New Internet Insurance Regulations: What are the new changes in the final implementation of the second consultation

With the continuous in-depth application of Internet technology in the insurance industry, Internet insurance business, as a new form of insurance sales and services, has profoundly affected the insurance industry and insurance supervision. The rapid development of the Internet insurance business has also exposed some problems and hidden risks, posing challenges to the industry and supervision.

On December 14, the China Banking and Insurance Regulatory Commission issued and implemented the Measures for the Supervision of Internet Insurance Business. Previously, from September 28 to October 28, 2020, the China Banking and Insurance Regulatory Commission solicited public opinions on the “Measures for the Supervision of Internet Insurance Business (Draft for Comment)”.

The Measures for the Supervision of Internet Insurance Business has 5 chapters and 83 articles, including general provisions, basic business rules, special business rules, supervision and management, and supplementary provisions. The key normative contents include: clarifying the nature of Internet insurance business, clarifying system application and connection policies; specifying Internet insurance business operation requirements, strengthening the principle of licensed operation, defining the self-operated network platform of licensed institutions, stipulating the operating conditions of licensed institutions, and clarifying the operating conditions of licensed institutions. It regulates insurance marketing and publicity behaviors, and stipulates management requirements and business behavior standards; regulates after-sales service throughout the whole process to improve consumer experience; supervises and regulates according to the classification of business entities. , insurance companies, insurance intermediaries, and Internet companies for the insurance agency business, respectively stipulate “special business rules”; innovate and improve regulatory policies and institutional measures, and make transitional arrangements for policy implementation.

In the next step, the China Banking and Insurance Regulatory Commission will continue to closely follow and study the new situation and new issues in the field of Internet insurance, extensively listen to opinions and suggestions from all quarters, issue supporting policies in a timely manner, gradually build a three-dimensional Internet insurance system, and promote the sustainable and healthy development of Internet insurance.

What is the background of the revision of the Measures, what are the principles followed by the revision, and what are the main contents?

With the continuous in-depth application of technologies such as the Internet in the insurance industry, the Internet insurance business, as a new form of insurance sales and services, has profoundly affected the insurance industry and insurance supervision. The rapid development of the Internet insurance business has also exposed some problems and hidden risks, posing challenges to the industry and supervision. In order to regulate the Internet insurance business, effectively prevent risks, protect the legitimate rights and interests of consumers, and improve the insurance industry’s level of serving the real economy and the people’s livelihood, the China Banking and Insurance Regulatory Commission has revised and promulgated the Measures.

The revision of the “Measures” resolutely implements the spirit of the central government and the decision-making and deployment, and pays attention to the following working principles: first, problem-oriented, and resolutely implement various risk prevention measures; Practice, make the regulatory system pragmatic and effective, and improve operability; fourth, be prudent and inclusive, and guide the healthy and compliant growth of new business formats.

The “Measures” consists of 5 chapters and 83 articles, including general provisions, basic business rules, special business rules, supervision and management and supplementary provisions. The key normative contents include: first, clarifying the nature of Internet insurance business, clarifying system application and connection policies; second, specifying the operating requirements of Internet insurance business, strengthening the principle of licensed operation, defining the self-operated network platform of licensed institutions, and specifying the operating conditions of licensed institutions , clarifying the prohibited behavior of non-licensed institutions; the third is to regulate Internet insurance marketing and publicity, and to stipulate management requirements and business behavior standards; the fourth is to standardize the whole process of Internet insurance after-sales service and improve the consumer experience; On the basis of “Basic Business Rules”, “special business rules” are respectively stipulated for Internet insurance companies, insurance companies, insurance intermediaries, and Internet companies’ insurance agency business; the sixth is to innovate and improve regulatory policies and institutional measures, and implement transitional policies. arrange.

What is the definition of Internet insurance business, and what are the scope of application of the Measures? For the integration of online and offline business, how to connect and apply the regulatory rules?

According to the nature and development law of Internet insurance business, the “Measures” clarified the definition of “Internet insurance business”, that is, “insurance institutions rely on the Internet to conclude insurance contracts and provide insurance services. Insurance business activities.”

The “Measures” stipulate that insurance business that meets the following three conditions at the same time is Internet insurance business: first, insurance institutions sell insurance products or provide insurance brokerage services through the Internet and self-service terminal equipment; second, consumers can self-operate through insurance institutions The sales page of the online platform can independently understand product information; the third is that consumers can independently complete the insurance behavior.

The “Measures” stipulate the policy connection and application method for the situation of channel integration: if an insurance applicant completes the insurance application through the insurance product insurance link provided by the insurance institution and its practitioners, it shall satisfy both the “Measures” and the relevant regulatory provisions of the channel to which it belongs. Where online and offline integration of insurance sales or insurance brokerage business is involved, the online and offline business activities shall be subject to online and offline regulatory rules respectively; if the regulatory rules cannot be applied separately, both online and offline regulatory rules shall apply. If they are inconsistent, they should adhere to the principles of compliant operation and the benefit of consumers.

In addition, insurance institutions and their practitioners conduct offline sales in the name of Internet insurance business, including face-to-face sales by practitioners using mobile business development tools, and online entry after practitioners collect insurance information. Provisions, this “Measures” does not apply.

Which institutions can carry out Internet insurance business? What conditions should insurance institutions meet for conducting Internet insurance business? Do I need to apply for a business license or file a business record?

The “Measures” stipulate that Internet insurance business shall be carried out by insurance institutions established according to law, and other institutions and individuals shall not carry out Internet insurance business. When an insurance institution conducts Internet insurance business, it shall not exceed the business scope specified in the institution’s license (recording form). Insurance institutions referred to in the Measures include insurance companies (including mutual insurance organizations and Internet insurance companies) and insurance intermediaries. Insurance intermediaries include insurance agents (excluding personal insurance agents), insurance brokers, and insurance adjusters. Insurance agents (excluding individual insurance agents) as mentioned in the Measures include professional insurance agencies, bank-type insurance agencies and Internet companies that have obtained insurance agency business licenses in accordance with the law.

The “Measures” stipulate the conditions that insurance institutions and their self-operated online platforms should have, including website filing, information systems, security protection, graded protection, marketing models, management systems, system construction, and regulatory evaluation.

Insurance institutions can carry out Internet insurance business as long as they meet the conditions stipulated in the Measures, and do not need to apply for business licenses or file business records. Those who do not meet the prescribed conditions shall not carry out Internet insurance business. Those that have already carried out shall immediately stop selling insurance products or providing insurance brokerage services through the Internet. After rectification, those meeting the prescribed conditions can resume the relevant Internet insurance business. In addition, the “Measures” strengthen the supervision during and after the event, and make provisions in terms of business scope, insurance restrictions, regulatory measures, and legal responsibilities.

Can banks operate internet insurance business and what are the requirements?

According to the “Measures”, banks and insurance agencies can operate Internet insurance business. In addition to meeting the general requirements for insurance institutions in the Measures, a concurrent banking and insurance agency operating Internet insurance business must also meet specific requirements for banks: first, they should sell through Electronic banking platforms; second, they should meet the requirements of banks. The China Insurance Regulatory Commission’s regulatory provisions on the business area of ​​e-banking; thirdly, the Internet insurance business shall not be entrusted to other institutions or individuals.

What are the requirements for the insurance agency business of Internet companies?

The insurance agency business of Internet companies must meet the general requirements of the Measures for insurance institutions. In addition, the “Measures” also strengthen the following requirements for the insurance agency business of Internet companies: First, it is required to be licensed to operate, and the agency insurance business of Internet companies should obtain a license to operate insurance agency business; second, it should have strong compliance management capabilities and scenarios. The third is to realize the independent operation of the business, and to achieve business isolation and risk isolation from the main business; the fourth is to not entrust the Internet insurance business to other institutions or individuals; the fifth is to strengthen the protection of consumer rights and interests , to establish a rapid response mechanism for after-sales service.

In practice, there are situations in which non-insurance institutions play side balls and are suspected of illegally operating Internet insurance business. What are the provisions of the Measures?

The “Measures” stipulate that Internet insurance business shall be carried out by insurance institutions established according to law, and other institutions and individuals shall not carry out Internet insurance business. The “Measures” clearly stipulate the behavior boundaries of non-insurance institutions, stipulating that non-insurance institutions are not allowed to carry out Internet insurance business, including but not limited to the following business activities: first, to provide insurance product consulting services; second, to compare insurance products, premium trial calculation , price comparison; the third is to design insurance plans for the insured; the fourth is to handle insurance procedures; the fifth is to collect insurance premiums.

How does the “Measures” regulate self-operated online platforms, and what is the significance of strictly defining self-operated online platforms?

In order to effectively implement the principle of licensed operation, the “Measures” make a strict and clear definition of self-operated network platform: self-operated network platform refers to a network that is independently operated and enjoys complete data rights established by insurance institutions in order to operate Internet insurance business. platform. Only the network platform established by the head office of an insurance institution is a self-operated network platform. The network platform established by the branch of an insurance institution and a non-insurance institution with equity, personnel and other related relationships with the insurance institution is not a self-operated network platform and shall not operate the Internet insurance business.

The self-operated network platform is the only carrier for insurance institutions to operate Internet insurance business, and it is also the main starting point for strengthening supervision. The “Measures” strictly define self-operated online platforms, and require that customer insurance application pages must belong to licensed institutions’ self-operated online platforms. The main purpose is to comprehensively strengthen the licensed business philosophy and consolidate the main responsibility of insurance institutions. In addition, it will also help to solve the problem of insurance institutions in obtaining customer information, help prevent the interception of premiums, balance market power, control channel costs, help reduce misleading sales, promote consumer education, and ensure the long-term stable development of the industry.

Can insurance agency practitioners engage in Internet insurance business? Regarding Internet insurance marketing and publicity, how does the Measures provide for insurance institutions and their practitioners?

At present, employees of insurance institutions generally participate in Internet insurance marketing and publicity through WeChat Moments, official accounts, WeChat groups, Weibo, short videos, and live broadcasts. The Measures stipulate that employees of insurance institutions may carry out Internet insurance marketing and publicity after being authorized by their subordinate institutions. The “Measures” strengthen the main responsibility of insurance institutions, and make targeted and strict regulations for practitioners to carry out Internet insurance marketing and publicity.

The “Measures” strengthen the management responsibilities of licensed institutions and put forward relevant requirements: First, insurance institutions should establish a series of management systems for Internet insurance marketing and publicity; The third is that insurance institutions shall conduct practice registration and management of practitioners in accordance with relevant regulatory provisions, and identify their qualifications for engaging in Internet insurance business; fourth, insurance institutions and their practitioners shall prudently send Internet insurance product information to consumers. In addition, the “Measures” require that Internet insurance marketing and publicity activities should comply with the “Advertising Law”, financial marketing publicity and relevant regulations of the China Banking and Insurance Regulatory Commission.

Regarding the marketing and publicity of practitioners, the “Measures” clarifies the specific requirements: First, practitioners should carry out Internet insurance marketing and publicity within the scope authorized by insurance institutions; Practitioners shall indicate the full name of the insurance institution to which they belong, personal name, practice certificate number and other information in a prominent position on the marketing promotion page.

Regarding the content of marketing and publicity, the “Measures” also make targeted provisions: First, the conduct of marketing and publicity activities should follow the principles of being clear, accurate, easy to understand, and in line with social order and good customs; second, the content of marketing and publicity should be consistent with the terms of the insurance contract; Yes, the marketing promotion page should accurately describe the main functions and features of the insurance product.

What insurance products can insurance institutions sell over the Internet? Are there any restrictions on the area of ​​operation?

Internet insurance is developing rapidly, and the regulatory system needs to reserve policy space for future development. Articles 52 and 58 of the “Measures” stipulate principles for insurance products and business areas sold through the Internet. The China Banking and Insurance Regulatory Commission will According to the development stage of the Internet insurance business and the service guarantee needs of different insurance products, the scope of insurance types and relevant conditions for insurance institutions to sell insurance products through the Internet shall be separately stipulated. The China Banking and Insurance Regulatory Commission will issue relevant policies in a timely manner to ensure the effective connection of policies.

What are the requirements of the Measures for after-sales service of Internet insurance business?

The “Measures” put forward operating requirements and service standards for the whole process of after-sales service of Internet insurance business: firstly, insurance institutions are required to allocate sufficient service resources to ensure follow-up service capabilities commensurate with product characteristics and business scale; secondly, insurance institutions are required to fully Disclose information, protect consumers’ right to know, and inform consumers whether the whole process of after-sales service can be realized online; the third is to comprehensively standardize after-sales service, and put forward service standards for the whole process of correction, preservation, surrender, claims and complaint handling, etc. Improve the consumer experience.

How does the China Banking Regulatory Commission and its dispatched agencies divide the supervision of Internet insurance business?

The “Measures” stipulate that the China Banking and Insurance Regulatory Commission is responsible for the formulation of the Internet insurance business supervision system, and the China Banking and Insurance Regulatory Commission and its local offices implement the daily monitoring and supervision of the Internet insurance business in accordance with the supervision division of labor for insurance institutions. Complaints or reports on Internet insurance business shall be handled by the China Banking and Insurance Regulatory Bureau in the place where the complainant or the whistleblower habitually resides in accordance with relevant regulations. The bureau of the China Banking Regulatory Commission may authorize the local offices at lower levels to carry out supervision work related to the Internet insurance business.

One of the characteristics of Internet insurance business is that the operation breaks through geographical restrictions, and it is a very common phenomenon that the usual place of residence of consumers and the location of insurance institutions are inconsistent. For complaints or reports of Internet insurance business, the “Measures” make it clear that the bureau of the China Banking and Insurance Regulatory Commission in the place where the complainant or the whistleblower habitually resides is responsible, so that complaints and reports can be dealt with in the first time, and it is convenient for consumers to communicate with the regulatory agency. Protect the rights and interests of consumers, and at the same time force insurance institutions to improve products and services by increasing the cost of violations of laws and regulations. In addition, compared with the traditional insurance business, the Internet insurance business can more easily realize the traceability of sales behavior by means of the version management, system log, hierarchical storage and other functions of the information system, which also provides convenience for the regulatory authorities to investigate and collect evidence in different places.

What stipulations does the Measures have on preventing and defusing risks?

The Internet insurance business has a wide range of stakeholders, many models, and complex problems. While promoting the development of the industry, it brings new hidden risks and new challenges to supervision. The “Measures” put the prevention and mitigation of risks in the first place: first, adhere to the principle of “licensed institutions and personnel with certificates”, clearly define the rights and obligations of licensed institutions, compact the main responsibilities, and clarify the non-insurance institutions in the form of a negative list. The second is to clarify the definition of self-operated online platforms, requiring that insurance application pages must belong to the self-operated online platforms of insurance institutions; the third is to strengthen information disclosure requirements to protect consumers’ right to know; the fourth is to strengthen network security and customer information protection requirements; Fifth, establish a supervision information system, strengthen information reporting, and improve the timeliness, effectiveness and pertinence of supervision.

What are the provisions of the Measures on the protection of consumer rights and interests?

The protection of consumer rights and interests is the starting point and end point of financial and insurance supervision, and it is also the foundation for the healthy development of Internet insurance business. The revision of the Measures implements the concept of protecting the rights and interests of consumers throughout the process: First, it stipulates that Internet insurance sales or insurance brokerage activities cannot be carried out if the risks cannot be effectively controlled and the quality of after-sales service cannot be guaranteed; second, the requirements for information disclosure should be strengthened and information disclosure should be increased. The third is to require that the insurance application page must belong to the self-operated online platform of the insurance institution to ensure transaction security; the fourth is to require the insurance institution to establish a full-process service system for pre-sale, in-sale and after-sale services to improve consumer satisfaction; The fifth is to require insurance institutions to establish a customer information protection system, and to build a customer information protection system covering the entire life cycle to prevent information leakage. The local bureau of the China Banking and Insurance Regulatory Commission shall deal with it in accordance with relevant regulations.

What are the provisions of the Measures on protecting innovation in Internet insurance?

Internet insurance is not only a sales channel, but also a business mode and service form. The “Measures” encourage the integration of insurance with new technologies such as the Internet, big data, and blockchain on the basis of standardizing operations, preventing risks, and drawing a clear red line. Internet insurance serves the real economy and people’s livelihood at a higher level: first, encourage the development of insurance products that meet the characteristics of the Internet economy and serve diversified security needs, so that insurance can be reasonably integrated with scenarios and technologies; second, encourage the expansion of data information sources and the use of data Mining, machine learning and other technologies improve the accuracy of risk identification and disposal of insurance business; third, support insurance institutions to improve the level of transparency in sales and services, and provide consumers with online evaluation functions on self-operated network platforms to provide reference for consumers; The fourth is to support insurance intermediaries to carry out services such as risk management, health management, case investigation, disaster prevention and reduction based on innovative data applications; the fifth is to promote regulatory authorities to innovate regulatory concepts and methods on the basis of effectively preventing market risks, and establish and improve adaptive A new regulatory mechanism for the characteristics of Internet insurance.

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