Seventeen insurance companies announced that they would "temporarily suspend" their business from January 1 next year
Reporter of our Newspaper & NBSP; LengCuiHua
It's crunch time again.
According to the Notice of the General Office of the China Banking And Insurance Regulatory Commission on Further Regulating Internet Life Insurance Business of Insurance Institutions (hereinafter referred to as the Notice), insurance companies should promote the rectification of existing Internet life insurance business and fully comply with the requirements of the Notice by December 31, 2021. This means that the Internet life insurance new regulation transition period is coming to an end.
According to the "notice" requirements, at least 10 insurance companies will lose the Internet life insurance business "ticket", including the Internet premium scale ranked the top insurance companies. According to incomplete statistics, there are 17 insurance companies announced that they will temporarily leave the Internet life insurance business from January 1 next year.
Some insurance companies step on a number of "red lines"
According to the "notice" requirements, some insurance companies stepped on a number of "red line". For example, bohai property insurance and other insurance enterprises have a number of conditions do not meet the requirements, including four consecutive quarters of comprehensive solvency adequacy ratio reached 120%, and core solvency adequacy ratio is not less than 75%; Comprehensive risk rating of class B or above.
Some of the unqualified insurance companies are small and medium-sized insurance companies featured by Internet insurance. For example, Bohai Life insurance latest risk comprehensive rating (classification supervision) results for CLASS C, from January 1 next year, its will be temporarily excluded from the Internet life insurance business. "According to the notice, to carry out online life insurance business, insurance companies need to have a comprehensive risk rating of B or above for four consecutive quarters." Xu Yuchen, partner of Yuchun Actuarial Consulting, told Securities Daily that the Notice is a series of dynamic indicators, and insurance companies that suspend Internet life insurance business can apply to resume the business according to their own conditions after meeting the corresponding conditions.
As the transition period of the new regulations on Internet life insurance is coming to an end, many insurance companies have announced that they will suspend their Internet insurance business from January 1, 2022, or make major adjustments to their Internet insurance products. According to incomplete statistics of securities Daily reporters, a total of 17 insurance companies announced that they would "temporarily leave" Internet life insurance business, including 10 life insurance companies and 7 property insurance companies. As of press time, there are several insurance companies that do not meet the requirements of the notice have not issued a notice to suspend business, but because of its qualification, it is bound to suspend the business, which means that about 20 insurance companies will "temporarily" Internet insurance business.
It is worth noting that among other insurance enterprises that meet the requirements of the Notice, some insurance enterprises cannot sell ordinary life insurance (except fixed-term life insurance) and ordinary annuity insurance products with an insurance period of more than 10 years. To carry out these two businesses, insurance companies need to meet higher requirements, currently meet the requirements of the industry, only more than 20 insurance companies.
Internet life insurance premiums will fall
Existing Internet insurance businesses need to be reformed, and new businesses need to meet the requirements of the Notice. Industry expectations, next year's Internet life insurance market scale will decline significantly.
"Hurry up and get on the bus!" Before December 31, in the sale of all high price net celebrity products all off the shelf, in the future savings insurance, lower pricing, receive time and amount are limited." Recently, an Internet insurance platform continues to push information to reporters. An industry insider said, objectively, as the transition period of the Notice is coming to an end, the stock products do need to be rectified, and a large number of products will be removed from the shelves. But as usual, there is widespread marketing hype ahead of the discontinuation of the product, which both drives up current product premiums and overdraws future markets.
"Ordinary Internet insurance consumers pay more attention to products with savings and financial management attributes, while traditional long-term insurance products are mostly willing to buy through offline channels." One industry analyst told reporters that according to the "notice" requirements, the next available on the Internet channel sales of insurance products is limited to insurance, health insurance (with the exception of nursing risks), term life insurance, insurance during more than a decade of ordinary life insurance (except for term life insurance) and the insurance period of ten years or more ordinary annuity insurance, online optional product is less, But consumers can buy products that cannot be sold online. Although "stop sale" is in sight, consumers still need to make a calm choice according to their own actual situation.
Analysts believe that small and medium-sized insurance companies will be greatly affected. For example, Shenwan Hongyuan Securities analyst Ge Yuxiang believes that the implementation of the new regulations on Internet life insurance has restricted some small and medium-sized insurance companies to expand their business scale through the Internet channel in a low-cost way, and it is expected that the importance of branch approval will increase in the future. At the same time, the trend of separating operation and supervision of online and offline channels is becoming more and more obvious, and the upgrading of traditional agent channels will be further accelerated. Middle and high net worth customer groups will be the focus of insurance companies' competition in the next stage.
From the Internet life insurance market trend, according to the China Insurance Industry Association statistics, last year, the Internet life insurance industry premium reached 211.08 billion yuan, a year-on-year growth of 13.6%. The premiums of 40 insurance companies increased year on year. Among them, Minsheng Insurance and Xintai Life Insurance saw the biggest increases. Xu yuchen said that due to passive and active reasons, about 20 insurance companies will temporarily leave the Internet life insurance business. Among them, including the channel in recent years the premium scale of the larger companies, universal insurance, dividend insurance and investment insurance will not continue to online sales in the Internet channel, it is expected that next year the Internet life insurance market will shrink greatly.
Societe Generale Securities recently released a research report that, affected by the "notice", the growth of Internet life insurance premiums and profits will slow down, demand or backflow offline.