shareholders" (hereinafter referred to as the "Banking measures") formulated in 2004. it needs to be revised and improved in accordance with the current market development and the actual supervision. "in order to regulate the supervision of related party transactions in the banking and insurance industry as a whole and improve the management level of institutional related party transactions, the CBIC has revised and promulgated the measures to meet the needs of the development of the industry." The relevant person in charge of the Banking and Insurance Regulatory Commission said.

The measures meet the needs of the development of the industry, pay attention to drawing lessons from the institutional experience at home and abroad, and cover all kinds of bancassurance institutions supervised by the CBIC. Specifically, there are seven chapters and 68 articles in the measures, including general principles, related parties, related transactions, internal management, reporting and disclosure, supervision and management, supplementary provisions, and so on. The content covers five major aspects: overall regulation, clear overall principles, adhere to the problem-oriented, clear management responsibilities, rich regulatory measures.

Taking enriching regulatory measures as an example, the measures clearly define measures to deal with violations committed by institutions and directors, supervisors, and senior managers, and banking and insurance institutions whose results of supervision and evaluation of corporate governance are grade E. they are not allowed to carry out related party transactions based on credit, capital use or funds. Measures such as industry notification and ordering institutions to be held accountable may be taken for those who violate the rules.