CFIC Introduction
The industry believes that the "Guiding Opinions" put forward the key areas and key links of green insurance support, which can better guide insurance companies to check and fill gaps, innovate and develop exclusive green insurance products for the development of green industries, and promote the improvement of the green insurance product system and supply-side reform.
Original title: [Xinhua Interpretation] The new regulations promote the high-quality development of green insurance and help the comprehensive green transformation of the economy and society
Recently, the State Administration of Financial Supervision issued the "Guiding Opinions on Promoting the High-quality Development of Green Insurance" (hereinafter referred to as the "Guiding Opinions"), aiming to give full play to the important role of insurance in promoting the comprehensive green transformation of economic and social development, and actively and steadily contribute to carbon peak and carbon neutrality. The industry believes that green insurance can give full play to the role of risk reduction and capital guidance to promote the comprehensive green transformation of the economy and society.
By 2027, the green insurance policy support system will be relatively perfect, and the service system will be initially established
In October 2023, the Central Financial Work Conference proposed to do a good job in green finance and other five major articles. As an important part of green finance, green insurance can exert efforts from both liabilities and assets at the same time, give full play to the role of loss compensation, risk reduction, and capital guidance, and help the comprehensive green transformation of the economy and society.
In 2022, the former China Banking and Insurance Regulatory Commission (CBIRC) issued the Notice on Printing and Distributing the Statistical System for Green Insurance Business, clarifying the definition of green insurance for the first time and establishing a statistical system for green insurance business, making green insurance statistically statistically and monitorable, establishing basic standards for evaluation, and laying a solid foundation for the development of green insurance. In September 2023, the Insurance Association of China (IAC) issued the Guidelines for the Classification of Green Insurance (2023 Edition), which is a systematic achievement of the Insurance Association to continue to promote green insurance research, and is also the world's first industry self-discipline standard that comprehensively covers green insurance products, green investment of insurance funds, and green operation of insurance companies.
"However, through the survey, we found that market players' understanding of the principles, objectives and tasks of green insurance development still needs to be further unified, and policy guidance and support are urgently needed in promoting development direction, incentive and restraint policies, supervision and evaluation systems, and information sharing mechanisms. The relevant person in charge of the State Administration of Financial Supervision said that since 2023, the State Administration of Financial Supervision has carried out extensive research through on-site inspections and symposiums, not only fully soliciting opinions within the industry, but also actively communicating with relevant ministries and commissions, and listening to the opinions of industry enterprises and experts and scholars, and finally researching and forming the "Guiding Opinions". From the perspective of the General Administration, the "Guiding Opinions" intend to strengthen overall guidance, optimize policy means, form a development orientation, promote the development of green insurance to further deepen and solidify, and better serve the real economy and social livelihood.
The "Guiding Opinions" issued this time clarify the development goals in three years and six years: by 2027, the green insurance policy support system will be relatively perfect, the service system will be initially established, the risk reduction service and management mechanism will be optimized, the product and service innovation ability will be enhanced, and a number of typical demonstration green insurance service models will be formed, and the growth rate of green insurance risk protection and green investment of insurance funds will be higher than the overall growth rate of the industry, and the role in promoting the green transformation of the economy and society will be enhanced.
The insurance industry promotes the green transformation and development of the economy and society in an all-round way
The "Guiding Opinions" put forward 9 key tasks, including improving the ability of society to cope with climate change, ensuring green and low-carbon technological innovation, promoting green and low-carbon energy transformation, promoting the consolidation and improvement of carbon sink capacity, supporting green and low-carbon national actions, improving the level of environmental pollution prevention and control of enterprises, serving the development of green and low-carbon and green manufacturing projects in the industrial field, promoting energy conservation, carbon reduction and efficiency improvement in urban and rural construction, and helping the green and low-carbon development of transportation.
The industry believes that the "Guiding Opinions" put forward the key areas and key links of green insurance support, which can better guide insurance companies to check and fill gaps, innovate and develop exclusive green insurance products for the development of green industries, and promote the improvement of the green insurance product system and supply-side reform.
In recent years, the insurance industry in mainland China has promoted the green transformation and development of the economy and society in an all-round way. The relevant person in charge of Chinese Life Insurance Company said that in order to implement the green finance development strategy, the company has formulated the "2023 ESG and Green Finance Work Plan", which implements green finance work in green sales, green insurance, green investment, green operation, green office and green life, and is committed to synergistically promoting carbon reduction, pollution reduction, green expansion and growth, promoting ecological priority, conservation and intensive, green and low-carbon development, continuously improving its ESG performance, and helping the development of green finance.
"In order to meet the needs of financial services for the green transformation of the social economy, Chinese Life Insurance Company continues to release the efficiency of green finance, inject financial 'living water' into the green economy, and promote the high-quality development of related industries. The above-mentioned person in charge said that the company will provide 603.165 billion yuan of insurance protection for green industry customers in 2023. At the same time, the company has continuously improved the construction of the ESG/green investment system, aligned with the internationally accepted ESG investment principles, built and improved the company's green financial management system, and by the end of 2023, the scale of green investment exceeded 460 billion yuan, helping to achieve the "double carbon" goal.
From the perspective of the insurance industry itself, Huang Baoxin, deputy general manager of Ping An Group, said that the green finance business of the insurance industry as commonly understood mainly starts from both the liabilities and assets, including green insurance products and green investment of insurance funds. The ability of insurance companies to manage their operational carbon emissions will be improved in tandem with their green operation capabilities.
Yu Hua, Secretary of the Party Committee and President of the Insurance Association, previously pointed out that in the future, in terms of insurance protection, it is necessary to strengthen the innovation of insurance products and services, continuously improve the scope of green insurance products, increase the types of green insurance products, improve service quality, and broaden the service field. In terms of green investment, it is necessary to continuously optimize the allocation of funds, innovate investment tools, integrate the concept of green development into the decision-making and activities of the use of insurance funds, actively support the construction of a clean and low-carbon energy system, and focus on strengthening financial support for key green industries. In terms of green operations, we will implement the green concept in all processes and fields, accelerate the online and paperless operation processes of insurance companies, vigorously promote energy conservation and emission reduction, strive to achieve low-carbon operations, and fully apply artificial intelligence, blockchain, cloud computing and other scientific and technological means to achieve low-carbon transformation of business models.
Source of this article: Xinhua Finance
Author: Zhang Siwen
WeChat editor: Wang Ziqing
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