Following the release of the signal in May and the proposed 12 measures for opening up to the outside world, on July 20, the Banking Regulatory Commission officially launched seven new policy measures for opening up to the outside world. The "Daily Economic News" reporter noted that the insurance industry as an important part of the financial industry's opening to the outside world, this opening-up measure once again favors the insurance industry, not only shortens the transition period of foreign-invested companies' foreign-investment ratio restrictions, but also relaxes The entry conditions for foreign insurance companies are eliminated, and the 30-year business life requirement is cancelled.
A spokesman for the China Insurance Regulatory Commission said that the Banking Regulatory Commission continued to promote the opening up of the banking industry's insurance industry, optimize the foreign investment business environment in the financial sector, enrich the market supply, enhance market vitality, enhance competitiveness, and promote the healthy development of China's financial industry. Some insiders said that the further opening up of the insurance industry and the greater participation of foreign insurance companies in the Chinese market will help the Chinese insurance industry to improve product research and development and management levels, promote market competition, improve market efficiency and protect consumers. Benefits will have a positive effect.
Personal insurance foreign stocks are ahead of the transition period to 2020
From the perspective of the opening up measures issued by the Banking Regulatory Commission, there are three main aspects related to the insurance industry: First, shorten the foreign investment risk The company's foreign share ratio has increased from 51% to 100% for the transition period to 2020. On July 2, 2019, Premier Li Keqiang said in a special speech at the opening ceremony of the Davos Forum in 2019 that he would advance the restrictions on the cancellation of foreign life insurance stocks by 2021 to 2020.
The China Insurance Regulatory Commission said that the elimination of foreign life insurance company stock ratio restrictions is conducive to attracting more high-quality foreign insurance institutions to enter the Chinese market, introducing more advanced business ideas and more diversified life insurance products to enhance the vitality of the life insurance market. Provide better services to the real economy. In the next step, relevant laws and regulations such as the Regulations on the Administration of Foreign-funded Insurance Companies of the People's Republic of China will be promoted, and the regulations will be implemented in a timely manner in the relevant administrative licensing work. At the same time, strengthen post-event supervision and maintain market order.
Secondly, the cancellation of the domestic insurance company's total holding of the insurance asset management company's shares shall not be less than 75%, allowing foreign investors to hold more than 25% of the shares; the Banking Regulatory Commission said that the insurance assets management company will be released. The restriction on the proportion of foreign ownership is conducive to absorbing the experience of foreign excellent insurance institutions and stimulating domestic insurance assets.Manage market vitality, promote the asset management ability of insurance asset management companies, and better serve the preservation and appreciation of insurance assets.
The Banking Regulatory Commission stated that it will promptly amend the Interim Provisions on the Administration of Insurance Asset Management Companies and implement the opening measures. While expanding its opening up, the Bank's Insurance Regulatory Commission will continue to improve the regulatory requirements of insurance asset management companies, strengthen the management of shareholder qualifications, further strengthen the compliance requirements of insurance asset management companies, and effectively prevent various risks.
Third, relax the entry conditions for foreign insurance companies and cancel the 30-year business life requirement. At present, foreign insurance companies set up foreign-invested insurance companies in China to meet the requirements of operating insurance business for more than 30 years. In recent years, with the deepening of opening up, most of the Fortune Global 500 foreign insurance companies have entered China and played an active role in the Chinese insurance market. The 30-year business year requirement has been abolished, and foreign insurance companies with business characteristics and expertise but insufficient business years have created conditions for China, which will further enrich the insurance market main body and insurance professional services and promote the high-quality development of the insurance industry.
The Banking Regulatory Commission said that more qualified foreign insurance companies are welcome to set up business organizations in China, combine their advanced experience with China's realities, promote mutual competition with Chinese-funded companies, and jointly serve the real economy and The growing demand for financial services from a wide range of consumers. The Banking Insurance Regulatory Commission will immediately initiate the revision of relevant regulations and implement it upon completion.
The insurance industry's opening up process is accelerating again
"Daily Economic News" reporter noted that this is not the first time that the regulatory authorities have opened their voices to the insurance industry. Since 2018, the insurance industry has never been seen before. The pace has accelerated to the outside world, and various open initiatives have also been launched. Last year, the timetable for opening up the financial industry pointed out that the proportion of foreign-invested companies in the personal insurance company was reduced to 51%, and no restrictions were imposed after three years; the restrictions on the scope of foreign-invested insurance brokers were liberalized, which was consistent with Chinese-funded; A foreign-funded insurance institution is required to open a two-year representative office before it is established.
In May this year, Guo Shuqing, chairman of the China Insurance Regulatory Commission, said in an interview that it will introduce 12 new measures to open up to the outside world, including allowing foreign financial institutions to invest in foreign-invested insurance companies in China; canceling foreign insurance brokerage companies operating in China The insurance brokerage business must meet the requirements of 30 years of operation and total assets of not less than 200 million US dollars;Allow foreign insurance group companies to invest in the establishment of insurance institutions.
Some insiders said that the continuous increase in openness has undoubtedly played a "cardiotonic agent" for foreign insurers to enter the Chinese market, and also brought more opportunities to domestic insurance companies. The reform and development of China's insurance market requires more momentum from the level of market competition. On the one hand, the introduction of foreign capital can draw on its advanced management experience, on the other hand, it can also promote the further development of the domestic insurance market and form a benign competition.
Under the attitude of the regulator to encourage opening up, a number of foreign banks and insurance institutions' market access applications were approved.
In May 2018, after the financial industry opened up the timetable, the China Insurance Regulatory Commission issued the approval of ICBC Ansheng Life Insurance to establish ICBC Ansheng Asset Management Co., Ltd., which is proposed by China to speed up the opening process of the insurance industry. The first joint venture asset management company approved;
In September 2018, the China Insurance Regulatory Commission approved the decision of CITIC Prudential Life Insurance to establish a capital management company;
October 2018, allowed large Han Reinsurance plans to build a branch that operates reinsurance business;
In November 2018, approved Allianz (China) Insurance Holdings Co., Ltd. will become China's first foreign insurance holding company, according to the approval of the China Insurance Regulatory Commission, this year Lianhe (China) should complete the preparatory work and report the application for opening. Once the approval is completed, it will mean that China's insurance industry will take a big step forward in its opening up;
March 18 this year, Hengan Standard Life Insurance The official news release said that Hengan Standard Pension Insurance Co., Ltd. has been approved by the Banking Insurance Regulatory Commission to become the first foreign-funded insurance institution in China.
Industry: Promoting the deepening of the internationalization of the domestic capital market
Industry analysts, the accelerated entry of foreign-invested insurance companies not only makes the market more competitive, but also brings small and medium-sized insurance companies Come to advanced management experience. "Some good experiences of foreign companies will bring a lot of inspiration to the newly established companies in China." Insiders of an insurance company told the "Daily Economic News" reporter that not only experience but also lessons learned, these can be made Domestic consumers get better service, which is a very large spillover of the current open foreign investment.
Daily Economic News (hereinafter referred to as NBD) interviewed the East on some issues of concern to the industryFang Jincheng, Assistant General Manager of Financial Business Department Li Wei -
NBD: What is the impact of the insurance company's foreign shareholding ratio on the insurance industry?
I. The adjustment of the upper limit of foreign ownership of life insurance companies means that the proportion of foreign investment in insurance companies in China is fully liberalized. It is expected that there will be some Sino-foreign joint ventures in the future. Life insurance companies have become foreign-controlled, and will not have a major impact on the domestic insurance industry pattern in the short term. The business entities of foreign-funded financial institutions in China are inferior to Chinese-funded institutions in terms of asset size and number of outlets, and the foreign-invested insurance business model needs a process to adapt to the Chinese insurance market, so the short-term impact is limited.
Second, in the medium and long term, the advanced management concepts and rich product design experience of foreign insurance institutions will be introduced into China with the realization of foreign capital control rights, which is conducive to the long-term development of the insurance industry and also helps. Change the current level of competition in the insurance market and create a healthy development environment.
NBD: This opening is speeding up last year's open policy. What kind of regulatory signal is conveyed?
I. This opening further relaxed the access and operating restrictions of foreign financial institutions, with the aim of providing a better business environment for foreign financial institutions and promoting The continuous deepening of the internationalization of the domestic capital market demonstrates the determination of the regulatory authorities to open up the financial industry.
Second, the opening of financial business is the only way for the development of China's financial industry. The speed of this opening has once again reflected the growing strength of China's financial institutions, the improvement of financial supervision system, and the opening of financial markets. Laid a solid foundation.