,000 words long text
Preface
When many people consult about buying insurance, they will be confused about the products recommended by the broker and the insurance company. This insurance company has never heard of it. Is it a small company, right? What if it goes bankrupt? What should I do if I don’t pay the compensation when making a claim?
is actually worried about whether this insurance is reliable? Can you pay?
So, when we buy insurance, do we need to look at the size of the insurance company?
In fact, most friends usually use "fame" to judge the "big" and "small" of insurance companies. What I often hear about are "big companies", such as China Life, Ping An , Peer Insurance , Taikang, Pacific, Pacific, AIA... What I have never heard of is "small companies".
(The picture is from the Internet, delete if infringement)
1. The difference between "big" companies and "small" companies
In fact, there are nearly 200 insurance companies in China, including more than 80 life insurance companies, and many people only know three or five of them. How to measure the size of a company?
In many people's minds, they think that buying insurance must be reliable for large companies.
So which ones are considered big companies? Is famous? Large scale? Large sales? Large registered capital? Or is it a strong shareholder? Or is it high solvency?
(The picture is from the Internet, delete if infringes)
1. Differences between sizes
Assuming that we value the size of insurance companies , we may need to analyze it from the aspects of registered capital, premium scale, shareholder background analysis, etc.
- premium scale ranking: reflects the market share and is also a reflection of an insurance company's comprehensive marketing ability;
- registered capital : It is directly related to solvency. When an insurance company is established, it is paid-in capital, so the ability to contribute is very important.
- Shareholder background analysis : It is also very important, because if you lose money, the shareholders' ability to continue to contribute will be tested later. In addition, some insurance companies often encounter disputes between shareholders, so if the shareholders operate well, the company's stability will naturally have a good foundation.
Let’s take a look at the past 2021 premium scale ranking:
(Table 1) Data source: Official website of each insurance company
You see, it seems that no insurance company on the table is a real "small" company.
First take ICBC AXA as an example. Baidu Encyclopedia information is as follows:
The world's largest bank with the largest market value, Industrial and Commercial Bank of China, the world's largest insurance group AXA AXA Group, and China Minmetals Group, the world's top 500 central enterprise, China Minmetals Group Corporation, took out this list of shareholders, but China Life Ping An dare not underestimate it.
You can see from the company's introduction that ICBC AXA is not a small company in any aspect. So it is not that what you have heard of is a big company, but that you have never heard of is a small company.
Similarly, some joint ventures that you have never heard of or rarely heard of are also famous . For example:
Yingda Life Insurance is controlled by the State Grid Corporation, and State Grid is the actual controller and the US Wantong Life Insurance holds a shareholding.
China Life Insurance is a joint venture between COFCO Group and the UK Aviva Group. COFCO Group is a Fortune 500 enterprise, China's largest grain, oil and food enterprise, central enterprise, and China's leading diversified product and service provider in the agricultural and food fields; Aviva Group ("AVIVA" in English) was established in 1696 and is headquartered in London. It ranks 28th among the world's top 500 enterprises announced by the US Fortune magazine in 2006, and is the largest and fifth largest insurance group in the world.
Zhongyi Life Insurance is a joint venture between China National Petroleum and Natural Gas Group Corporation (CNPC) and ASSICURAZIONI GENERALALI. There is no need to say more about
, right? Although the stock price is not very good. The introduction of Zhongli Insurance is as follows:
Even if you don’t understand the background of foreign insurance companies , any of the Chinese-funded companies such as State Grid, COFCO Group, and PetroChina are famous and well-known.
Take some newly established insurance companies, for example:
The shareholders of Huagui Life Insurance are Guizhou Financial Holdings Group and Moutai Distillery (Group). The capital behind Guizhou Financial Holdings is the Guizhou Provincial Department of Finance. Moutai Distillery was the former "share king" of China. Even now, its market value is far beyond Ali and IBC .
(Table II) Data source: wind information
Guofu Life Insurance is made by Guangxi Investment Group , Vipshop, Guangxi Daily Media Group , etc. The capital behind it is Guangxi State-owned Assets Supervision and Administration Commission, and everyone must be familiar with Vipshop.
Even , which has a market share of only 0.03%, China-Korean Life , is also very well-known. It is jointly established by Zhejiang Oriental Financial Holding Group, a subsidiary of Zhejiang State-owned Assets Supervision and Administration Commission, and South Korea Hanhua Life Insurance Co., Ltd.,
Zhejiang Oriental Financial Holding Group Co., Ltd. is a core enterprise under Zhejiang State-owned Assets Supervision and Administration Commission, Zhejiang International Trade Group Co., Ltd. has 39 holding subsidiaries and more than 20 companies. The core business involves finance, finance and domestic and foreign trade fields. It is a state-owned listed financial holding platform in Zhejiang Province.
Hanhua Life Insurance was established in 1946. It is the earliest life insurance company in South Korea and the second largest life insurance company in South Korea. It is the core of Hanwha Group's financial network, one of the top 500 companies in the world and one of the top ten commercial enterprises in South Korea. Hanhua Life Insurance operates 7 overseas branches in 5 countries. At the end of 2017, the risk capital standard (RBC) of property soundness indicators reached 206.4%, and in the evaluation of insurance solvency, it achieved the highest grade (AAA) for 11 consecutive years. Among the listed life insurance companies in South Korea, it was the first to receive the evaluation of international credit rating companies Moody's and Fitch's overseas credit ratings A1 and A+.
The registered capital is Fosun United Health and Ruihua Health , with "only" 500 million. These two companies, especially Fosun United, are well-known in the Internet insurance market. In recent years, they have launched a number of cost-effective Internet celebrity health insurance on the Internet, such as Mommy Baobei, Darwin No. 5 Honor Edition, Chaoyuebao 2020, Lejian Life... Ruihua Health also became popular with products such as Kang Ruibao and Xinruibao. Although the products are relatively niche, Yiyue Wuyou, which was launched last year, also attracted countless fans...
, the main shareholder of Fosun United Health , and is under the Fosun Group . Fosun Group ranked 459th in the 2021 Forbes Global 2000 Listed Companies, and ranked in the top 50 in the top 500 private enterprises in China for three consecutive years. In the pharmaceutical and big health industries, there shouldn’t be many people who have never heard of Fosun. The shareholders of
Ruihua Health are Xianyang Yuhong Real Estate, Guangzhou Shijia Holdings, Shenzhen Oriental Land Group, Shanghai Tianxi Jiafu Putike Hotel and Shenzhen Wannato Industrial. Although they are low-key, they are also heroes.
(The picture is from the Internet, delete if infringement)
2. Solvency
Whether the insurance company can afford the compensation depends on the solvency.
The solvency of an insurance company refers to the ability of an insurance company to fulfill all its obligations under its contract at any time. It reflects a relationship between the insurance company's assets and liabilities.
Solvency is crucial to the healthy operation of insurance companies. Once a solvency crisis occurs, not only will the insurance company be unable to maintain normal operations, but the interests of the insured or policyholder will be threatened or damaged, but it may also have a huge destructive effect on the normal operation of the national economy and social stability. The solvency supervision of insurance companies has become an important goal of the state's supervision of the insurance industry and is also the core content of its supervision.
) Solvency adequacy ratio
Solvency adequacy ratio = actual capital/minimum capital, that is, the ratio of the actual capital of the insurance company to the minimum capital.
) What kind of solvency is considered to meet the standards?
At the beginning of 2021, the China Banking and Insurance Regulatory Commission officially issued the " Insurance Companies Solvency Management Regulations ", which will be officially implemented from March 1, 2021.
According to the new regulations, the solvency regulatory indicators will be expanded to 3. Only when 3 items are met at the same time can it be considered "solvency compliance company" .
A——Core solvency adequacy ratio: not less than 50%;
B——Comprehensive solvency: not less than 100%;
C——Comprehensive risk rating: not less than B.
And, according to the new solvency regulations, the China Banking and Insurance Regulatory Commission and the dispatched agencies will conduct key inspections on companies with a comprehensive solvency adequacy ratio of less than 120% and a core solvency adequacy ratio of less than 60%. In addition, according to the new Internet regulations, the sales of Internet insurance products are related to the comprehensive solvency, core solvency and comprehensive risk ratings of the Insurance Corporation for four consecutive quarters.
Therefore, solvency must be maintained at a relatively sufficient level.
) The higher the solvency, the better?
is not necessarily true.
Solvency rate itself is a variable value, which is affected by many factors such as the time of the insurer’s establishment, historical stage, business strategy, etc.
Under the strict assessment standards of the China Banking and Insurance Regulatory Commission, if the insurance company has insufficient solvency or is below the regulatory red line, the supervision will force certain measures to order the insurance company to make rectifications, such as requiring shareholders to increase capital, restricting shareholder dividends, restricting the establishment of branches, restricting the use of funds, suspending the issuance of new insurance policies, etc.
At the same time, the solvency is too high, which may not be a good thing for insurance companies or industries. It may be that the insurance company has a lot of money to lie on the books and is idle, which means that the insurance company's investment efficiency is low, the cash flow is poor, or the insurance company's sales are small, and the products cannot be sold. If most insurance companies have high solvency, there must be some problems in the entire industry. For example, the overall economic environment is weak, insurance companies are unwilling to invest, and have no motivation to upgrade products, which is not a good thing for the entire industry and consumers.
Therefore, when choosing insurance, you must be rational and objective. It is not that insurance companies with high solvency must be strong, and the products of insurance companies with high solvency must be good. There are many factors that need to be referenced.
(Table III) Data source: Insurance company official website
You see, Huahui Life Insurance and Xiaokang Life Insurance rank in the top two.
(Table IV) Data source: China Banking and Insurance Regulatory Commission
Whether from the data in each quarter and the full year, Huahui Life Insurance ranked first in terms of the number of insurance policies complained about 100 million yuan in premiums. Judging from the 2021 life insurance company premium scale ranking (see Table 1), Huahui Life Insurance's original insurance premium income was 0.7 million, ranking last among 86 personal life insurance companies (Huaxia, Tianan , no data on retirement at the moment). Perhaps, the low product sales are the fundamental reason why Huahui Life Insurance's solvency is "present-minded".
and Xiaokang Life Insurance is another situation.Its predecessor was Zhongfa Life Insurance , a joint venture between China Post and French Life Insurance in 2005. It is a complete family background. In 2009, China Post fell in love with someone else and established China Post Life Insurance . Since then, Zhongfa Life Insurance lost the channel support of China Post and fell out of favor instantly. In 2015, China Post officially transferred all shares of China Life Insurance. Zhongfa Life Insurance has gone from a rich second generation to an abandoned child.
Because it does not have its own sales channels, Zhongfa Life Insurance cannot sell insurance at all. It has been spending money but does not make money. The insurance that was initially sold through the postal channel will be redeemed soon. Not only do you not make money, you also have to return the principal and profits you have earned to customers. This led to the rapid collapse of China-French Life Insurance's solvency.
For this, the regulatory penalties are: does not allow capital increase and business development.
, which has been reliant on shareholder transfusions, finally ushered in the loosening of supervision in early 2021 and allowed capital increase. With the takeover of 3 companies, a total of 10 funds were injected. The solvency has been increased to 20,000%+. According to the information disclosure in the first quarter of 2021, China Far Life Insurance's comprehensive solvency adequacy ratio 9,893.19%. After the sales efforts, it dropped to 065.38% in the fourth quarter of 2021.
(The picture is from the Internet, delete if infringement)
3. Is it difficult to settle the claim?
Is it difficult to make a claim? The data reflected is odds, claims time limit, etc.
From the data, it is not difficult to obtain a claim.
Whether it is a large company like China Life, Taibao, or a small company like Hengan Standard, the odds difference between them is actually not big. From the perspective of claim limitations, small claims are very efficient. The amount of claims involved in large amounts of claims involves large amounts, including filing, review and investigation, and the claim settlement period is longer, which is easy to understand.
However, most insurance companies do not have long payment time. The average payment time is within 2 days, like the shortest Fude Life Insurance , only 1.38 hours.
So, whether it is a big company or a small company, it is reliable in claims settlement.
Insurance companies all make claims according to the terms of the contract, and they can pay for whatever they deserve. As for the statute of limitations, the statute of limitations of claims for different insurance companies for different cases varies, which is also normal.
(Table V) Data source: 2021 Insurance Company Claims Annual Report
claims time limit, ranking first is Bohai Life Insurance , short insurance 1 hour and long insurance 0.5 days, and one claim can be completed. Hetai Life Insurance is also very fast, with an average closing time of 2.2 hours for small cases and an average application period of 2.5 days for claims. The representative of the large company class China Life Insurance also has good results, with an average of 0.13 days (3.12 hours).
From the table, it can be seen that most insurance companies have not slow small claims. For example, Fude Life Insurance, small claims are 0.14 days (3.36 hours); Sunshine Life Insurance, , can complete small claims in an average of 4.4 hours; Taibao Life Insurance, 0.2 days (4.8 hours); Peking University Founder, small claims are 0.25 days (6 hours)...
As for the claims, the claims in 2021 are basically above 98%, and the relatively low number of people who maintain health (may be a drag on good X insurance), Ruihua Health 94% and Guolian Life Insurance 96.33%. The odds of
ranked first were China Post Life Insurance, reaching 99.95%, and the second and third were Bohai Life Insurance and Taikang Pension , 99.71% and 99.70% respectively.
In fact, since 2020, the proportion of online claims by various insurance companies has gradually increased. For example, Peking University Founder, in 2020, 98.30% of claims are made online, which is very convenient.
You see, whether it is a large company or a small company, the difference in odds is actually not big, it is different from what you imagined or what some agents say.
So, when we buy insurance, is it necessary to worry about the size of the insurance company? Terms are the most important.
(Pictures are from the Internet, delete if infringement)
4. Complaints
021 third and fourth quarters, Ping An Life Insurance , Taikang Life Insurance , and China Life Insurance ranked one to three complaints. However, this list is not very meaningful, after all, sales volume is large, and the number of complaints increases accordingly.
Data source: China Banking and Insurance Regulatory Commission
To objectively reflect the operation and service level of complaint insurance companies, you can use the two indicators of 00 yuan premium complaints (the number of complaints per sales of 100 million yuan premiums) and ,000 insurance policies 20,000 insurance policies (the number of complaints per sales of 10,000 insurance policies) to rank.
Data source: China Banking and Insurance Regulatory Commission
Data source: China Banking and Insurance Regulatory Commission
Well, it seems that Huahui Life Insurance does have many problems. In addition, among the top five complaints for the top 100 million yuan premium, there are small companies (China-US Liantai and Peking University Founder), and large companies (PICC Health and Taikang Life); and among the list of 10,000 insurance policies, there are Chinese companies (Xinmei Life and Love Life ), and joint ventures (China-Italian Life and Yingda Life).
Therefore, the operation and service level of insurance companies is indeed high and low, but this has nothing to do with the size of the company, and it has nothing to do with the nature of the company.
(Pictures are from the Internet, delete if infringement)
2. Top ten security mechanisms for insurance companies
Insurance companies were established by the state financial regulatory authorities in accordance with the law and are directly regulated by the China Banking and Insurance Regulatory Bureau. Every policy that consumers insured is protected by the Insurance Law. There are ten major safety mechanisms behind it, which implement supervision from multiple angles to protect consumers' rights and interests. Domestic insurance companies are safe.
(Pictures are from the Internet, delete if infringement)
1. Strict establishment conditions
The establishment conditions of insurance companies are very strict, with net assets not less than 200 million yuan. It also requires its shareholders to have the ability to make continuous profits, have a good reputation, and have no major illegal and irregular records in the past three years.
Article 68 The establishment of an insurance company shall meet the following conditions:
(I) The major shareholders have continuous profitability, good reputation, have no records of major violations in the past three years, and their net assets shall not be less than RMB 200 million;
(II) Have an articles of association in line with this Law and the Company Law of the People's Republic of China;
(III) Have registered capital in line with the provisions of this Law;
(IV) Have directors, supervisors and senior management personnel with professional knowledge and business experience;
(VII) Have a sound organizational structure and management system;
(VI) Have a business place that meets the requirements and other facilities related to business operations;
(VII) Other conditions stipulated by laws, administrative regulations and insurance supervision and administration agencies of the State Council.
The establishment conditions of insurance companies are strict and the license approval procedures are complex. Even if the assets are strong, it is difficult to obtain a certificate. Shareholders should not only be very rich, have strength, have good reputation, have clean industry background, no records of illegal and irregularities, but also have a high degree of professionalism for insurance. Managers must also understand management and build a good company management system.
(The picture is from the Internet, delete if infringement)
2. The registered capital is strong
The registered capital of the insurance company cannot be less than 200 million yuan, and it must be paid in actual currency.
Article 69: When an insurance company is established, the minimum registered capital limit is RMB 200 million.
The insurance supervision and administration agency of the State Council may adjust the minimum limit of its registered capital based on the business scope and business scale of the insurance company, but it shall not be lower than the limit stipulated in the first paragraph of this article.
The registered capital of an insurance company must be paid monetary capital.
paid currency means how much is the registered capital, and how much must be on the bank's capital verification account . So this 200 million yuan insurance company existed in real money when it was established. Generally, company registration is a subscribed currency. Even if you don’t have a penny, you can register a company through subscribing.
(Pictures are from the Internet, delete if infringement)
3. Strict business supervision
Supervision will always keep a close eye on the daily operations of insurance companies, and understand the operation of insurance companies by allowing insurance companies to submit financial statements, actuarial reports and other information on time.
Article 86 Insurance companies shall submit relevant reports, reports, documents and materials in accordance with the provisions of the insurance supervision and administration agency.
The insurance company's solvency report, financial accounting report, actuarial report, compliance report and other related reports, statements, documents and information must truthfully record insurance business matters, and there shall be no false records, misleading statements or major omissions.
Even if it is trivial matters such as changing the name, changing the business premises, and changing the registered capital, the insurance company must also inform the regulatory authorities.
What should I do if the insurance company goes bankrupt? The Insurance Law stipulates that if an insurance company operating the life insurance business is revoked or goes bankrupt in accordance with the law, the life insurance contract and reserves they hold must be transferred to other insurance companies. If no company is willing to take over, the regulator will forcibly designate an insurance company to accept the transfer.
In other words, our insurance policy shows how much insurance is, and it will still be compensated if we change our company.
Article 92 If an insurance company that operates life insurance business is revoked or declared bankrupt in accordance with the law, the life insurance contract and liability reserves they hold must be transferred to other insurance companies that operate life insurance business; if the transfer agreement cannot be reached with other insurance companies, the insurance company that operates life insurance business shall be designated by the insurance supervision and administration agency of the State Council to accept the transfer. If the transfer of
or if the insurance supervision and administration agency of the State Council is designated to accept the transfer of the life insurance contract and liability reserve specified in the preceding paragraph, the legitimate rights and interests of the insured and beneficiary shall be protected.
is taken over not necessarily a bad thing. For insurance companies, if there is a problem in their business, they can get help from the Banking and Insurance Regulatory Commission at critical moments; for consumers, isn’t it better to worry about the Banking and Insurance Regulatory Commission (or designate other insurance companies) to help you protect your policy rights than you are?
Specific cases, such as the previous New China Life Insurance, the current China Life Insurance, etc., friends can search online.
(The picture is from the Internet, delete if infringement)
4. Margin system
Insurance companies all need to withdraw margin and shall not be used except for repaying debts.
Article 97 An insurance company shall withdraw a deposit at 20% of its total registered capital and deposit it into a bank designated by the insurance supervision and administration agency of the State Council. It shall not be used except for the company being used to repay debts during liquidation.
Assuming that the insurance company will increase its registered capital in the future, it will also withdraw a portion of the capital increase as a margin.
(Pictures are from the Internet, delete if infringement)
5. Liability reserve system
Every time an insurance company collects a premium, an insurance company will withdraw a part of the funds as reserve. This part of the money is used to fulfill the responsibilities that may occur in the future and is also the backing of the insurance company.
Article 98 Insurance companies shall withdraw various liability reserves based on the principles of protecting the interests of the insured and ensuring solvency.
The specific methods for insurance companies to withdraw and carry forward liability reserve will be formulated by the insurance supervision and administration agency of the State Council.
For example, Fude Life Insurance's liability reserve in 2020 is 200 billion+.
There are also nearly 3.5 billion small companies like Lianhetai Life Insurance.
So, don’t worry that insurance companies can’t afford it, they have long been prepared for how much they will pay in the future.
(The picture is from the Internet, delete if infringement)
6. Provident Fund System
In addition to withdrawing deposits and liability reserves, insurance companies must also withdraw provident funds in accordance with the law for future development.
Article 99 Insurance companies shall withdraw provident fund in accordance with the law.
When the insurance company distributes after-tax profits every year, it will include 10% of the withdrawal of the company's statutory provident fund , which is used to improve the company's solvency and smooth the profits. makes up for the losses and maintain the company's stable operation. Only when the accumulated balance of provident fund exceeds 50% of the registered capital, can you no longer need to withdraw it.
(Pictures are from the Internet, delete if infringement)
7. Insurance guarantee fund system
Each insurance company pays as required and is managed by China Insurance Guarantee Fund Co., Ltd. to provide relief to customers of insurance companies that have been revoked or declared bankrupt, or insurance companies that accept life insurance contracts .
Insurance Protection Fund Management Measures Article 16 and 17:
Article 16 If any of the following circumstances occurs, the insurance protection fund may be used:
(I) The insurance company is revoked in accordance with the law or committed bankruptcy in accordance with the law, and its liquidation property is not enough to repay the policy interests;
(II) China Insurance Regulatory Commission Relevant departments in business determine that the insurance company has major risks, which may seriously endanger the public interests of society and financial stability.
Article 17: The use of insurance protection funds shall be formulated by the China Insurance Regulatory Commission and the risk disposal plan and use method shall be submitted to the State Council for approval after consulting with relevant departments.
Insurance guarantee fund companies are responsible for handling specific matters such as registration, issuance, and fund allocation in accordance with the provisions of the risk disposal plan and use methods.
Historically, China Insurance Security Fund has taken action to help insurance companies on the verge of bankruptcy five times.
One is Xinhua Life Insurance . In 2006, Guan Guoliang, chairman of Xinhua Life Insurance, arbitrarily embezzled 13 billion yuan of the company's funds, causing the company to fall into the quagmire of serious lack of solvency. The regulator used the insurance protection fund to purchase 38.815% of Xinhua Life Insurance's equity, becoming its largest shareholder, and successfully rescued Xinhua Life Insurance. Two years later, Xinhua Life Insurance's operations were gradually on track, and the insurance guarantee fund transferred its equity to Central Huijin and made a profit of 1.25 billion yuan. Currently, Xinhua Life Insurance has a good operating condition.
On February 23, 2018, the supervision (formerly China Insurance Regulatory Commission) took over Anbang Insurance Group in accordance with the law due to Wu Xiaohui, former chairman and general manager of Group, suspected of economic crimes and business activities that violate laws and regulations. In July 2019, in order to divest Anbang Insurance Group's related assets, China Insurance Guarantee Fund Co., Ltd. , Sinopec , and SAIC Group were jointly invested to establish 大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大大After being approved, it began to acquire shares of Anbang Life Insurance, Anbang Pension and Anbang Asset Management in accordance with the law, and established a new Property Insurance to undertake Anbang Property Insurance. On February 22, 2020, the China Banking and Insurance Regulatory Commission ended its takeover of Anbang Insurance Group, and 大大官网号 has basically achieved normal operating capabilities.
In addition, there are the previous China United , and the current Huaxia Life and and . Interested friends may wish to check the Internet, the Internet has memories. With the firewall of insurance guarantee funds, it is actually difficult for an insurance company to go bankrupt.
On January 28, 2022, the China Banking and Insurance Regulatory Commission issued the "Insurance Protection Fund Management Measures (Draft for Comments)" to solicit opinions from the entire network. This is the first revision since the second edition of the "Insurance Protection Fund Management Measures" was released in 2008. The main contents of the modification of
include: adjusting the fixed rate to the benchmark rate plus the risk differential rate, establishing a financing mechanism between property insurance and personal insurance protection funds, strengthening legal liability for violating the provisions of the Measures, etc.
Insurance companies are allowed to go bankrupt and there will be corresponding takeover procedures. But before, some people have been misinterpreting that consumer-type serious illnesses do not belong to life insurance, they are not protected, and they cannot be bought; some salesmen of "big companies" will say that xx is a small company, and products that do not die are not protected. If an insurance company goes bankrupt, it cannot provide 100% assistance, and can only provide 80% or 90% assistance, which is unreliable...
and other places that are maliciously misinterpreted, the new management measures have been clarified! The scope of "life insurance business" and "life insurance contract" was clarified; the policy type and policy interests were clarified. life insurance, long-term health insurance, long-term accident insurance and annuity insurance are all included in the "life insurance contract". Long-term critical illness insurance is a "long-term health insurance" and whether it is responsible for death or not, it meets the scope of assistance; and the assistance is provided for insurance companies that have policies acquired, rather than directly facing consumers.
The new management measures will be further modified and improved and will be released and implemented in accordance with the program.
(Pictures are from the Internet, delete if infringement)
8. Solvency supervision
Solvency is the ability of an insurance company to repay debts, and all insurance funds that need to be paid for sold policies become the debt of the insurance company, or the future debt. The insurance company must ensure that the insurance policy it sells has sufficient funds when it needs to be paid. Therefore, solvency is an indicator to measure whether insurance compensation can be afforded. The China Banking and Insurance Regulatory Commission requires that each insurance company's solvency cannot be less than 100%, and it needs to be published on its official website every quarter. Once
is less than 100%, the China Banking and Insurance Regulatory Commission will improve the solvency of insurance companies through various methods, such as limiting dividends to shareholders, increasing capital , restricting the establishment of branches, etc.
Article 138 For insurance companies with insufficient solvency, the insurance supervision and administration agency of the State Council shall list them as key supervision objects and may take the following measures according to the specific circumstances:
(I) Order to increase capital and handle reinsurance ;
(II) Restrict business scope;
(III) Restrict dividends to shareholders;
(IV) Restrict the scale of fixed asset purchase or operating expenses;
(V) Restrict the form and proportion of funds;
(VI) Restrict the addition of branches;
(VIII) Order the auction of non-performing assets and transfer of insurance business;
(VIII) Restrict the salary level of directors, supervisors and senior management;
(Nine) Restrict commercial advertising;
(Ten) Order the suspension of new business.
In addition, the regulatory system currently implemented in my country is the "second generation compensation" (China's second generation solvency supervision system), which is one of the strictest in the world.
Public information from the China Banking and Insurance Regulatory Commission shows that in 2021, the average comprehensive solvency adequacy ratio of 179 insurance companies in my country was 232.1%, and the average core solvency adequacy ratio was 219.7%.
(The picture is from the Internet, delete if infringement)
9. Reinsurance mechanism
The so-called reinsurance mechanism, speaking human words is to insure insurance companies. You bought insurance with the insurance company, and the insurance company charged the premium. But insurance is leveraged after all, and the insurance company is worried that it can't afford to pay, so it bought insurance for itself to prevent it from being unable to pay if it happens.
Article 103 The liability of the insurance company to each dangerous unit, that is, for the maximum loss possible incurred by an insurance accident, shall not exceed 10% of the total capital and provident fund; the excess shall be reinsured. The classification of dangerous units by insurance companies shall comply with the provisions of the insurance supervision and administration agency of the State Council.
A compensation for an insurance policy is all compensated by the insurance company from the consumer's perspective, but from the perspective of risk taking, there may be both insurance companies and reinsurance companies. The Chinese insurance market is a community of "you have me, I have you". For some cases where there are high risks, will take out some premiums and give them to reinsurance companies to share risks, and the development of insurance companies will be more stable.
(Pictures are from the Internet, delete if infringement)
10. Funding use supervision system
After the insurance company receives the premium, it will take a part of it for investment, but the specific places to invest are arranged clearly, and the basic destination is relatively stable:
Article 6 The use of insurance funds is limited to the following forms:
(I) Bank deposits;
(II) Buying and selling securities such as bonds, stocks, securities investment fund shares;
(III) Investing in real estate;
(IV) Other forms of use of funds stipulated by the State Council.
If insurance funds engage in overseas investment, they shall comply with the relevant regulatory regulations of the China Insurance Regulatory Commission.
Article 15 Insurance Group (holding) companies and insurance companies are engaged in the use of insurance funds and shall not engage in the following behaviors:
(I) Deposit in non-bank financial institutions;
(II) Buy stocks that are "special treatment" and "special treatment to warn of the risk of delisting" by the exchange;
(III) Invest in corporate equity and real estate that does not have stable cash flow return expectations or asset appreciation value, high pollution and other projects that do not comply with national industrial policy projects;
(IV) Directly engage in real estate development and construction;
(VII) engaging in venture capital;
(VIII) Use the investment assets formed by the use of insurance funds to provide guarantees or issue loans to others, except for personal policy pledge loans;
(VII) Other investment behaviors prohibited by the China Insurance Regulatory Commission. The China Insurance Regulatory Commission may make appropriate adjustments to the prohibition on the use of insurance funds based on relevant circumstances.
In short, due to the implementation of supervision from multiple angles, insurance companies in China are safe. For customers, even if the insurance company goes bankrupt, it has a complete mechanism to protect the rights and interests of our consumers, and the legitimate rights and interests of life insurance contracts can be protected.
So, when you consider buying insurance, don’t worry about whether the insurance company is big, whether it is safe, and whether it can afford to pay.
(The picture is from the Internet, delete if infringes)
3. Common misunderstandings
Let’s look back and see what common misunderstandings consumers have.
1. Large companies have higher risk tolerance?
"The stronger the registered capital of an insurance company, the higher the scale of premiums, and the higher the intensity of supervision."
"When the insurance company's profits are good, the risk tolerance is stronger, and it can provide us with better service guarantees."
"Put the time to ten or even twenty years later, the risk resistance and profitability of large-brand insurance companies must be more stable, so that we can be more at ease and more at ease."
does not want to explain, so we will briefly understand, from Xinhua Life Insurance, China United, Anbang Insurance, and now China and Tianan, these taken over insurance companies have some development history before they were taken over.
New China Life As early as 2003, the annual premium reached 17.18 billion yuan; in 2004, the national institutional network layout had been fully completed, with 34 provincial branches; in 2005, the total assets exceeded 50 billion yuan, and in 2007, the total assets exceeded 100 billion yuan.
, a veteran state-owned insurance company founded in 1986, was ranked fifth in the national property insurance company ranking in 1996. By 2002, the annual insured amount had reached 162.8 billion yuan, and the insurance business revenue was 628 million yuan. In 2008, before it was taken over, the total assets expanded rapidly to 12.795 billion yuan.
011 was the peak of the development of Anbang Insurance . At that time, its scale was not underestimated by Sinopec. In 2016, when Anbang's total assets peaked, it reached a terrifying 2 trillion yuan.
After turning losses into profits in 2014, the "Huaxia speed" created has not surpassed it yet. In 2013, China Life Insurance's premium income was 37.2 billion yuan, ranking ninth in the market; in 2014, the premium was 71.5 billion yuan, rising seventh; in 2015, the premium was 160.9 billion yuan, ranking fourth; in 2016, the premium was 181.5 billion yuan, ranking fourth; in 2017, the premium was 175.3 billion yuan, retreating fifth, but its new individual insurance standard insurance reached 15.3 billion yuan, an increase of more than 90% year-on-year, and the bank insurance period was 21.1 billion yuan, ranking first in the market. That year, China Life Insurance's net profit exceeded 4 billion yuan. By 2019, China Life Insurance has become a well-deserved insurance giant, with its premium income ranking fourth among insurance companies in the country, second only to China Life Insurance, Ping An and Taiping Insurance.
, which is both the "tomorrow system" of China Life Insurance, was established in November 2000 with a registered capital of 14.5 billion yuan and a total asset scale of over 203.6 billion yuan. In 2019, Tianan Insurance won the top 10 insurance companies' competitiveness rankings, and ranked 43rd among the top 100 private enterprise service industries in China.
OK, these are not "small" companies that have been taken over, no matter how you think they are weak in risk resistance.
(The picture is from the Internet, delete if infringement)
2. Big companies have better services?
What is the most valuable service for insurance companies? There is no doubt that it is a claim.
"As an invisible and intangible product, insurance is one of the reasons why people tend toward big brands is that they think the service is good."
"Big brand insurance companies have been established for a long time, and their departments have been built more perfectly, and the insurance business they operate is more extensive and mature."
"It is precisely because of this that big brand insurance companies are basically spread across the country in branch structures, which provides us with more convenience; and there are also many products, which can meet our different needs."
"At the same time, big products are big products."
"At the same time, big products are large. Brand insurance companies do not need to submit approval layers for large-scale claims cases, and the processing time is faster. After all, our main demand is to get the claim as soon as possible once there is an accident. "
does not explain, see the first chapter of this article, "Is it difficult to make a claim?"
(The picture is from the Internet, delete it if infringes)
3. Will it be difficult to make a claim on "small company"?
Article 23 of the Insurance Law stipulates that after applying for compensation or payment of insurance premiums, approval must be made in a timely manner; if the circumstances are complicated, approval must be made within 30 days. For insurance liability, the obligation to compensate or pay insurance benefits shall be fulfilled within 10 days after reaching the agreement.
In any case, the insurance company must give the results within 30 days and give the money within 10 days after confirming the claim.
The saying that if there is no large company loses faster than small companies .Similarly, see the third chapter of this article, "Is it difficult to settle claims?"
(the picture is from the Internet, delete if infringes)
4. What should I do if the insurance company goes bankrupt after the insurance policy?
Many people will ask this question before buying insurance, worrying that after the company goes bankrupt, will your insurance policy become an empty piece of paper?
Insurance companies are subject to dual supervision by the Insurance Law and the China Insurance Regulatory Commission from their establishment, operation to bankruptcy.
Whether the insurance company goes bankrupt or not, it will not affect our insurance policy.
: Operating insurance business in China must strictly abide by the Insurance Law, which is a law that restricts insurance companies. Whether it is a Chinese-funded company, a joint venture or a purely foreign-funded company, or not a large company or a small company, you must honestly accept the unified supervision of the China Banking and Insurance Regulatory Commission.
The size of an insurance company is not that important for us to actually buy insurance. When we buy insurance, we should consider the product itself and service more, choose insurance based on our actual situation, and buy good products that suit us. This is the key.
Every policy you buy contains your understanding of insurance~
(The picture is from the Internet, delete if infringes)
Ps:
Buying insurance is never an easy task. Don’t buy insurance easily. You must choose the insurance that suits you most according to your physical condition, economic conditions, living habits, etc. through horizontal and vertical comparisons of different products. If you don’t understand the rules, protection, services, premiums, etc. of insurance products, and don’t know how to choose, please remember to consult the insurance professionals around you.
