Depth report

　　

Insurance intermediary, this takes home total insurance cost income to exceed 80 % market, experiencing "go moisture" management and rectify.

China Banking and Insurance Regulatory Commission (CBRC) recently issued a notice on printing and Distributing the Work Plan for sorting out the problems of Insurance intermediaries, requiring an orderly liquidation of insurance intermediaries that cannot operate properly, continuous rectification of illegal acts in the market, and guiding insurance intermediaries to improve quality and efficiency. At the same time, Shenzhen, Hubei and other places of the banking regulatory bureau also recently followed up a document, clear to the insurance intermediary quality improvement, rectification.

Jiang Bo, director of the Intermediary Department of China Banking and Insurance Regulatory Commission (CBRC), introduced the idea of insurance intermediary supervision in 2022 in his article, pointing out that the construction of the new insurance intermediary market system should be promoted as the main line, and the quality and efficiency should be improved in a realistic and pragmatic manner, so as to push forward the construction of the new insurance intermediary market system in depth.

Behind the high growth of intermediary market there are worries about extensive development

According to the official caliber, insurance intermediaries are divided into professional insurance intermediaries and insurance agents. Insurance intermediaries include insurance agents, insurance brokers and insurance appraisal institutions. Bank concurrent-business insurance agency (Banks), insurance companies, mutual agency (personal insurance companies, property insurance company), dealer agency (car sales agency, vehicle maintenance and repair, automobile transport agencies and other dealer agency), public service institutions (postal class system, petroleum and petrochemical, telecommunications, electricity gas travel agencies, tourist class Other financial institutions.

For many years, the insurance intermediary channel in China has been the main channel of insurance sales, accounting for more than 80% of the premiums. According to statistics, insurance intermediary channels achieved 4.2 trillion yuan of premium income in 2021, with a year-on-year growth of 5.46%, accounting for 87.95% of the country's total premium income. By the end of 2021, China had 2,610 professional insurance intermediaries, more than 20,000 concurrent insurance agencies, and more than 9.6 million registered employees in insurance companies and professional insurance intermediaries.

At present, insurance intermediaries in China are mainly insurance agents and insurance marketers, but in recent years, insurance professional intermediaries have developed rapidly. In 2021, China's insurance professional intermediaries achieved main business income of 119.321 billion yuan, with a year-on-year growth of 8.39%.

Although China's insurance intermediary market is growing fast, the overall development model is extensive and the development quality and competitiveness are not high. Especially in the field of life insurance, there are many small and medium-sized institutions with strong regional strength and lack of professionalism. According to a PWC report, in the first quarter of 2022, the CBRC and its local offices issued 602 regulatory fines, involving 104 insurance institutions, of which 48 were intermediaries, accounting for nearly half. Seeking improper benefits for other institutions or individuals by taking advantage of their business facilities; Preparing or providing false reports, statements, documents and materials; False list of expenses and so on become intermediary agencies are punished.

Regulation continues to squeeze the "moisture" out of intermediary market

Jiang Bo, director of the INTERMEDIARY department of the China Banking and Insurance Regulatory Commission (CBRC), wrote in April this year that at present, there is still a gap between the quality of insurance intermediaries and the high-quality development of the industry and the need for diversified consumer protection, and some institutions have not yet got rid of the extensive growth mode of operation and management. Insurance intermediary supervision should accurately and clearly grasp the current situation, and promote the "quality" optimization of insurance intermediary industry on the basis of "quantity" by improving market rules, regulating market behavior, guiding quality development and improving service.

As a matter of fact, since 2019, the regulatory authorities have started a special management work to eliminate the "moisture" in the insurance intermediary market.

In April 2019, THE CBRC issued the Work Plan for Chaos Rectification of Insurance Intermediary Market in 2019, focusing on the chaos rectification of insurance intermediary market, such as weak risk prevention awareness, inadequate implementation of control responsibilities and illegal cooperation with third-party network platforms. Through the rectification of chaos, insurance institutions are forced to strengthen internal control and management, properly deal with potential risks, effectively regulate the market order, and promote the long-term steady development of insurance intermediary market.

In June this year, THE CBRC again issued the Notice on Printing and Distributing the Work Plan of Sorting out the problems of "Multiple Scattered Insurance Intermediary Institutions", requiring all regions to clear up the three categories of problem institutions that could not normally expand their business, including clearing and withdrawing insurance intermediary institutions with "no staff, no place and no business". Liquidate insurance intermediaries that do not meet the current regulatory requirements; To clear up the branch management and control disorder, the existence of "joining", "affiliated" and other legal person insurance intermediary institutions, and close down the relevant branches.

At the same time, shenzhen, Hubei and other places have also issued documents, requiring an orderly liquidation of problem insurance intermediaries. For example, Hubei Banking and Insurance Regulatory Bureau recently issued the Notice on the Investigation and Clean-up of Insurance intermediaries in the province, requiring orderly clearing of insurance intermediaries that cannot operate normally and continuous rectification of market violations. At the same time, the requirements of serious rectification of fake intermediary business, false list of fees and other illegal activities, crack down on channel over single business.

The Shenzhen Banking and Insurance Regulatory Bureau issued the "Implementation Opinions on Promoting the Construction of a New Insurance Intermediary Market System", requiring all institutions to actively cooperate with the regulatory authorities to carry out the liquidation and rectification of insurance intermediary institutions within their jurisdiction, focusing on completing the market withdrawal without place, personnel and business institutions and clearing and improving the quality of "sleeping" institutions. At the same time, it proposes to gradually build a new insurance intermediary market system of "one body and five dimensions" with "reasonable market structure, stable operating subjects, standardized market order, solid development foundation and strict risk prevention and control" in three years, and cultivate a batch of high-quality insurance intermediary companies.

At present, in order to solve the problem of "many, scattered and disorderly insurance intermediaries" and promote the development of the industry to high quality, the regulatory authorities are promoting the regulation of insurance intermediaries from top to bottom.