Financial Predators Take The Road Of Insurance Industry To Make Plans To Prevent Risks.

In recent years, financial predators have been making waves through the insurance industry. A small number of private capital entering the insurance industry "dominate", making the company alienated as a financing platform for controlling shareholders.

There are still shortcomings in the practice of exposing insurance regulatory system.

In April 9th, Xiang Junbo, the former chairman of the CIRC, was suspected of serious violation of discipline and was subjected to organizational review, which seriously weakened the authority and credibility of the government regulatory authorities.

The development and supervision of the insurance industry is facing an unprecedented grim situation.

"Insurance is one of the important pillars of modern finance. The stability and health of the insurance market is directly related to financial security and national security."

Chen Wenhui said that since April 9th, the CIRC Party committee has held several meetings to thoroughly study and implement the important speech of general secretary Xi Jinping, especially on the important directive spirit of financial work, and regard it as the fundamental policy and important follow up for doing well the work of insurance supervision.

Combined with the current practice of insurance industry, the "1+4" series of documents should be born at times.

In April 20th, the "1" main document of the "1+4" series was issued to strengthen supervision and safeguard the stable and healthy development of the industry. The main tasks and general requirements of the current insurance supervision were clarified.

The "4" supporting documents are as follows: in April 21st, the CIRC issued a notice to strengthen the risk prevention and control of the insurance industry; in April 28th, it issued a notice to crack down on illegal activities and regulation of market chaos; in May 4th, it issued the guiding opinions of the insurance industry to support the development of the real economy; in May 5th, it made up for the short board of supervision and built a tight and effective insurance system.

Notice.

Chen Wenhui pointed out that the industry is at a critical stage of risk prevention and control, and strong measures must be taken to rectify the deviation. The introduction of the series of documents clarifies the key areas and main directions of the current insurance work, condenses the industry consensus, stabilizes the supervision team, and forms the risk prevention force. It ensures the stable and healthy development of the industry while handling risks in an orderly manner.

We should have a clear idea of the existing financial risks. We should take precautions against it, closely monitor, accurately anticipate, and effectively guard against risks.

Chen Wenhui said: at present, the insurance industry is faced with risks such as liquidity, capital utilization, strategy, new business, external pmission, unclear base, capital inaccuracy, reputation and so on. The vast majority of traditional large and medium-sized insurance companies are sound in operation and controllable in risk, but some radical companies have expanded rapidly in recent years, and hidden risks have been gradually exposed.

In view of the above problems, the CIRC starts from the qualification, acting on behalf and related pactions, and manages the chaos of equity management. In view of the risks of non life insurance investment products, it has stopped such business experiments in a timely manner, guided insurance to return to the main business, and took measures to stop the organization and stop operations in accordance with the law according to the law.

Chen Wenhui said that in the past, the risks of the insurance industry were mainly manifested in the business line, and the risk was easily dispersed in the industry. Now the risk is that a single company itself is a risk point, and the risk disposal is more difficult, especially the cash flow risk.

The cash flow to the enterprise is like the blood to the human body, and the body is healthy only if the blood is sufficient and the flow is smooth.

He said that some radical companies do not have the concept of asset liability matching in operation, short money and long matching, blind investment, once they encounter the situation of product suspension, abnormal surrender and full payment.

It's easy to get into trouble.

"At present, the size of the insurance industry is more than 16 trillion yuan, of which liquidity risk is concentrated on a small number of radical companies."

Chen Wenhui said that for the key risk companies, the CIRC will define various risk leading departments according to different risk categories, risk characteristics and risk levels, integrate and optimize the allocation of regulatory resources, divide the responsibility for marking, and formulate a risk early warning, monitoring and disposal plan.

Under the strict management, the problem companies have realized that the radical development path has not been able to go through in the past, and then the painful pformation. The direct expression is that the premium income has been reduced briefly, and the investment can no longer be "wasteful".

"Clean the house before you can meet the guests."

Chen Wenhui said, "no pains, no pains, no pains, no pains."

Chaos is the manifestation, the root is in the short board, the result manifests as the risk.

We must keep the bottom line of risk, combine the length with the reality, and really let the regulation "grow teeth".

"In the short term, we need to reduce the cash flow risk of some radical companies through" downsizing ".

Chen Wenhui said that these companies hold many high-quality assets in the two tier market, and their synergies with their main businesses are not strong enough. They can be pferred through bulk pactions, which can reduce the pressure on asset ends, alleviate the "hunger and thirst" symptoms of cash flow, and will not cause violent fluctuations in the capital market.

"The failure of corporate governance is the" gene "of radical business behavior. We must solve the problem of" single dominance "and capital incorrectness.

Chen Wenhui said that the implementation of corporate governance supervision and assessment should be strengthened, and investors' background qualification and related relationship should be strengthened through thorough review, and the information disclosure and reporting requirements of corporate governance should be strictly implemented.

It is forbidden to act on behalf of the company or violate related shareholding activities, and restrict the exercise of voting rights and directors by the illegal organizations according to law, until the pfer of the auction equity is ordered. The parties concerned should be blacklisted and enter the industry, so as to effectively improve the effectiveness of corporate governance.

Regarding capital incorrectness, he said he would focus on whether shareholders directly or indirectly inject capital into insurance companies through bank loans, funds from non self owned funds, equity and deposit receipt.

The shareholders who have reported the source of capital or the relationship between shareholders and the irregularities in making false materials are strictly dealt with according to law.

What is the future of the insurance industry? Chen Wenhui said.

It will lead the insurance industry back to its original source, stick to its main business, improve the design of insurance products, actuarial pricing and reserve rules, establish universal risk control mechanism, restrain high cost short term liabilities business, and promote insurance to play a greater role in tackling poverty alleviation, disaster relief, serious illness protection, and health care for the elderly.

We should guide insurance funds to flow to major national strategic and infrastructural facilities and raise the level of the real economy of insurance services.

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