Internet insurance compliance can go far

With the landing of new regulations on Internet insurance supervision, a number of "net red" products have entered the countdown to the removal of shelves. Just a week ago, a number of insurance companies, such as Xintai Life and Fubon Property & Casualty, announced that they would suspend their Internet insurance business from January 1, 2022, and the resumption time would be announced separately. At the same time, the old problem of "speculation and suspension of sale" in the insurance industry has made a comeback, and slogans such as "no more buying" are "about to be removed", "and buy and cherish" appear frequently in the public accounts of insurance brokers and financial big V.

It should be clear that the reasons for the removal of Internet insurance products this time are manifold. Some are because the solvency of insurance companies and comprehensive risk ratings do not meet regulatory requirements, and only companies that meet regulatory requirements can continue to sell Internet insurance products under the new regulations; some are because the product design does not meet the regulatory norms and need to be rectified before they can be re-listed; some are because under the new regulations, participating insurance, universal insurance and investment-linked insurance products can no longer be sold on the Internet channels, and can only be removed from the shelves and suspended.

In recent years, the development of Internet insurance can be described as a daily development, but at the same time, forced tying, inducing consumption, and abnormally high expense rates have become problems that need to be treated urgently. The new regulatory rules focus on supporting insurance companies that meet solvency, have a good comprehensive rating, have sufficient reserves and are qualified for corporate governance to sell Internet products. Compared with small and medium-sized insurance companies, large insurance companies such as Ping An and Taikang do have more advantages in channels and agent teams. In the long run, small and medium-sized insurance companies have turned around, and with the improvement of corporate governance capabilities and regulatory data, there is still great hope for achieving "overtaking in curves". From the perspective of internal competition among small and medium-sized insurance companies, abandoning the price war and abnormally high expense rates and turning to products and services are beneficial to the sustainable development of the industry without harm.

Previously, although the products sold on the Internet were nothing more than accident insurance, health insurance, term life insurance, annuity insurance, but "warm baby", "super Mary", "big protector" and other various name patterns were renovated and emerged in an endless stream, so that consumers were dazzled and stupid. After rectification according to the requirements of the new regulations, not only the name should be uniformly titled with the word "Internet", but also the sales behavior should be traced back, which standardizes the product innovation and sales channels of insurance companies at the source, and can avoid misleading sales to the greatest extent.

For consumers, the face of a large number of Internet products needs to be rationally viewed. First of all, don't be affected by "speculation and suspension", and don't worry about the products you want to buy. With the development of the insurance industry, the overall supply of insurance products will only become more and more abundant. At the same time, some products have sales channels online and offline, and even if they are suspended online, they can also be purchased through offline channels. Secondly, the payment period of major illness insurance, term life insurance and other products is long, and consumers need to decide to purchase based on their own financial situation and insurance allocation. If you buy in a hurry and find that you cannot meet your needs and then surrender the policy, you may suffer greater losses. Third, for annuity insurance and participating insurance products, although there is an agreed interest rate in the contract, it should be noted that the liquidity and liquidity of such products are poor, and there are handling fees for the inflow and outflow of funds. If you buy, you need to consider your cash flow situation and risk appetite, after all, the main function of insurance products is protection, and there are more options on the investment side.

There are tens of millions of financial roads, and risk control compliance is the first. For Internet insurance, after experiencing budding and growth, it is more necessary to choose a high position and a wide line in order to develop steadily and go far. (Author: Yu Yong)

Source: Economic Daily