2008-01-14
Currently, China's micro-life insurance, micro-accident insurance, micro-health insurance, micro-agricultural and property insurance have been developed to varying degrees. In China, the development of micro-insurance for the "three rural areas" has attracted attention. Chen Wenhui, Assistant Chairman of CIRC, pointed out that the development of microinsurance is conducive to the improvement of the rural financial and social security system in rural areas, and it is an important means for the insurance industry to coordinate urban and rural development, implement the scientific outlook on development, and build a new socialist countryside and a harmonious society. CIRC will actively promote the healthy development of microinsurance.
It is understood that micro-insurance for both rural and urban low-income people, "three rural" insurance and micro-insurance has a certain cross. In the process of the insurance industry serving the "three rural", the insurance business with micro-insurance characteristics has also gradually developed in China.
The person in charge of the relevant departments of the China Insurance Regulatory Commission (CIRC) introduced the situation of micro-insurance in China:
1, small life insurance. In view of the obvious gap between urban and rural areas in China, the lack of social security in rural areas, the characteristics of the weaker anti-risk capacity, for farmers to develop a special life and death of two insurance sold only in the county area. The product payment starting point is low, simple insurance procedures, relatively high protection, annual premium of 100 yuan, including 8 times the accidental death protection, the end of the period of excess return to the capital. 2007 China Life (601628 quotes, stock bar) new simple life insurance premiums amounted to 1.127 billion yuan, for the 1.2 million farmers to provide accidental risk protection of more than 90 billion yuan and the basic amount of 11.8 billion yuan.
2, small agricultural and property insurance. Mainly for farmers to provide agricultural production safety protection, the current market products amounted to more than 160, covering a variety of areas, including planting, breeding, farm buildings, farmers' household property, farm machinery. According to incomplete statistics, from January to September 2007, the national planting and raising two industries and agriculture-related property insurance premium income of 4.29 billion yuan, an increase of 400% over the 2006 annual growth; to provide risk protection of 430 billion yuan, an increase of 480% over the 2006 annual growth, the insured area of more than 350 million acres of crops, the number of farmers covered by the insurance amounted to 270 million people.
3, small accident and small health insurance. Mainly for farmers to provide insurance for the economic losses caused by disease and childbirth. At present, there are three main forms: First, the insurance company commissioned by the government to undertake the new rural cooperative medical insurance. At present, 113 counties (cities and districts) in Jiangsu, Henan, Guangdong and other provinces and cities are involved in the pilot New Rural Cooperative Medical Insurance Scheme; in the first three quarters of 2007, 29 million farmers participated in the scheme, and 2.68 billion yuan was mobilized from the Cooperative Medical Fund, which provided compensation amounting to 1.18 billion yuan for more than 1.7 million people. The second is micro-insurance for migrant farmers. The main purpose of this program is to provide microinsurance services to migrant farmers for travel safety, accidental injuries, major illnesses and disabilities. The third is rural family planning insurance. This is a package of insurance services for rural family planning families, including old age, accidents, maternal and child health, one-child insurance and other insurance services.
4, microcredit insurance. The insurance is to rural credit unions and other rural financial institutions to issue small loans as an entry point to transfer the farmers due to disease, disability or accidental death caused by the risk of not having the financial ability to repay the loan as scheduled. The product is highly targeted and has a low rate, which solves the risk protection problem for both the lending farmers and the rural credit unions.
In addition, insurance professional intermediaries and insurance companies have cooperated to develop some micro-insurance products suitable for urban and rural low-income families. For example, Jiangtai Insurance Brokerage Company and PICC cooperated to develop "fruit tree insurance" and "cow insurance"; Xiamen Jianke Insurance Brokerage Company cooperated with China Life Insurance Company to develop "personal accident insurance for building construction enterprises"; Qingdao Zhongxing Insurance Company cooperated with China Life Insurance Company to develop "personal accident insurance for building construction enterprises"; Qingdao Zhongxing Insurance Company cooperated with China Life Insurance Company to develop "personal accident insurance for building construction enterprises". Qingdao Zhongxing Insurance Agency Company cooperated with Pacific Property and Casualty Insurance Company to develop "Wheat Fire Insurance" and "Vegetable Greenhouse Insurance"; Shanghai Huanya Insurance Brokerage Company cooperated with the insurance company to develop "Third Party Insurance for Motorized Vehicles" and "Third Party Insurance for Motorized Vehicles". The company has also developed the "third-party liability insurance for motorized vehicles" in cooperation with the insurance company.
According to the CIRC relevant departments responsible for the introduction of China's urban and rural, regional differences, insurance companies in micro-insurance business management, sales channels and other aspects of the different practices, there are mainly three modes:
First, a purely commercial mode of operation. At present, more than 90% of the rural life insurance business adopts this model, mainly using life insurance company branches above the county as a platform to build a three-tier service network of rural marketing service departments, insurance villages and village attendants, supplemented by a small number of rural financial institutions and intermediary organizations, to sell life insurance, accident insurance and critical illness insurance and other protection-oriented products to farmers. The government is not involved in the operation of life insurance companies, nor does it provide financial subsidies or other support to insured farmers. The model is to enhance the trust of the industry and extend the service surface through the construction of rural outlets, to win customers through the whole process of good faith construction in the exhibition, underwriting and claims, and to enhance the farmers' trust in insurance through the use of the government's power to publicize the insurance and to promote the development of rural micro-insurance.
The second is the semi-commercial operation mode under the policy support. This model utilizes the professional advantages of commercial insurance companies to provide insurance services for rural low-income people. At present, the new rural cooperative medical insurance, family planning insurance, insurance for migrant workers in cities, policy-based agricultural insurance, and the unified insurance business for farm houses in Fujian and Zhejiang have all adopted this model. There are two main forms of operation under this model: the first form is that the government will raise funds to the company or entrusted management, the company does not bear the risk of the fund, and only charge a small amount of agency or management fees; the second form is that the government funded subsidies to individuals, by the company in accordance with the commercial insurance model of operation.
Third, the establishment of mutual and cooperative insurance organizations. This model is characterized by risk sharing among specific industries, fields and groups of people. For example, the Sunshine Mutual Agricultural Insurance Company operates in the Heilongjiang Agricultural Reclamation Area.
Chen Wenhui pointed out that in the future, the CIRC will promote the healthy development of microinsurance from five aspects. The first is to innovate regulatory policies and establish a microinsurance evaluation system. It will clarify the definition of microinsurance, operating principles, service population, product forms, sales models, regulatory policies, etc. to promote the development of microinsurance. Revise and improve the regulations on insurance part-time agents, allow organizations such as agricultural supply outlets, agricultural product industry associations, professional cooperatives and family planning associations to act as agents for relevant microinsurance products, explore the hierarchical and classified management of rural marketers, and lower the threshold of entry for agents who only sell microinsurance. Establishing an independent statistical system for microinsurance, regularly analyzing indicators reflecting business quality and financial quality, and tracking and evaluating the development of microinsurance. Second, encourage and promote insurance companies to develop microinsurance products suitable for low-income people. Guiding industry associations to formulate standard terms and conditions for microinsurance, and promoting the popularization of microinsurance products and the popularization of insurance policies, so that the general public can understand, use and afford them. Strengthening the review of microinsurance products and promotional materials to effectively protect consumer interests. Actively explore microinsurance product pricing reform, and encourage insurance companies to develop targeted microinsurance products with moderate protection, low premiums and simple terms. Third, encourage the exploration of diversified microinsurance sales channels. Encourage insurance companies to provide microinsurance services by hiring highly qualified village cadres with the help of policy insurance or service platforms built by agricultural support policies. Encourage insurance companies through agricultural machinery stations, pesticides, fertilizers and other agricultural supplies sales outlets to represent a number of simple liability, terms and conditions, low premiums for small life insurance products. Sell relevant planting and breeding insurance products through existing agricultural industry associations, professional cooperatives, agricultural leading enterprises and other rural cooperative organizations. Strengthen cooperation with financial institutions such as post offices, agricultural credit cooperatives and agricultural banks, and develop microinsurance products such as card-type home insurance, microcredit guarantee insurance and microcredit personal accident insurance with the help of their network platforms. Provide microinsurance services for low-income urban residents through community service organizations such as properties and neighborhood committees. Fourth, improve the service level of the microinsurance market. Supporting and guiding insurance companies to scientifically and reasonably distribute rural service outlets, and gradually establishing and perfecting the three-tier service system of county companies, rural marketing service departments and village attendants. According to the characteristics of dispersed and inconvenient transportation of microinsurance clients, the service authority of payment, insurance coverage and claim settlement will be gradually extended to the grass-roots marketing service department, so as to provide services for low-income policyholders in close proximity, and to realize the integration, standardization and humanization of microinsurance services. Integrity construction is carried out throughout the whole process of microinsurance operation and management. Regular training and signing of integrity commitment are adopted to strengthen the integrity education of the persons in charge of the outlets, and to establish a credit system, supervisory and management system, and reward and punishment mechanism for individual agents and village attendants, so as to intensify the punishment for breach of trust. Innovative service methods. This can be done by establishing a publicized bulletin board for compensation payments to accept customer supervision and increase customer trust in insurance. Combined with the construction of new rural areas, provide farmers with various value-added services, such as free medical checkups for farmers can be sent to the countryside by means of special vehicles; combined with the popularization of insurance knowledge, in a way that is popular among the masses, specially rehearsed recreational programs suitable for farmers and so on. Fifth, strengthening the coordination of microinsurance development. Strengthen communication and coordination with relevant ministries and commissions and governments at all levels to strive for reasonable tax policies for rural marketers and improve their motivation; actively participate in the reform of the national medical and healthcare system and strive for a favorable medical environment for the development of rural health insurance. Strengthening cooperation with the banking industry, exploring the combination of rural microinsurance and rural finance, and serving to improve the rural financial market. Guiding insurance companies to continue to increase publicity efforts and innovate publicity methods. Actively seek support from local governments, and utilize the government's influence in publicity to increase the effectiveness of publicizing and popularizing insurance knowledge among farmers. Combined with the government's "three to the countryside" project, with the help of claims marketing, public welfare marketing and other ways and means, in the low-income farmer groups to promote the role of micro-insurance and the positive effect of the villagers to cultivate the awareness of insurance, to create a good business environment, and to establish a good image of the industry.
Chen Wenhui pointed out that the next step, the CIRC will actively participate in the International Association of Insurance Supervisors (IAIS) on micro-insurance multilateral affairs and cooperation, to enhance China's influence in related areas. It will also strengthen its research on microinsurance, enhance exchanges with relevant countries, absorb and learn from successful international experiences and practices, and promote the development of microinsurance in China