China Banking and Insurance Regulatory Commission issued new regulations for overseeing insurance agent access and updating expense management

Original title: China Banking and Insurance Regulatory Commission Issued New Regulations for Insurance Agent Access and Exit Management Update

Recently, the China Banking and Insurance Regulatory Commission officially issued the “Regulation on the supervision of insurance agents” (hereinafter referred to as the “Regulation”), which will be implemented on January 1, 2021. The “Regulations” incorporate professional insurance agencies, insurance agencies part-time and individual insurance agents in the same regulations for regulation and adaptation and establish relatively uniform basic regulatory standards and rules.

Insurance agents refer to institutions or individuals that collect commissions from insurance companies and manage insurance business on their behalf under the insurance company authorization, including professional insurance agencies, competing insurance agencies, and individual insurance agents.

To date, there are 1,776 professional insurance agencies, 32,000 part-time insurance agencies, 220,000 outlets, 9 million individual insurance agents and 3 million employees in insurance intermediaries.

The “Regulation” clarifies four main requirements for professional insurance agencies: first, strengthen market access management, second, strengthen branch management and control, third, straighten post-approval procedures, fourth, increase capital minimum social. In addition, the “Regulation” also adjusted the relevant requirements for the payment of professional indemnity insurance and security deposits, established the corresponding penalties for the illegal sale of non-insurance financial products and operational Internet insurance businesses, and strengthened the daily compliance management.

The “Regulations” mainly emphasize three requirements for part-time insurance agencies: one is to clarify the conditions of access, establish the basic conditions for access to the enterprises of part-time insurance agencies and clarify the business model of legal entities holding licenses and authorized branches, AND to submit requirements for matters relating to reporting and disclosure of information, business managers of insurance agencies, etc. The second is to improve the exit mechanism and establish the circumstances under which the insurance agency will cancel the license in accordance with the law and the process of exiting the business. The third is to establish corresponding sanctions and to establish sanctions within the regulatory authority for illegal activities of part-time insurance agencies.

At the same time, the “Regulations” reserve some space for the formulation of policies of competing insurance agencies. In the initial phase, the “Administrative measures for the insurance agency activity of commercial banks” were issued and implemented. In the next phase, as part of the “Regulation”, the regulatory policies for part-time non-banking agencies will be studied and formulated according to the idea of ​​“classified policies and constant progress”.

Furthermore, the “Regulation” proposes for the first time the concept of “independent individual insurance agent”, indicating the trend of market development and the direction of supervision. A few days ago, the China Banking and Insurance Regulatory Commission drafted the “Communication on Issues Concerning the Development of Independent Individual Agents by Insurance Companies (Draft for Soliciting Comments)” to solicit public opinion. The “Regulations” also clarify the concept of insurance agency employees, including those engaged in the sale of insurance products or conducting claims investigations, claims settlement and other activities in insurance agencies in these regulations, restrict their behavior and formulate violations of the regulations The corresponding sanctions.

It is worth noting that the “Regulations” canceled the 3 year validity period of the license. In this regard, the head of the China Banking and Insurance Regulatory Commission said: “Canceling the license validity period is an important measure to implement decentralization, regulatory and service requirements and to strengthen and improve insurance supervision. L ‘cancellation of the license validity period will stimulate business vitality and support high-quality companies to accelerate Development. At the same time, the insurance supervision department will further improve supervision methods, increase inspection and punishment of inferior companies who they disrupt the market and it will get support for the advantages and limit the disadvantages. “(Yu Yong Li Chenyang, Economic Daily-China Economic Net reporter)Return to Sohu to see more