Multi-site relay to delineate the red line of "submission of names" To standardize chaos and promote high-quality development

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In the past two months, regulatory authorities in many places have successively taken action to standardize the red line of self-insured and mutual insurance management.

On October 22, following the introduction of relevant policies by the Beijing Banking and Insurance Regulatory Bureau and the Shandong Banking and Insurance Regulatory Bureau, the Chongqing Banking and Insurance Regulatory Bureau also issued the Notice on Regulating the Management of Captive and Mutual Insurance Parts of Life Insurance Sales Personnel.

Compared with the policies previously issued by the Beijing and Shandong Banking and Insurance Regulatory Bureaus, Chongqing's Notice is more stringent and meticulous.

The rigors mainly include two points:

The first involves the promotion and evaluation of agents and the relevant aspects of the Basic Law. The Notice stipulates that insurance institutions shall not purchase insurance products as a condition for agents to enter, regularize or promote; nor shall captive and mutual insurance be included in any form of performance appraisal and business incentives and competition schemes at all levels; and the direct commission level of captive and mutual insurance shall not be better than that of other customer insurance policies.

The second involves sales processes, risk control management and accountability. The Notice requires that insurance institutions should strengthen the retrospective management of the sales of captive and mutual insurance parts, and make audio and video recordings of key links in sales; strictly control the authenticity of premium data, and severely crack down on all kinds of data fraud; they should also improve the complaint and report handling system for self-insurance and mutual insurance pieces, and severely crack down on organized insurance fraud.

The meticulousness of the Notice is reflected in the requirement that insurance institutions should establish and improve the management system of self-insured and mutual insurance parts, and the process and coverage include but are not limited to the rights and obligations of relevant insurance policies, the application approval process, performance management, risk monitoring, dispute handling, and liability pursuit. At the same time, the Notice requires insurance institutions to strengthen system construction, improve control processes, and record sales information truthfully and completely in insurance policies and core business systems.

The above requirements basically block the soil on which self-insured parts and mutual insurance parts depend for survival and development from all links, which can be seen in the good intentions of relevant regulatory departments.

Further reading:

"If you want to sink into the boils, you still need strong drugs, and the supervision fires the first shot to ban the "name certificate""

"'Performance Master' Self-Detonation Industry Chaos , Why "Suicide Insurance Policy" Has Been Repeatedly Banned"

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For a long time, due to the long-term proliferation and prohibition of captive and mutual insurance parts, whether insurance institutions are recruiting staff or recruiting customers is a question that has aroused deep thinking, is worth exploring, and slightly ridiculed.

In the past, there are indeed many people in the industry, out of their own protection needs will also buy themselves or buy some high-value protection of life insurance for their families, which is the pursuit of more comprehensive guarantees, there is no excessive black dot behavior, due to the existence of interests, breeding a gray arbitrage behavior, that is, the agent buys the insurance policy, first earns the commission, and then fully surrenders, killing two birds with one stone, and quickly developing and growing in the industry, and has even become the industry's default unspoken rule.

The proliferation of captive and mutually insured parts has caused a series of problems, mainly including

1. Misleading consumers

Agents can do whatever it takes to get commissions and performance, and to facilitate transactions. Misleading is already a very polite term, which is essentially commercial deception. For example, insufficient insurance information, deliberate concealment of underwriting information, induce customers, only prompt benefits, do not inform risks, and even worse, illegal collection of customer information, telephone, text messages to harass customers, unscrupulously corrupt the image of the industry.

2. Misleading agents

Due to the huge arbitrage space of captive insurance pieces and mutual insurance pieces, insurance institutions often talk about the industry background, job conditions, and development prospects when recruiting insurance agents, and only say good, not bad. Interview training brainwashing again, in the case of incomplete tasks, let the agent find the insurance policy of the market for reason to complete the task (killed), and if it is not possible, he will pay for the "suicide" insurance policy.

3. Claims are wide in and out, destroying the reputation of the industry

Insurance is a highly sophisticated and subdivided industry, in which the technical content is very high, especially personal insurance, which can almost run through the entire life cycle of consumers, rather than a one-time consumption behavior that ends after the sale is completed. The main reason for the poor image of the insurance industry, and even misunderstood as a trick to deceive people, is a large part of the reason is because many agents have made the reputation of the industry bad.

The specific way to do bad is to use the information asymmetry with consumers, through sales misleading (deception), so that insurance consumption is wide in and out, everything is good when buying, no risk notification, no clause explanation, no exclusion introduction, to the customer that is a ceiling, I hope that this product should only be in the sky, you can buy it is completely off my luck, not only cheap but also what to lose. However, in the end, when it comes to the claims process, there are only two things left: this is not paid, and that is not paid.

Captive pieces further amplify this problem, because the agent to buy captive pieces of this behavior, often only to promote performance, or even just to get the commission, did not have a good understanding of the product information, and their own actual situation and product matching, many agents even hold the commission on the idea of leaving the job to buy self-insurance parts, not out of risk when it is good to say, really encountered insurance, because the homework in advance is not done enough, the pit inside is appropriate. These shedding, resentful agents have a high potential to demonize the industry as a whole and further ruin the industry's own reputation and credibility.

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Dazhi believes that self-insurance parts are a double-edged sword, and the self-insurance parts under the analysis of reasonable needs and the protection plan provided to themselves are also within a reasonable range, which is ok, and even for the purchase of certain commercial interest needs, under the premise of not endangering society, it is also forgivable.

However, the current chaos of captive and mutual insurance parts in the industry, in the case of multiple internal rolls of insurance companies, agents and customers, has been seriously degenerated and deformed, and has evolved into a vicious, harmful, and blind "killing chickens and taking eggs" interest pursuit that disrupts the development of the industry, which has to be standardized management.

In the past few months, the regulatory authorities in the three places have begun to regulate the relevant chaos, and fired the first three shots to rectify the chaos of self-insured parts and mutual insurance parts, which is naturally a good thing for the industry.

In the short term, this kind of standardized rectification may make insurance institutions "unsuitable", and may even cause insurance companies to "cliff-like" decline in premium income, affecting performance, but in the long run, Dazhi believes that it can still reduce the occurrence of malicious surrender cases, reduce the operational risks of insurance institutions, improve the quality of insurance sales personnel, improve the image of the insurance industry, and promote the high-quality development of the insurance industry.