Weekend news! The latest announcement from the State Administration of Financial Regulation: Reduction
To promote the return of the insurance industry to its original source and stable operation, and better serve the real economy and the people. Today, the State Administration for Financial Regulation issued a notice on optimizing the regulatory standards for the solvency of insurance companies. On the basis of maintaining the regulatory standards for the comprehensive solvency adequacy ratio of 100% and the core solvency adequacy ratio of 50% unchanged, and based on the actual development of the insurance industry, the regulatory standards for the solvency of insurance companies have been optimized. The notice consists of ten articles, mainly including four aspects.
One is to adjust the minimum capital requirement through differentiation. Require property insurance and reinsurance companies with total assets of over 10 billion yuan but less than 200 billion yuan, as well as life insurance companies with total assets of over 50 billion yuan but less than 500 billion yuan, to calculate a solvency adequacy ratio of 95% based on the minimum capital; Property insurance companies and reinsurance companies with total assets of less than 10 billion yuan, as well as life insurance companies with total assets of less than 50 billion yuan, shall have a solvency adequacy ratio calculated at a minimum capital of 90%.
The second is to guide insurance companies to return to the source of protection. The proportion of future earnings from insurance policies with a remaining maturity of more than 10 years to be included in core capital will be increased from no more than 35% to no more than 40%, encouraging insurance companies to develop long-term protection products. If the arithmetic mean of the deviation rate of the retroactive reserve for all non life insurance businesses after reinsurance and the arithmetic mean of the deviation rate of the retroactive reserve for outstanding claims calculated by the property insurance company at the end of the most recent quarter is less than or equal to -5%, the minimum capital requirement for premium risk and reserve risk will be reduced by 5%. In the non basic assets invested by insurance companies, if the underlying assets are aimed at recovering principal and fixed interest, and the transaction structure is within three levels or less, they should be included in the minimum capital measurement range of interest rate risk to promote insurance companies to strengthen asset liability matching management.
The third is to guide insurance companies to support the stable and healthy development of the capital market. For insurance companies investing in constituent stocks of the Shanghai and Shenzhen 300 Index, the risk factor has been adjusted from 0.35 to 0.3; The risk factor for investing in ordinary stocks listed on the Science and Technology Innovation Board has been adjusted from 0.45 to 0.4. For investment in infrastructure securities investment funds that have not been penetrated, the risk factor is adjusted from 0.6 to 0.5. Require insurance companies to strengthen long-term assessment of investment returns and publicly disclose the average investment return rate and comprehensive investment return rate over the past three years in the summary of the quarterly solvency report.
The fourth is to guide insurance companies to support technological innovation. The equity of unlisted companies in national strategic emerging industries invested by insurance companies is assigned a risk factor of 0.4. The technology insurance operated by insurance companies is subject to the minimum capital measurement of property insurance risk factors, and the solvency adequacy ratio is calculated at 90%.
The notice shall be implemented from the date of its publication. The State Administration for Financial Supervision and Administration will strengthen institutional supervision, behavioral supervision, functional supervision, penetrating supervision, and continuous supervision in accordance with the requirements of the Party Central Committee on institutional reform, guide insurance companies to conscientiously implement the Notice, strengthen solvency management, and further improve the quality and efficiency of serving the real economy and the people.
