Commercial Endowment Insurance Should Provide Strong Support for the Elderly

Commercial endowment insurance should provide strong support for the elderly

-- Interview with Huang Hong, Vice Chairman of CIRC

Beijing, July 4 (Xinhua) -- Tan Moxiao The General Office of the State Council recently issued several Opinions on Accelerating the development of commercial pension insurance, which is an important document to improve the social pension security system and give play to the role of commercial pension insurance in helping the elderly provide for themselves. Huang Hong, vice chairman of the Insurance Regulatory Commission (CIRC), gave a detailed interpretation of the opinion in an interview with Xinhua News Agency.

An important part of the pension security system

Huang Hong said that from an international perspective, in the construction of the pension security system, the government, enterprises and individuals are generally adopted to shoulder the responsibility of the pension system, which is often referred to as the "three-pillar" system. The first pillar is the basic endowment insurance, which is initiated by the government and bears the responsibility; the second pillar is the enterprise annuity, which is generally initiated by enterprises and paid jointly by enterprises and individuals; the third pillar is the fully accumulative pension plan voluntarily established by individuals, and the commercial endowment insurance is an important part.

He said that in China's "three-pillar" pension system, the goal of "full coverage of basic pension insurance" has been basically achieved, but the development of the second and third pillar is relatively lagging behind, especially the supply of commercial pension insurance products and services is insufficient, the coverage is very small, it is difficult to meet the needs of the public pension security.

What are the uses of commercial insurance institutions? Huang Hong believes that commercial insurance institutions should develop commercial pension insurance with high security, strong security, and meet the requirements of long-term or lifelong drawing, and provide products and services such as enterprise (occupational) pension plans, and orderly participate in the investment and operation of basic pension fund and national social security fund. The regulatory authorities will guide the development of commercial old-age insurance such as accidental injuries to the elderly, long-term care and housing reverse mortgage, and gradually establish a system of old-age care services such as long-term care, combined health care and medical care.

'Commercial pension insurance should play a vital role in improving the multi-tiered pension security system,' he said.

Preparations for the trial of tax-deferred old-age insurance were basically completed

Individual tax-deferred commercial endowment insurance means that the policyholder who buys commercial endowment insurance is allowed to pay the premium before the individual tax, and then pay the individual tax when the insurance benefit is received in the future. This is a tax preference that reduces the current tax burden of the policyholder.

This tax break has been called for by the industry for years. According to the guideline, preferential tax policies for the state to support the development of modern insurance and old-age services will be implemented, and VAT will be exempted from the income of personal insurance premiums of commercial insurance institutions for more than one year. By the end of 2017, we will launch trials of tax-deferred commercial endowment insurance for individuals.

For the industry concerns about product design issues, Huang Hong said, to adhere to the "income guarantee, long-term lock, lifetime receipt, mutual aid" design principles, products to be transparent, optional, people insurance fees, product income, insurance company charges and other information can be checked at any time, to prevent misleading sales.

"The insurance industry has basically done the preparatory work for the trial of tax-deferred old-age insurance." 'In terms of regulation, there is already a preliminary framework,' Mr. Huang said. In terms of model clauses, there is a preliminary model clause; In terms of information technology guarantee, China Insurance Information Technology Management Co., Ltd. has developed an information system for the tax-deferred old-age insurance pilot program.

He said that once the pilot policy is introduced, the insurance industry will be able to more effectively connect the policy implementation.

Ensure the safety of capital operation

The guideline is clear, promote the safe and sound operation of commercial endowment insurance funds. Adhere to the principle of controllable risk and sustainable business, give full play to the long-term investment advantages of commercial endowment insurance funds, participate in the implementation of major national strategies in a steady and orderly manner, participate in the construction of major projects and livelihood projects, promote the coordinated development of commercial endowment insurance funds and the capital market, and prudently carry out overseas investment business.

As the "pension money" of the common people, the time span of commercial endowment insurance payment and receipt is relatively long. How to ensure the safety of the fund operation and realize the value preservation and increase?

"We will start with strengthening qualification management and set a high threshold for entry." 'If an insurance institution wants to run a commercial endowment insurance, it first needs to see whether its actuarial technology and talent reserve meet the requirements,' Mr. Huang said. 'Investment ability, risk control ability, solvency, and shareholders' ability to increase capital sustainably are also particularly important. The CIRC will make a comprehensive assessment to ensure that the qualification is excellent.'

Qualification is a stepping stone. For insurance institutions entering the commercial endowment insurance market, no matter in product development or capital utilization, they cannot break through the market rules, and the construction of regulatory system is essential.

'We should grasp the characteristics of commercial endowment insurance products as quasi-public products, ensure the steady operation of commercial endowment insurance funds, and gradually form a set of rules and regulations that are different from ordinary insurance funds,' Huang Hong said. The CIRC will strive to reflect the requirements of safe and sound operation of commercial endowment insurance funds in the amendment of the Insurance Law, and improve the current rules on the use of insurance funds, and gradually establish a regulatory evaluation index system for the use of commercial endowment insurance funds.

He said that the use of commercial endowment insurance funds should pursue relatively low risk, relatively stable returns of investment projects and investment channels, should not enter the competitive industry. The CIRC will refine business rules for key investment areas of commercial endowment insurance funds, coordinate the formulation of investment support policies, improve the risk guarantee mechanism, and provide green channels and priority support for commercial endowment insurance funds to serve the national strategy, invest in major projects, and support the construction of livelihood projects.

He said measures should be implemented to ensure that the insurance industry provides strong support for ensuring and improving people's livelihood.