The “Regulations on the Supervision of Insurance Agents” mainly regulate the following aspects:
The first is to straighten out the legal relationship. According to the definition of insurance agents in the Insurance Law, professional insurance agencies, part-time insurance agencies, and individual insurance agents are included in the same departmental regulations to regulate and adjust, consistent with the Insurance Law.
The second is the uniform application of rules, establishing relatively uniform basic regulatory standards and rules for various insurance agents in terms of operating rules, market exit, and legal liabilities, and further safeguarding market fairness.
The third is to strengthen the supervision during and after the event, straighten out the process of “licensing before the certification”, make a series of institutional arrangements, improve access and exit management, and strengthen supervision during and after the event. Strengthen the main responsibility of insurance institutions, optimize branch management, strengthen self-management and control of institutions, and further clean up market order.
The fourth is to improve the insurance intermediary supervision system. The promulgation of the “Regulations” signifies the basic framework of the insurance intermediary system constructed by the three regulations of “Insurance Agent Supervision Provisions”, “Insurance Broker Supervision Provisions” and “Insurance Adjuster Supervision Provisions” The establishment has been completed, and a scientific supervision system has been formed with the “Insurance Law” as the leader, three regulations as the main body, and a number of regulatory documents as the support.
In the next step, the China Banking and Insurance Regulatory Commission will strengthen policy publicity and business training, and on the basis of the “Regulations on the Supervision of Insurance Agents”, it will issue relevant supporting policies as soon as possible to promote the healthy and stable development of the insurance agency market.
The heads of relevant departments of the China Banking and Insurance Regulatory Commission answered reporters’ questions on the “Regulations”:
1. What is the background for the formulation and promulgation of the Regulations?
Insurance agents refer to institutions or individuals that charge commissions from insurance companies and handle insurance business on their behalf within the scope of the insurance company’s authorization, including professional insurance agencies, concurrent insurance agencies, and individual insurance agents. Up to now, 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 “Insurance Law” clearly stipulates the concept of insurance agents. However, at the level of departmental regulations and regulatory documents, relevant requirements are scattered in different documents, which to a certain extent causes unclear legal relations and supervision of insurance agents. Unclear system and inconsistent management standards. In order to solve the above problems and consolidate the results of chaos management in recent years, implement tasks such as improving access and exit management in the reform of the insurance intermediary market, encouraging reform and innovation, strengthening institutional self-control, and strengthening supervision and management. Since 2015, the former China Insurance Regulatory Commission The drafting of the “Regulations” was initiated, and the “Regulations on the Supervision of Professional Insurance Agencies”, “Measures for the Supervision of Insurance Sales Practitioners”, “Interim Measures for the Administration of Part-time Insurance Agents” and other documents were revised and integrated, with a view to straightening out legal relationships and unifying regulatory standards , Forming a regulatory force.
The “Regulations” incorporate professional insurance agencies, part-time insurance agencies, and individual insurance agents into the same regulations for regulation and adjustment, and establish relatively uniform basic regulatory standards and rules, involving a large number of agencies and a wide range of personnel. During the formulation of the “Regulations”, relevant departments of the Commission conducted extensive investigations, repeated demonstrations, and revised the drafts. In July 2018 and April 2020, it was publicly solicited from the public for opinions. On the basis of fully listening to the opinions of all parties The above conducted a comprehensive review and summary, absorbed some reasonable opinions, and finally completed the formulation of the “Regulations.”
2. What changes have been made in the “Regulations” for professional insurance agencies?
The requirements of the “Regulations” on professional insurance agencies mainly include the following aspects: First, strengthen market access management. Strengthen the review of shareholders of professional insurance agencies and make requirements for shareholders’ capital contribution capabilities. At the same time, regulations are made in terms of capital custody, governance structure, internal control system and business model. The second is to strengthen branch management and control. In order to effectively prevent professional insurance agency companies with weak internal control management and high potential risks from setting up branches indiscriminately, the specific conditions that should be met for the establishment of branches are listed, and at the same time, the management and control responsibilities of professional insurance agencies are further strengthened. The third is to streamline the post-approval process. It is required that after obtaining a license, an insurance professional agency company shall promptly register relevant information in the supervisory information system; if a license is not obtained or its license has been cancelled, it shall promptly go through the registration of changes in related matters to ensure that there is no “insurance agent” in its name. “The words. The fourth is to increase the minimum registered capital. Adjusting the minimum registered capital of regional insurance professional agencies to 20 million yuan will help professional agencies to enhance their ability to resist risks, enhance their awareness of legal compliance, and promote long-term stable operations. Newly established regional agency companies should strictly follow the new standards.
In addition, the “Regulations” also adjusted the relevant requirements for the payment of professional liability insurance and security deposits, set corresponding penalties for illegal sales of non-insurance financial products and operating Internet insurance business, and strengthened daily compliance management.
3. What are the requirements for part-time insurance agencies in the “Regulations”?
The “Regulations” mainly require the following aspects for insurance agencies: First, it clarifies the access conditions, stipulates the basic conditions for the business access of insurance agencies, and clarifies that legal persons hold licenses and authorized branches to operate Mode, and put forward requirements for reporting matters and information disclosure, insurance agency business responsible persons, etc. The second is to improve the exit mechanism, which stipulates the circumstances under which the insurance agency will cancel its license in accordance with the law and the business exit process. The third is to set corresponding penalties, and set penalties within the scope of the regulatory authority for illegal activities of part-time insurance agencies.
In addition, the “Regulations” reserve a certain amount of space for policy formulation of concurrent insurance agencies. In the early stage, the “Administrative Measures for the Insurance Agency Business of Commercial Banks” has been issued and implemented. In the next step, under the framework of the “Regulations”, we will study and formulate non-banking part-time agency supervision policies in accordance with the idea of ”classified policies and steady progress”.
4. What new regulations does the “Regulations” impose on individual insurance agents and employees of insurance agencies?
The “Regulations” put forward the concept of “independent individual insurance agent” for the first time, indicating the market development trend and the direction of supervision. A few days ago, the China Banking and Insurance Regulatory Commission has drafted the “Notice on Matters Concerning the Development of Independent Individual Agents by Insurance Companies (Draft for Solicitation of Comments)” to solicit public opinions and encourage the exploration of relevant systems for independent individual insurance agents to further improve market operation efficiency. The system of independent personal insurance agents will be developed and improved on the basis of practice.
The “Regulations” clarify the concept of employees of insurance agencies, and include personnel engaged in the sales of insurance products, loss surveys, claims settlement, and other businesses in insurance agencies into these regulations, restrict their behavior, and formulate corresponding actions for violations of the regulations. Penalties.
5. A significant change in the “Regulations” is the cancellation of the 3-year validity period of the license. What are the reasons for this?
Since the 18th National Congress of the Communist Party of China, insurance intermediary supervision work has conscientiously implemented the decision and deployment of the Party Central Committee and the State Council to streamline administration and delegate powers, integrate decentralization, and optimize services. On the basis of the substantial cancellation of decentralized administrative licensing matters in the early stage, we have made every effort to streamline administration and delegate power , Deepen the reform of the administrative examination and approval system, effectively strengthen the follow-up management, earnestly fulfill the responsibilities of industry supervisors, and earnestly provide services. The cancellation of the license validity period is an important measure to implement the requirements of decentralization, regulation and service, and to strengthen and improve insurance supervision. The cancellation of the validity period of the license will stimulate the vitality of enterprises and support the accelerated development of high-quality companies. At the same time, the insurance supervision department will further improve the supervision methods, increase inspection and punishment of inferior companies that disrupt the market, and achieve support for the advantages and limit the disadvantages.
6. How to do a good job in the smooth transition of the “Regulations”?
The “Regulations” will come into effect on January 1, 2021. The current “Regulations on the Supervision of Professional Insurance Agencies” (Insurance Regulatory Commission Order No. 5 of 2009), and “Measures for the Supervision of Insurance Sales Practitioners” (Insurance Regulatory Commission Order No. 2 of 2013) , “Interim Measures for the Administration of Part-time Insurance Agency” (Insurance Regulatory Fa﹝2000﹞144), “China Insurance Regulatory Commission’s Decision on Amending the Regulations on the Supervision of Insurance Professional Agencies” (Insurance Regulatory Commission Order 2013 No. 7) will At the same time repeal.
In the next step, the China Banking Regulatory Commission will issue a series of supporting documents as soon as possible to further refine the regulatory requirements for insurance agents, prevent and control risks, manage chaos, tighten the system cage, and maintain a stable and healthy insurance intermediary market order.
Reprint indicated source：Spark Global Limited information