Guofa [2024] No. 21
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, as well as all ministries and departments of the State Council and their directly affiliated institutions:
Since the 18th National Congress of the Communist Party of China, China's insurance industry has developed rapidly and played an important role in ensuring and improving people's livelihoods, disaster prevention and reduction, and serving the real economy. In order to thoroughly implement the spirit of the Central Financial Work Conference and further promote the high-quality development of the insurance industry, the following opinions are proposed.
1、 Overall requirements
Deeply grasp the main connotation of high-quality development in the insurance industry, firmly establish the concept of service priority, and help build a solid economic safety net, social security network, and disaster prevention and control network. must Adhere to the centralized and unified leadership of the Party Central Committee over financial work, firmly follow the path of developing finance with Chinese characteristics, and ensure that the insurance industry always maintains the correct development direction; must Adhere to the people's standpoint, firmly establish the development concept centered on the people, focus on the main business, protect the legitimate rights and interests of consumers, and better meet the growing needs of the people for insurance protection and wealth management; must Adhere to strict supervision, ensure that supervision is sharp and comprehensive, achieve full coverage and no exceptions, and firmly hold the bottom line of preventing systemic risks from occurring; must Persist in deepening reform, do a good job in the five major areas of science and technology finance, green finance, inclusive finance, pension finance, and digital finance, coordinate openness and security, and improve the quality and efficiency of the insurance industry's services to the real economy.
By 2029 A high-quality development framework for the insurance industry has been initially formed, with steadily expanding coverage, increasingly comprehensive protection, continuous improvement of services, stable and balanced asset allocation, sufficient solvency, and sound and effective governance and internal control. The insurance regulatory system has become more sound, with significantly improved regulatory capabilities and effectiveness. By 2035 A new pattern of insurance industry with a complete market system, diverse products and services, scientific and effective supervision, and strong international competitiveness has been basically formed.
2、 Strictly control the access to the insurance market
Strictly approve insurance institutions. Strictly approve the establishment of new insurance institutions in accordance with the law. Optimize the regional and hierarchical layout of institutions, and steadily and orderly promote reduction and quality improvement. Promote hierarchical management of business operations.
Strictly review the qualifications of management personnel. Establish a sound qualification review mechanism for directors, supervisors, and senior management personnel of insurance institutions. Strengthen the supervision of the performance of the chairman and general manager. Establish a negative information database for key personnel's job performance, increase accountability for dereliction of duty, and prevent "sick mobility".
Strictly review the qualifications of shareholders. Establish sound equity management rules for insurance companies. Strict scrutiny of shareholder qualifications, funding sources, and behavior. It is strictly prohibited for enterprises that engage in illegal cross industry operations, have excessively high leverage ratios, engage in serious dishonest behavior, and have a record of major violations to become major shareholders or actual controllers of insurance institutions. Establish a "blacklist" system for shareholders and actual controllers, and increase efforts to remove major illegal and irregular shareholders.
3、 Strict and continuous supervision by insurance institutions
Strengthen corporate governance supervision. Promote the organic integration of Party leadership and corporate governance. Establish a sound internal control compliance and risk management system. Strictly regulate related party transactions. Strict consolidated supervision. Improve the incentive and restraint mechanism for key personnel and strengthen long-term assessment.
Strengthen the supervision of asset liability linkage. Establish a sound mechanism for interest rate transmission and debt cost adjustment. Guide the optimization of asset allocation structure and enhance cross market and cross cycle investment management capabilities. Supervise and streamline the division of responsibilities between the principal and the trustee. Strengthen the supervision of the entire investment process. Use financial derivatives in accordance with laws and regulations. Steady and cautious promotion of global asset allocation.
Strengthen graded and classified supervision. Establish a sound regulatory rating system for insurance institutions and strengthen the application of rating results. Promote graded and classified management of insurance sales personnel. Strengthen the supervision of product cost differentials. Reasonably allocate regulatory resources, implement high-risk and high-intensity regulation, and low-risk and low-intensity regulation. Strictly prevent regulatory arbitrage and regulatory vacuum.
Strengthen the protection of consumer rights and interests in insurance. Deepen the construction of the credit system in the insurance industry. Strengthen product suitability supervision and enhance product supply-demand compatibility. Strengthen customer information security protection. Strengthen source governance and optimize underwriting and claims services. Strengthen publicity and popularization, and enhance the awareness of insurance in the whole society. Guide insurance institutions to effectively maintain industry reputation.
4、 Serious rectification of illegal and irregular insurance practices
Focus on key areas and weak links. Intensify inspection efforts, resolutely crack down on key events, individuals, and behaviors that seriously disrupt market order, seriously damage the legitimate rights and interests of insurance consumers, and cause adverse social impacts. Establish a system for recovering improper gains of shareholders and a mechanism for post recovery of risk liability in accordance with the law. Strictly implement measures such as revoking job qualifications, pursuing salary, and prohibiting entry into the industry for key personnel involved in self theft, internal and external collusion, and profit transmission; Those suspected of committing crimes shall be transferred to judicial authorities for handling in accordance with the law.
Intensify market regulation efforts. Strictly crack down on shareholders or actual controllers' illegal shareholding, non self owned fund contributions, illegal interference in company management activities, and illegal occupation of funds in accordance with the law. It is strictly prohibited to invest in industries and enterprises unrelated to the main insurance business in violation of regulations. Standardize sales behavior and seriously investigate and punish behaviors such as misleading sales and overcharging. Resolutely crack down on insurance fraud crimes, illegal agency cancellations, and other behaviors.
Optimize the mechanism for administrative penalties. Refine the punishment standards for various illegal behaviors. Strictly implement the system of full punishment, simultaneous punishment and confiscation, and "dual punishment". Adhere to the principle of equal punishment for the same case and the principle of proportionality in punishment, and improve the accuracy of punishment. Promote standardization of punishment work.
5、 Powerful, orderly, and effective prevention and resolution of risks in the insurance industry
Establish a system based on risk regulation. Improve the risk classification system for insurance assets. Strengthen countercyclical supervision. Optimize solvency and reserve supervision policies. Develop risk management procedures. Establish a sound mechanism for insurance protection funds to participate in risk management. Standardize the design of insurance products and the rights and obligations of stakeholders, and study and improve the policy redemption mechanism linked to risks.
Continuously prevent and resolve emerging and potential risks and hazards. Establish a sound risk warning system and strengthen the responsibility for warning response. Strengthen risk monitoring and analysis, track and assess risks in key areas. Strengthen duration and interest rate risk management. Establish a risk early correction hard constraint system.
Steady and cautious promotion of risk management. Expand the sources of risk disposal funds and support eligible enterprises to participate in the reform of insurance institutions. Establish a sound market exit mechanism. For insurance institutions with high risks and no ability to continue operating, their financial licenses will be confiscated and they will enter bankruptcy liquidation procedures in accordance with the law. Implement local party committees and governments' territorial responsibilities for risk disposal, strengthen the regulatory responsibilities of central financial management departments, and collaborate to promote risk disposal.
6、 Enhancing the level of insurance industry services to safeguard people's livelihoods
Enrich the forms of catastrophic insurance protection. Adhere to the principle of government promotion and market operation, explore the establishment of a multi-channel and multi-level catastrophic insurance protection mechanism. Expand the coverage of catastrophic insurance. Expand the pilot program of comprehensive catastrophic insurance. Develop and apply catastrophic risk models. Research and explore catastrophe bonds. Reasonably utilize reinsurance to diversify risks. Developing climate insurance. Establish a sound insurance emergency service mechanism, improve risk reduction services, and support disaster prevention, mitigation, and relief.
Actively developing the third pillar pension insurance. Vigorously develop commercial insurance annuities to meet the diverse pension security and cross period financial planning needs of the people. Encourage the development of new and exclusive products that are suitable for the personal pension system. Support pension insurance companies to carry out commercial pension business. Promote the development of exclusive commercial pension insurance. Enrich insurance products, services, and insurance fund support methods that are compatible with the silver economy. Promote the coordinated development of the insurance industry and the elderly care service industry in accordance with laws and regulations.
Improve the level of health insurance service protection. Expand the coverage of health insurance. Enrich the forms of commercial medical insurance products and promote rapid settlement of medical expenses. Include the application of new medical technologies, drugs, and devices in the scope of protection. Develop commercial long-term care insurance. Continuously providing major illness insurance services and guarantees. Promote the deep integration of commercial health insurance and health management. Encourage the provision of insurance products to groups such as the elderly and chronic disease patients. Trial regional insurance drug and equipment catalog. Explore the establishment of a third-party service agency "blacklist" system.
Establish a comprehensive and inclusive insurance system. Expand and improve the coverage and quality of basic insurance services. Expand insurance service areas, fields, and groups, and strive to provide the people with insurance services that are widely covered, fairly accessible, reasonably priced, and effectively guaranteed. Better meet the insurance needs of groups such as farmers and low-income urban residents. Optimize the supply of insurance protection for new business models and new residents. Vigorously promote accidental injury insurance. Encourage the development of exclusive universal insurance. Improve the evaluation indicators for universal insurance.
7、 Improving the quality and efficiency of insurance services to the real economy
Focus on major national strategies and key areas. Actively connect with the risk assurance and financing needs of major national strategies, key areas and weak links such as high-quality joint construction of the "the Belt and Road". Explore providing a comprehensive risk management and financial service plan to help facilitate the domestic and international dual circulation. Give full play to the role of the joint guarantee system and serve key areas supported by the country.
Serve technological innovation and modern industrial system construction. Establish a comprehensive insurance product and service system that covers the entire lifecycle of technology enterprises. Strengthen the top-level design of green insurance. Improve the development level of agricultural insurance and rural infrastructure insurance. Accelerate the development of maritime insurance and improve maritime security capabilities. Research and explore the risk diversification mechanism of international road transportation. Expand the coverage of export credit insurance and help cultivate new momentum in foreign trade.
Utilize the long-term investment advantages of insurance funds. Cultivate genuine patient capital and promote a virtuous cycle of funds, capital, and assets. Increase investment in strategic emerging industries, advanced manufacturing, new infrastructure and other fields to serve the development of new quality productivity. Guide insurance funds to provide support for technological innovation, venture capital, rural revitalization, and the development of green and low-carbon industries.
8、 Deepen the reform and opening up of the insurance industry
Continuously improve the insurance market system. Support large insurance institutions to become better and stronger. Guide small and medium-sized insurance companies to develop specialized and distinctive operations. Enhance the long-term fund management capability of insurance asset management companies. Promote the standardized and high-quality development of insurance intermediaries. Promote reinsurance companies to increase their efforts in product, service, and technological innovation. Give full play to the role of insurance industry organizations and infrastructure.
Continuously deepen reforms in key areas. Establish a sound pricing mechanism for products and strengthen the application of actuarial techniques. Promote product transformation and upgrading, and support the development of floating income insurance. Focus on commercial insurance for new energy vehicles and deepen the comprehensive reform of car insurance. Develop multi-level agricultural insurance, promote the expansion, enhancement, and upgrading of agricultural insurance coverage, and timely standardize claims settlement. Explore innovation in liability insurance and family property insurance. Utilize the family protection and wealth inheritance functions of life insurance. Accelerate the reform of the marketing system. Steadily carry out domestic and foreign currency policy business.
Continuously promote high-level opening-up to the outside world. Support high-quality overseas insurance institutions to establish legal entities and branches in China. Support qualified overseas institutions to invest in domestic insurance institutions. Encourage Chinese insurance institutions to steadily expand their overseas business and continuously improve their operational management and risk prevention capabilities. Deepen international insurance regulatory exchanges and cooperation, and actively participate in international insurance governance.
9、 Enhance the sustainable development capability of the insurance industry
Improve the accuracy of product pricing. Strengthen the governance and standardization of basic data in the insurance industry, and promote data sharing with related industries. Explore and promote information exchange between medical security information platforms and commercial health insurance information platforms. Develop statistical standards for commercial pension insurance. Establish a sound health insurance data indicator system. Develop a comprehensive experience occurrence rate table.
Improve the level of digitization. Accelerate digital transformation, increase resource investment, and improve operational management efficiency. Encourage the use of technologies such as artificial intelligence and big data to improve marketing services, risk management, and investment management. Strengthen network security protection and data security management, and enhance the level of emergency response and disaster recovery for sudden incidents. Protect the rights and interests of data assets in accordance with laws and regulations.
Enhance the endogenous driving force for high-quality development. Actively cultivate a Chinese characteristic insurance culture and shape a trustworthy, trustworthy, and warm image of the insurance industry. Establish correct management, performance, and risk perspectives, and accelerate the shift from pursuing speed and scale to focusing on value and efficiency. Strengthen the construction of professional talent team. Improve operational efficiency and enhance endogenous capital replenishment capability. Expand the channels for capital replenishment and improve the regulatory system for capital replenishment. Increase debt capital replenishment tools.
10、 Strengthen policy coordination to promote high-quality development of the insurance industry
Establish a sound mechanism for collaborative work between the central and local governments. Develop a list of collaborative matters between the central and local governments, and clarify the workflow. Establish a system for regular reporting, information sharing, and major issue consultations between financial regulatory authorities and local financial management departments. Continuously crack down on illegal insurance and other activities. Improve the quality and efficiency of regulatory linkage.
Strengthen macroeconomic policy coordination. Establish a sound financial support mechanism for agricultural insurance disaster risk diversification. Reasonably arrange the central and provincial finance to provide premium subsidies for major grain crops and local advantageous characteristic agricultural products. Strengthen the legal construction in the field of liability insurance. Establish a policy system for technology insurance and encourage innovation and exploration tailored to local conditions in various regions. Public institutions that comply with regulations may use financial funds to purchase and establish commercial health insurance related to supplementary medical insurance in accordance with institutional requirements. Support individual insurance agents to participate in social insurance and apply for residence permits in accordance with relevant policies for flexible employment personnel.
Deepen inter ministerial coordination and linkage. Promote the construction of the rule of law in the insurance industry. Intensify the joint crackdown on illegal and irregular behaviors. Strengthen the connection between execution and disciplinary measures. Establish a two-way reporting mechanism for major illegal and irregular clues, and increase efforts to transfer cases. We will promote the use of judicial enforcement and centralized jurisdiction in areas such as the removal of illegal and irregular shareholders and the risk management of problematic institutions.
Build a strong regulatory iron army with solid political, capability, and work style. Put political construction in a more prominent position and deepen the comprehensive strict governance of the Party. Eliminate the soil and conditions that give rise to corruption, resolutely punish corruption issues such as the interweaving of corruption and risk, and the linkage between capital and power, and create a clean and upright political ecology.
the State Council
September 8, 2024
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