Cctv newsIn December 2021, China Banking and Insurance Regulatory Commission issued the Regulation on the Solvency of Insurance Companies (II), which will be implemented from 2022. Since the implementation of Rule II, it has achieved positive results in guiding the insurance industry to serve the real economy and supporting the development of the capital market. The heads of relevant departments in China Banking and Insurance Regulatory Commission, China, answered reporters’ questions on relevant issues.
1. What is the background and implementation of Rule II?
Rule II is an important measure for China Banking and Insurance Regulatory Commission to implement the spirit of the Fifth National Financial Work Conference and make a good decision to prevent and resolve major financial risks. The construction of Rule II was started in September 2017, with the goal of guiding the insurance industry to return to the source of security, focusing on its main business, enhancing its ability to serve the real economy, effectively preventing the risks of the insurance industry, and accelerating the full opening up of the financial industry, and comprehensively optimizing and upgrading the original solvency supervision rules. Judging from the implementation in the first half of this year, Rule II has improved the risk sensitivity and effectiveness of regulatory indicators, and achieved positive results in guiding the insurance industry to serve the real economy and supporting the development of the capital market.
2. What specific policies does Rule II have in guiding the insurance industry to serve the real economy? What is the initial effect?
Rule II gives a number of support policies to green bonds, scientific and technological innovation, export credit insurance, agricultural insurance and endowment insurance, which effectively promotes the insurance industry to enhance its ability to serve the real economy and enhance its quality and efficiency.
One isGuide insurance companies to support scientific and technological innovation. Rule II allows professional technology insurance companies to measure the minimum insurance risk capital at 90%, so as to guide them to better serve the technology field and implement the concept of innovation and development. This policy can greatly save the minimum capital of professional technology insurance companies and improve their solvency adequacy ratio. By the end of the second quarter of this year, the supporting companies had provided 2.1 billion yuan more risk protection for the technology field.
The second isEncourage the development of exclusive commercial endowment insurance business. Rule II allows the minimum capital of longevity risk of exclusive commercial endowment insurance products to be measured at the rate of 90%, which strongly supports the development of the third pillar endowment insurance. By the end of the second quarter of this year, the premium of exclusive commercial endowment insurance products in the insurance industry was about 2.2 billion yuan, and it showed a rapid growth trend.
The third isSupport insurance companies to invest in green bonds. Rule II allows the minimum capital of green bonds invested by insurance companies to be measured at 90%, which guides the insurance industry to implement the concept of green development and effectively promotes the enthusiasm of insurance companies to invest in green bonds.
The fourth isSupport the development of agricultural insurance business. Rule II allows insurance companies to measure the minimum insurance risk capital of agricultural insurance business at a rate of 90%. At the end of the second quarter of this year, this policy saved the minimum capital of the insurance industry by about 2.7 billion yuan, which can support insurance companies to provide about 420 billion yuan more risk protection for agriculture, rural areas and farmers, and effectively implement the decision-making and deployment of "ensuring food and energy security".
The fifth isSupport the development of export credit insurance, overseas investment insurance and other businesses. Rule II gives support to medium and long-term export credit insurance and overseas investment insurance, and allows the minimum capital of insurance risk to be measured at 90%. Based on the data at the end of the second quarter of this year, this policy can support insurance companies to provide about 240 billion yuan more risk protection for China’s exports and overseas investment, and effectively implement the decision-making arrangements for stabilizing foreign trade.
3. What are the policies of Rule II in supporting the development of the capital market? What is the current effect?
Rule II gives preferential policies to insurance funds to invest in banking stocks, large-cap blue-chip stocks and publicly offered infrastructure securities investment funds (publicly offered REITs), supports the insurance industry to participate in the capital market reform, and maintains the healthy and stable development of the capital market.
One isSupport insurance companies to invest in large-cap blue chip stocks. Rule II allows the minimum capital of the Shanghai and Shenzhen 300 constituent stocks invested by insurance companies to be measured according to the proportion of 95% to support the smooth operation of the capital market. Under the guidance of policy support, by the end of the second quarter of this year, the insurance industry had invested about 790 billion yuan in the Shanghai and Shenzhen 300 constituent stocks, saving a minimum capital of 13.8 billion yuan, which strongly supported the smooth operation of the capital market.
The second isSupport insurance companies to invest in public offering of infrastructure securities investment funds (public offering REITs). Rule II allows insurance companies to invest in publicly offered REITs, allowing the minimum capital to be measured according to the proportion of 80% to support the reform and development of the capital market. By the end of the second quarter of this year, the insurance industry had invested about 7 billion yuan in public offering REITs, accounting for about 13% of the total scale of public offering REITs, and it was an important institutional investor. The above policies saved the minimum capital of insurance companies by about 720 million yuan, which strongly supported the insurance industry to participate in the reform and development of the capital market.
The third isSupport and encourage insurance companies to invest in banking stocks. Rule II For the long-term equity investment of banks invested by insurance companies, if the dividend yield meets certain conditions, the impairment requirement can be exempted, and the insurance company is allowed to take its book value as the recognized value. This policy supports insurance companies to hold shares of listed banks for a long time and maintain the healthy development of the capital market.
4. Next, what other measures will solvency supervision take to guide the insurance industry to serve the real economy and support the development of the capital market?
According to the decision of the CPC Central Committee in the State Council, China Banking and Insurance Regulatory Commission will continue to improve solvency supervision standards, thoroughly implement new development concepts, strengthen policy guidance, and continuously enhance the insurance industry’s ability to serve the overall economic and social situation on the basis of scientific and effective risk prevention and control.onebeContinue to support the development of commercial pension business. According to the characteristics and development reality of commercial pension business, we will study and formulate preferential policies for solvency, reduce the capital occupation of the company, support the insurance industry to carry out commercial pension business, and promote the healthy development of the third pillar pension insurance.twobeFor the investment assets formed by insurance funds supporting and implementing the national strategic decision-making, study and clarify their definition standards and preferential policies, reduce their minimum capital requirements, and enhance the ability of the insurance industry to serve the overall situation.