Jin Ban Fa [2024] No. 121
Financial regulatory authorities, property insurance companies, reinsurance companies, insurance professional intermediaries, bancassurance companies, Shanghai Insurance Exchange, bancassurance media companies, insurance industry associations, insurance societies, actuarial associations, and insurance asset management associations:
With the approval of the State Administration for Financial Regulation, the Action Plan for Strengthening Supervision, Preventing Risks, Promoting Reform, and Promoting High Quality Development of the Property and Casualty Insurance Industry is now issued to you for careful implementation.
Office of the State Administration of Financial Supervision and Administration
December 5, 2024
Regarding Strong Regulation to Prevent Risks, Promote Reform, and Advance the Property and Casualty Insurance Industry
High Quality Development Action Plan
In order to implement the spirit of the Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reform and Promoting Chinese path to modernization, the Central Financial Work Conference and the Several Opinions of the State Council on Strengthening Supervision and Risk Prevention to Promote the High Quality Development of the Insurance Industry, this plan is hereby formulated on strengthening supervision and risk prevention to promote reform and promote the high-quality development of the property insurance industry (hereinafter referred to as the property insurance industry).
1、 Overall requirements
In the next five years, the property and casualty insurance industry will maintain steady growth, with gradually enhanced risk prevention capabilities, breadth and depth of protection, and comprehensive strength, forming a structurally reasonable, well governed, and orderly competitive property and casualty insurance market system.
2、 Comprehensive supervision and strict supervision
（1） Strengthen market access and exit supervision. Strengthen equity penetration supervision, use big data to enhance substantive review of shareholder qualifications, funding sources, and behavior, and increase efforts to report and remove non compliant shareholders. Strictly control the admission of key personnel such as the chairman and general manager, strictly implement the performance evaluation and supervision system for directors and executives, and strengthen the constraints on performance behavior. Establish a sound admission and exit mechanism for property and casualty insurance branches, and optimize the regional layout of property and casualty insurance institutions. Adhere to the essence of insurance protection, increase product supervision, implement intelligent product audits, and resolutely eliminate problematic products.
（2） Promote graded and classified supervision. Establish a sound regulatory rating evaluation and classification supervision system for property and casualty insurance, improve the application of relevant rules for rating evaluation results, and reflect the orientation of supporting excellence and limiting inferiority. Highlighting key graded supervision, strengthening continuous supervision of important property and casualty insurance companies in the industry, implementing high-intensity supervision of property and casualty insurance companies with significant risks and hidden dangers, and studying relevant procedures for upgrading supervision. Explore the implementation of classified supervision based on business scope, and research and introduce differentiated regulatory measures in areas such as corporate governance, institutional establishment, and business operations.
（3） Strictly rectify illegal and irregular behaviors. Strengthen the supervision of related party transactions and fund utilization, with a focus on rectifying issues such as transferring benefits to shareholders and their related parties, and avoiding hidden regulatory risks through multi-layered nested investments. Strengthen the supervision of data authenticity, enhance the management of non life insurance reserve funds, and consolidate the foundation of operational data. Improve the operational rules of key areas of property and casualty insurance, strengthen the supervision of underwriting and claims, and focus on rectifying prominent issues such as false underwriting, false claims, false cancellations, false expense reporting, false premium hanging, and infringement of the legitimate rights and interests of insurance consumers. Persist in strict investigation and punishment of both severe cases and institutional personnel, and promote the connection of execution. Strengthen the company's strict internal accountability for illegal and irregular issues.
（4） Establish a sound system and rules for prudent supervision. Improve the regulatory framework for key areas and weak links in property insurance. Establish a sound statistical system and indicator system in the field of property and casualty insurance, and build a cross departmental data sharing mechanism. Strengthen the implementation and effectiveness evaluation of property insurance regulatory regulations and systems.
3、 Effectively prevent and resolve risks
（5） Enhance capital replenishment capability. Continuously strengthen the supervision of the integration of reporting and operation, promote cost reduction and efficiency improvement in the industry, and enhance the ability of endogenous capital accumulation. Research and optimize shareholder qualifications and shareholding requirements to enhance the attractiveness of external capital supplementation. Support property and casualty insurance institutions to increase capital and issue capital replenishment tools to enhance their risk resistance capabilities.
（6） Establish a sound monitoring and early warning system. Strengthen the analysis of the macroeconomic situation and conduct dynamic analysis of the operating trends of property and casualty insurance. Intensify monitoring efforts, closely monitor risk signs, and strengthen supervision of new businesses and formats. Research and establish risk warning regulations for property and casualty insurance, strengthen risk warning for companies with governance deficiencies, sustained operating losses, asset liability mismatches, and near solvency issues. Strengthen the investigation of risks and hidden dangers, promote the establishment of a risk monitoring file list, and identify, warn, expose, and dispose of risks early.
（7） Improve risk prevention, resolution, and disposal mechanisms. Establish a sound early correction mechanism for property and casualty insurance risks with hard constraints, clarify the triggering situations and specific measures for early correction of risk institutions, orderly dispose of existing risks, and resolutely curb incremental risks. Establish a risk disposal responsibility mechanism with consistent rights and responsibilities and compatible incentives and constraints, consolidate the main responsibility of property and casualty insurance institutions for risk disposal, implement the local party committee and government's responsibility for risk disposal, and strengthen the regulatory responsibility of the central financial management department. Standardize the performance of duties, strengthen the supervision of performance, and hold accountable those who neglect their duties and responsibilities in the work of strong supervision and risk prevention in accordance with regulations, discipline, and law. Establish a sound mechanism for sharing disposal costs and promote the priority absorption of risk losses by shareholders of problematic institutions in accordance with the law.
（8） Enrich risk resolution and disposal methods. Urge problem organizations to initiate and implement recovery and disposal plans when necessary. Encourage the merger and reorganization of property and casualty insurance companies, support institutions with conditions to "migrate insurance", and use market-oriented and legal methods to clear risks. For property insurance institutions with high risks and lack of sustainable operation capabilities, market exit shall be carried out in accordance with the law, and relevant supporting policies shall be studied. Standardize the risk disposal process and carry out disposal work in an orderly and lawful manner. Strengthen the connection between administrative and judicial processes, better leverage the role of judicial procedures in resolving disputes and accelerating risk clearance.
4、 Deepen reform and promote opening up
（9） Ensure the proper positioning of institutional development. Deepen the organic integration of party building and corporate governance, and encourage the professionalization, refinement, and intensive development of institutions. Support large property and casualty insurance companies to become better and stronger, take the lead in serving the real economy and maintaining market order. Strengthen the functional positioning of policy oriented property and casualty insurance companies and implement national strategies. Encourage small and medium-sized property and casualty insurance companies to take a differentiated development path by combining their own resource endowments and operational advantages. Guide Internet property insurance companies, mutual property insurance organizations and self insurance companies to develop in a standardized manner. Implement the action of clearing up and standardizing the quality of insurance intermediaries, give full play to the positive role of insurance intermediaries, and enhance their professional capabilities.
（10） Accelerate business transformation and upgrading. Enrich new energy vehicle insurance products, optimize market-oriented pricing mechanisms, study and introduce policy measures to promote high-quality development of new energy vehicle insurance, and continuously deepen comprehensive reform of vehicle insurance. Guide the industry to increase investment in technology, strengthen technological empowerment, and accelerate the transformation towards online and digital intelligence. Consolidate the data foundation of the property and casualty insurance industry, deepen data application, and build data assets. Strengthen the research and application of insurance in new fields and tracks such as intelligent driving, low altitude economy, and quantum technology. Establish and improve the process and standards of property and casualty insurance services. Strengthen the protection of consumer rights and interests of property insurance companies, standardize marketing promotion and information disclosure, improve the quality and efficiency of claims services, and improve the mechanism for handling consumer complaints.
（11） Enhance risk management capabilities. Guide the property and casualty insurance industry to optimize pricing models, methods, and tools, strengthen product pricing management, and explore the establishment of innovative protection mechanisms for property and casualty insurance product services. Prevent data, model, and algorithm risks, strengthen network and data security management, and ensure customer information protection. Urge property insurance companies to improve their asset liability management system and prevent the risk of asset liability mismatch. Encourage property insurance companies to use technologies such as big data, artificial intelligence, the Internet of Things, and satellite remote sensing to provide risk reduction services. Support property insurance companies to participate in the establishment of service platforms or risk laboratories, strengthen basic research on safety and disaster prevention technologies, actively integrate into various industry standard constructions, and enhance competitiveness in the industry chain. Strengthen the training of professional talent teams, strengthen the actuarial team of property and casualty insurance, and cultivate a team of risk management engineers.
（12） Promote high-level opening-up to the outside world. Support eligible overseas financial institutions to invest in China's property and casualty insurance market, encourage eligible Chinese property and casualty insurance companies to optimize their overseas layout, and support high-quality development of foreign-funded property and casualty insurance companies in China. Safely expand the supply of reinsurance. Accelerate the construction of Shanghai International Reinsurance Center. Expand exchanges and cooperation in domestic and international reinsurance markets. Actively participate in international rule making and explore mutual recognition of regulatory rules. Explore the interconnectivity of related property and casualty insurance businesses to support the development of Hong Kong as an international financial center.
5、 Improve the quality and efficiency of serving the real economy
（13） Service the development of new quality productivity. Promote the establishment of a technology insurance policy system and improve supporting measures. Optimize the first batch insurance compensation policy mechanism for the first unit (set). Encourage the use of insurance mechanisms such as co insurance in key areas supported by the state to enhance insurance coverage capabilities. Enrich insurance supply in areas such as research and development, pilot testing, intellectual property, and network security. Optimize policies for high-quality development of green insurance, explore the establishment of an innovative service system for green insurance, and encourage the green and low-carbon operation of the property and casualty insurance industry. Promote the application of remanufactured parts in the insurance industry.
（14） Promote the integrated development of urban and rural areas. Expand the pilot programs for full cost insurance and income insurance, develop insurance products that meet the needs of new agricultural business entities, promote the expansion, enhancement, and upgrading of agricultural insurance, and focus on building a multi-level agricultural insurance system. Study the housing insurance system and explore the promotion of new types of family property insurance. Strengthen the supply of insurance for comprehensive transportation channels, support the "single policy" insurance for multimodal transport, encourage the development of road disaster insurance, and improve insurance protection in transportation and pipeline fields. Enrich insurance for new citizens and the silver haired economy. Accelerate the development of various types of employer, public, product, and occupational liability insurance to meet the protection needs of traditional and emerging fields, and support the improvement of social governance efficiency.
（15） Ensure the implementation of major national strategies. Proactively connect with major strategic risk protection needs such as regional coordinated development and main functional areas, and provide a comprehensive risk management service package. Accelerate the development of shipping insurance, improve the underwriting capacity and service level of shipping insurance. Support relevant regions to conduct research and exploration on risk diversification mechanisms for international road transportation. Encourage the industry to enhance its domestic trade credit insurance underwriting capabilities and help improve the level of integration between domestic and foreign trade. Promote the optimization of underwriting and claims conditions, leverage the role of export credit insurance, and strengthen risk protection for "going global" enterprises. Encourage the "the Belt and Road" reinsurance community to upgrade products and services, and improve the level of protection for special risks of Chinese overseas interests. Give full play to the advantages of the property and casualty insurance industry in protecting project industry risks, study and broaden the channels for fund utilization, explore and develop new models of insurance investment linkage, and provide a package of risk management and financial services for major projects and key industries. Strengthen insurance protection for the private economy.
（16） Support the construction of disaster prevention, reduction, and relief systems. Promote the construction of a multi-level catastrophic insurance protection mechanism covering the basic layer, expansion layer, and supplementary layer, and expand the pilot of comprehensive catastrophic insurance. Strengthen the risk transfer mechanism centered on reinsurance and risk securitization, and support eligible insurance institutions to issue insurance linked securities such as catastrophe bonds in Hong Kong. Research and improve catastrophic risk models for typhoons, floods, earthquakes, and other disasters. Explore climate risk quantification standards, actively develop climate insurance, and improve the level of natural disaster insurance protection. Establish a sound insurance emergency service mechanism, enhance the integrated service capabilities of pre disaster prevention and reduction, mid-term emergency relief, and timely compensation after the event. Improve the standards for disaster and accident claims services, strengthen communication and cooperation with rescue and automobile repair industries, optimize accident investigation, post disaster compensation, and pre compensation work. Explore the linkage between police and security, promote rapid handling mechanisms such as "collision and quick compensation" for traffic accidents, and establish a mechanism for mutual recognition of vehicle losses during major disasters.
6、 Create a favorable development environment
（17） Intensify policy support. Closely communicate and coordinate with relevant departments and local party committees and governments, and strive for policy support for property insurance business related to national economy, people's livelihood, and major national strategies. Promote the construction of the rule of law in the field of property and casualty insurance, and strengthen the coordinated governance of judiciary and supervision. Promote the improvement of the legal system for civil compensation and tort liability, and support the introduction of compulsory insurance systems in key areas. Support the construction of national insurance innovation pilot zones and demonstration zones.
（18） Strengthen the construction of financial culture. Practice Chinese characteristic financial culture. Guide property and casualty insurance companies to establish correct management, performance, and risk perspectives, and adhere to prudent and steady operations. Encourage the property and casualty insurance industry to enrich the carriers, forms, and contents of cultural construction, and create distinctive and high-quality financial cultural brands. Strengthen the theoretical research on property insurance, enhance the linkage between government, industry, academia, and research, and promote the innovative development of theoretical research.
（19） Consolidate the synergy of high-quality development. Strengthen coordination between the central and local governments, and leverage the positive roles of departments, localities, and industries. Strengthen data governance, enhance data sharing with relevant departments, integrate and establish shared databases, and provide data support for the operation and management of the property and casualty insurance industry and related public services. Give full play to the role of infrastructure such as CBIRC and Shanghai Insurance Exchange, as well as industry organizations such as insurance associations, insurance societies, actuarial associations, and insurance asset management associations, to provide support for property and casualty insurance regulation and reform and development.
（20） Enhance the awareness of property and casualty insurance protection throughout society. Encourage the use of insurance mechanisms to share public governance tasks. Strengthen the promotion and education activities of property and casualty insurance, interpret and guide property and casualty insurance policies, and cultivate public awareness of risk prevention and protection. Encourage the property and casualty insurance industry to strengthen effective interaction with insurance consumers and enhance the industry's image with high-quality services.
Attachment: The State Administration of Financial Supervision and Administration of China has released the Action Plan on Strengthening Supervision, Preventing Risks, Promoting Reform, and Promoting High Quality Development of the Property and Casualty Insurance Industry
https://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1189355&itemId=915&generaltype=0
Officials from relevant departments of the State Administration of Financial Supervision and Administration answer questions from reporters on the "Action Plan for Strengthening Supervision, Preventing Risks, Promoting Reform, and Promoting High quality Development of the Property and Casualty Insurance Industry"
https://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1189356&itemId=915&generaltype=0
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