After a lapse of seven months, the Bank of China’s Insurance Regulatory Commission has finally produced results for the special inspection and clean-up of products in the life insurance industry.
On January 10, the China Insurance Regulatory Commission issued "About the personInsurance ProductsThe Circular on the Typical Problems in the Near Future (hereinafter referred to as the “Notice”), in response to the typical problems found in the special inspection and clean-up work in May 2018 and the recent regulatory filings, the six major issues were reported in one breath.
The reporters of the International Finance News found that there were as many as 24 life insurance companies notified by name, covering large, medium and small personal insurance companies. The reasons for being notified of the name are also varied, and there are even many relatively low-level mistakes. Among them, the mascot has two "medium".
"The situation of the report reflects that there are still many problems in the product development management of personal insurance companies." Zhu Junsheng, deputy director of the Insurance Research Institute of the Financial Research Institute of the Development Research Center of the State Council, said in an interview with the International Finance News that insurance products are Insurance insurance and service carriers, insurance companies need to standardize product development, continuously improve product development levels, and improve the professionalism of operations to protect consumer interests.
Self-inspection and rectification are not in place, 11 insurance companies such as AIA are named
In May 2018, the Banking Regulatory Commission officially opened the special inspection and clean-up work for personal insurance products. Self-examination, spot checks, rectifications, and reports have been in full swing for seven months, and three major problems have surfaced.
Among them, the first big problem is that individual companies have not been in place for self-inspection and rectification, and 11 insurance companies have been named.
First, some companies did not improve their rectification. For example, China Merchants Renhe, Hongkang Life Insurance, Jixiang Life Insurance, China Life Insurance, etc. did not submit self-inspection and rectification reports on time, or the overall improvement was improperly arranged.
Second, some companies have reduced their rectification work. For example, Anbang Life Insurance, Anbang Pension, Harmony Health, etc. are not timely in rectifying the problems found in self-examination.
Third, some companies still have omissions after self-examination. For example, Tianan Life Insurance's survival insurance premium for an annuity insurance product does not meet the regulatory requirements, and there is a risk of long-term insurance; Ping An Health and Xinmei's specific medical insurance products have problems such as high insurance coverage and lack of pricing basis; The rate management method for reporting long-term health insurance products is in violation of the regulations on long-term health insurance that cannot be subject to rate fluctuations.
Development and promotion of "two skins", 2 insurance companies were named
In fact, it is not uncommon for insurance products sold in the market to be inconsistent in development and design and sales promotion. This is also the second biggest problem mentioned by the MCRC in the product special inspection and clean-up work.
In this regard, the "Notice" carried out a specific analysis from two aspects, and named China Life and Mascot Life.
First, exaggerate product responsibilities and functions in the product sales process. For example, a medical insurance product of Huaxia Life Insurance, the public channel of the company's marketing channel has a low expression of the national medical insurance policy in the relevant publicity and copywriting, which has a bad influence.
The second is the lack of necessary product sales control in the process of product suspension. For example, a product that has ceased to be sold a year ago by the mascot has been reported by the media to be related to product promotion, which shows that it is available for purchase. The company has obvious omissions in the control of product sales promotion.
In addition, the third problem of product special clean-up work is that the clause design statement is not conducive to consumer understanding. In this regard, the MCRC does not specifically name the insurance company. There are two specific problems: First, the expression that the consumer's interests may be damaged is too scattered, which is not conducive to consumers' full understanding of the knowledge; second, there are many original laws and regulations in the articles, the text is lengthy, and the consumers are not willing to The problems of seeing and not understanding have not been fundamentally resolved.
Product development reports are not in compliance, 9 are "faced"
The Bank of China's Insurance Regulatory Commission also mentioned three major problems for the problems found in the recent product filings.
The first problem is that product development reports are not compliant and unreasonable, and nine insurance companies are being “faced”.
The specific performance is in four aspects:
The first is to submit the approved products as filing products. For example, Sunshine Life’s filing for the record of a pension insurance (universal type) minimum guaranteeinterest rateAt 3.5%, it exceeded the upper limit of regulatory requirements for filing products.
Second, the responsibility design does not meet the relevant regulatory requirements. For example, Haibao Life Insurance's term life insurance products include optional liability for accidental disability.
Third, individual products have the same design or no insurance attributes. For example, some products reported by ICBC Ansheng, Ruitai Life Insurance and other companies are seriously homogenized; Everbright Yongming’s gold insurance products have neither guarantee function nor savings function; Guofu Life Insurance’s medical insurance products are designed as account management, no Risk insurance.
Fourth, the content of the report materials is not complete. For example, Shanghai Life Insurance, Kunlun Health Individual Products are not legally responsible or the chief actuary is signed; Junlong Life InsuranceDividendInsurance products do not provide core solvency data in the fee change information form.
Product terms are not in compliance, Huagui Life is named
The second problem found in recent product filings is that product terms are not designed to be unfair or unfair.
First, the terms are not standardized. For example, the beneficiary in the product terms of some companies stated that the first beneficiary is a loan issuing institution unless otherwise agreed.
Second, the terms are different. For example, in the homepage example of a term life insurance product term of Huagui Life Insurance, the two insured persons are simultaneously insured for the same situation and the insurance policy description is inconsistent.
Third, the claims material requirements are unreasonable. For example, in some company product terms, the insurance payment needs to provide a valid proof of survival, but does not explain the specific form of the valid survival certificate.
The rate is determined to be non-compliant and Taikang Life is named
The third problem found in the product filing was the rate determination, the actuarial assumptions were not compliant, and unscientific. The Banking Regulatory Commission named the individual products of Qianhai Life Insurance and Taikang Life Insurance.
Specifically, one is that individual products are largerinterest raterisk. For example, Qianhai Life Insurance has a dividend-paying two-insurance product. The investment return rate of the profit test is assumed to be 7%, and there is a hidden danger of large interest rate risk.
Second, individual products have the risk of “long-term and short-term”. For example, the surrender rate of the first five years of a life insurance product of Taikang Life Insurance is assumed to exceed 60%.
Supervision continues to strengthen
"For the issue of notification, all companies should take the precautions, increase product management, improve product management capabilities, strengthen internal control management processes, standardize sales and publicity behaviors, and strictly follow product regulatory requirements, do product development design and operation management. "The Bank of China Insurance Regulatory Commission stressed.
The China Insurance Regulatory Commission further stated that the next step will continue to strictly check the products submitted by the companies in accordance with the laws, regulations and relevant regulatory requirements, and regularly report the problems found in the supervision work. If the product management entity's responsibility is not in place, the product development design deviates from the insurance source, the reported product violates relevant regulatory requirements, and the unreasonable or irregular situation listed in the negative list or problem notification is still involved, the regulatory measures will be taken according to law. Implement administrative penalties and strictly investigate the responsibilities of relevant personnel.
“The notification did not say how to deal with the 24 listed insurance companies.” A senior insurance industry insider told the reporter of the International Finance News that the regulator should clearly explain how to deal with the listed insurance companies. If the punishment is imposed, it should be punished. If the sale is stopped, it should be stopped.
(Article source: International Finance News)