Circular of the China Insurance Regulatory Commission on Issuing the Outline of the 13th Five-year Plan for the Development of China's Insurance Industry
Circular of the China Insurance Regulatory Commission on Issuing the Outline of the 13th Five-year Plan for the Development of China's Insurance Industry
Circular of the China Insurance Regulatory Commission on Issuing the Outline of the 13th Five-year Plan for the Development of China's Insurance Industry
Bao Jian Fa [2016] No.74
August 23, 2016
All departments of authorities, insurance regulatory bureaus, training centers, China Insurance Security Fund Co., Ltd., Chinese Insurance Information Technology Co., Ltd., China Insurance Investment Co., Ltd., China Insurance Exchange Co., Ltd., China Insurance Media Co., Ltd., Insurance Association of China, Insurance Society of China, China Association of Actuaries, Insurance Asset Management Association of China, insurance companies, insurance asset management companies and professional insurance agencies,
The "13th Five-year Plan" period is the decisive stage of finishing building a moderately prosperous society and also the critical period for developing China from a big insurance country to a strong one. The Outline of the 13th Five-year Plan for the Development of China's Insurance Industry (this "Outline") is prepared in accordance with the Outline of the 13th Five-year Plan for National Economic and Social Development of the People's Republic of China and the Several Opinions of the State Council on Accelerating the Development of the Modern Insurance Service Industry. This Outline sets out the objectives, tasks and measures in respect of the development of the insurance industry in the next five years and serves as the guideline for the whole industry.
All insurance regulatory bureaus shall, in combination with the spirit of this Outline and the actual conditions of local insurance markets, put forward the specific measures for implementing this Outline and effectively carry out the organic connection with local plans for national economic and social development. The Insurance Association of China and the Insurance Society of China shall strengthen the guidance for and coordination of their members, organize and effectively conduct the learning and publicity of this Outline, and propel their members to thoroughly implement this Outline. All insurance institutions shall earnestly prepare and implement their own development plans as required by this Outline, in light of their actual conditions and in accordance with the Guidance on the Administration of Development Plans of Insurance Companies.
Outline of the 13th Five-year Plan for the Development of China's Insurance Industry
The Outline of the 13th Five-year Plan for the Development of China's Insurance Industry (this "Outline") prepared in accordance with the Outline of the 13th Five-year Plan for National Economic and Social Development of the People's Republic of China and the Several Opinions on Accelerating the Development of the Modern Insurance Service Industry (Guo Fa [2014] No.29) mainly specifies the guidelines, development objectives, key tasks and policy measures related to China's insurance industry during the "13th Five-year Plan" period (2016-2020) and is a grand blueprint for the scientific development of the insurance industry in the next five years, a guideline for the reform and innovation of the whole industry and an important basis for the performance of duties by insurance regulatory authorities.
Chapter I Guidelines for and Main Objectives of Accelerating the Development of the Modern Insurance Service Industry
The "13th Five-year Plan" period is the decisive stage of finishing building a moderately prosperous society and realizing the goals of the first centenary, which will lay a more solid foundation for realizing the goals of the second centenary and the Chinese dream, namely, great rejuvenation of the Chinese nation. For China's insurance industry that shall be based on a new starting point, the industry reform and innovation shall be promoted continuously to better support economic and social development and make greater contributions to the service for the modernization of the national governance system and governance ability.
1. Basic Information on the Development of China's Insurance Industry during the "12th Five-year Plan" Period
The "12th Five-year Plan" period was extraordinary for the development of China's insurance industry. Under the correct leadership of the Central Committee of the Communist Party of China ("CPC") and the State Council, the main objectives and tasks of the 12th Five-year Plan for the whole industry were successfully completed by taking the initiative to adapt to and accurately grasp the new normal, persisting in the work thoughts of "improving services, conducting strict regulation, preventing risks and promoting development", and comprehensively carrying forward the development and regulation of insurance, thus creating a new situation of industry reform and development.
-Marked enhancement of comprehensive strength. China's premium income increased from CNY1.3 trillion in 2010 to CNY2.4 trillion in 2015, indicating an average annual growth of 13.4%. The total assets of the insurance industry successfully doubled, increasing from CNY5 trillion in 2010 to CNY12 trillion in 2015. The net assets of the whole industry reached CNY1.6 trillion, and the solvency of the insurance industry was overall sufficient. The profits in the industry increased by 2.4 times, from CNY83.7 billion in 2010 to CNY282.4 billion in 2015. The insurance penetration reached 3.6%, and insurance density reached CNY1,768 per person. The insurance market in China caught up with and surpassed that of Germany, France and Britain one after the other, rising to third place from sixth in global ranking.
-All-round breakthroughs in insurance reform. The market access and exit mechanisms were continuously optimized; comprehensive, professional, regional and group insurance institutions went forward together, and eight insurance institutions were listed at home and abroad; self-insurance, mutual insurance, internet insurance and other new subjects were under innovative development; and the unified, open and energetic modern insurance market system featuring coordinated development was increasingly perfected. The market-oriented reform of premium rates of life insurance products was put into full implementation; the reform of the administrative system for commercial auto insurance clauses and premium rates was pushed forward steadily; and the decisive role of the market in resources allocation was brought into effective play. The reform of the utilization system for insurance funds was promoted deeply, and the diversified allocation pattern of insurance funds took initial shape.
-Continuous improvement of service ability. During the "12th Five-year Plan" period, the insurance industry provided the whole of society with insurance indemnities and payments of CNY3.1, giving better play to the roles of economic compensation and social risk management. The critical illness insurance covered 920 million people from 31 provinces (autonomous regions and municipalities directly under the Central Government) of China. The agricultural insurance provided the accumulative risk guarantee of CNY6.5 trillion for 1.04 billion peasant households, with indemnities of CNY91.4 billion paid to 120 million peasant households. The liability insurance covered all public service fields, and the coverage rate of compulsory insurance against traffic accidents of vehicles rose from 79% in 2010 to 92% in 2015. The export credit insurance provided the accumulative risk guarantee of nearly USD1.6 trillion, effectively promoting the development of an export-oriented economy. In the insurance industry, 499 support plans for creditors' rights, equities and project assets in total were launched, and the total scale of record-filing and registration reached CNY1.3 trillion.
-Continuous optimization of the development environment. The State Council promulgated the Several Opinions on Accelerating the Development of the Modern Insurance Service Industry and the Several Opinions on Accelerating the Development of Commercial Health Insurance, lifting the strategic positioning of the insurance industry to an unprecedented new height in history. Tirty-five provinces (autonomous regions and municipalities directly under the Central Government) introduced the documents to promote the development of the insurance industry; the China Insurance Regulatory Commission entered into a memorandum of cooperation with 26 local governments; the comprehensive insurance innovation demonstration areas were established in six regions including Shenzhen City and Ningbo City; and government promotion and policy support were unprecedentedly strengthened. The revision of the Insurance Law was carried forward; the Regulations on Agricultural Insurance were put into implementation officially; breakthroughs were achieved in the construction of the catastrophe insurance system; and the system foundation for the development of the insurance industry was further consolidated.
-In-depth promotion of regulatory innovation. The regulation system for the governance of insurance companies with Chinese characteristics was preliminarily established to propel the regulation of corporate governance to enter a new stage of quantitative rating and lead the new trend of international regulation rules. China's second generation of solvency supervision system was completed and had important influences on the development of global insurance markets and international insurance regulation rules. Consumer rights and interests were effectively protected by continuously strengthening the regulation of market behaviors, opening the 12378 hotline for rights protection, carrying out the connection of litigation and mediation, driving the construction of the credit system in the industry, and comprehensively settling the issues of difficulty in settlement of claims under auto insurance and misleading sales of personal insurance. Multilateral and bilateral international cooperation in insurance regulation was pushed forward continuously; China was elected the Chairman-in-Office of the Asian Forum of Insurance Regulators and presided over the adoption of the Colombo Declaration; and China's right of speech in the field of international insurance regulation increased continually. The comprehensive, three-dimensional and efficient risk prevention system was established, and the bottom line that no systemic regional risk occurs was upheld.
2. Basic Features of the Environment for the Development of China's Insurance Industry during the "13th Five-year Plan" Period
During the "13th Five-year Plan" period, the situation of the world and China will continue to undergo great changes, and China's economic and social development shows new stage features. According to the comprehensive judgment of the domestic and international situation, China's development is still in the important strategic opportunity period during which great deeds may be accomplished, but also many problems and challenges are faced.
Due to social development, the aging of China's population is quickening; the two-child policy has been implemented throughout the country; family structure is changing; the contradiction of insufficient old-age and medical security is prominent; and commercial insurance is playing an increasing role in the social security system. With the gradual transformation of government functions, continuous innovation is being made in the social administration mode; it is an inevitable choice to meet the demand of social administration and public services by use of market methods; and commercial insurance is becoming an important means of promoting the modernization of the national governance system and governance ability. Social development is becoming increasingly diversified; consumption structure is being continuously upgraded; the public's insurance awareness is enhancing constantly; insurance demands are more diversified; and the development space for commercial insurance is becoming broader.
Due to the economic situation, China's economy remains constructive for the long term, the reforms in all fields are promoted with great efforts, and the overall social situation is harmonious and stable, so as to lay a solid economic foundation for the steady and rapid development of the insurance industry. Major national strategic deployments, including the Belt and Road Initiative, coordinated development of the Beijing-Tianjin-Hebei region and the Yangtze River Economic Belt, are bringing new development opportunities for the insurance industry. The supply-side reform is being promoted deeply; the quality and efficiency of the supply system is gradually improving; economic structure is being transformed and upgraded; the vitality of enterprise development and consumer potential are being unleashed; and insurance demand is becoming increasingly diversified. The rapid development of the internet, big data, cloud computing and other new technologies facilitates the continuous emergence of new insurance products, technologies and modes, and provides strong support for the innovative development of the insurance industry.
In regard to the international environment, with the in-depth promotion of economic globalization, peaceful development and win-win cooperation are still the mainstream of the world today. China's economy and global economy are increasingly connected and influence each other, international exchange and cooperation continue to be deepened, and China's economic growth has gradually had an obvious spillover effect on global economic recovery, thus creating a good environment for the insurance industry to make better use of the international market. Global insurance develops with each passing day, the concept and method of insurance regulation continue to be optimized, and regulatory authorities of all countries are deepening their cooperation, which offers the opportunity for China's insurance industry to make better use of international capital, technologies and talents.
Meanwhile, it is also seen that the global economy is still at the stage of in-depth adjustment; trade protectionism is strengthened; the international financial market fluctuates more seriously; the cross-border transfer of risks is accelerated; and economic recovery is faced with many new uncertainties. China's economy is in the "Three Period Superimposed" (period of change in growth rate, period of painful structural adjustment and period of digestion of earlier stimulating policies), during which old and new momentums for economic growth are in transition, structural contradictions that have accumulated over the long term are gradually appearing, and comprehensive operations of economy and finance are quickening, increasing the pressure on the stable operation and risk prevention of the insurance market. The issue of unbalanced and uncoordinated development of the insurance industry is still prominent; operation and management levels are low; innovation ability is weak; insurance products and services can't meet the market demand; and insurance development and regulation are faced with new pressure and challenges.
3. Guidelines for the Development of China's Insurance Industry during the "13th Five-year Plan" Period
Fully implement the spirit of the 18th CPC National Congress and Third, Fourth and Fifth Plenary Sessions of the 18th CPC Central Committee, take Deng Xiaoping Theories, the important thought of Three Represents and the concept of scientific development as the guidelines, thoroughly implement the spirit of the series of important addresses of General Secretary Xi Jinping, base on the service for the modernization of the national governance system and governance ability, take the initiative to adapt to the situation and requirements of the new normal of economic development, regard the supply-side structural reform as the main line and the expansion of effective insurance supply to meet the increasing diversified social demands for insurance services as the starting point, firmly establish and implement the ideas of innovative, coordinated, green, open and shared development, improve the quality and efficiency of development, and construct a modern insurance service industry with market competitiveness full of creativity and vitality.
-Optimizing supply and promoting innovative development.
......
Bao Jian Fa [2016] No.74
August 23, 2016
All departments of authorities, insurance regulatory bureaus, training centers, China Insurance Security Fund Co., Ltd., Chinese Insurance Information Technology Co., Ltd., China Insurance Investment Co., Ltd., China Insurance Exchange Co., Ltd., China Insurance Media Co., Ltd., Insurance Association of China, Insurance Society of China, China Association of Actuaries, Insurance Asset Management Association of China, insurance companies, insurance asset management companies and professional insurance agencies,
The "13th Five-year Plan" period is the decisive stage of finishing building a moderately prosperous society and also the critical period for developing China from a big insurance country to a strong one. The Outline of the 13th Five-year Plan for the Development of China's Insurance Industry (this "Outline") is prepared in accordance with the Outline of the 13th Five-year Plan for National Economic and Social Development of the People's Republic of China and the Several Opinions of the State Council on Accelerating the Development of the Modern Insurance Service Industry. This Outline sets out the objectives, tasks and measures in respect of the development of the insurance industry in the next five years and serves as the guideline for the whole industry.
All insurance regulatory bureaus shall, in combination with the spirit of this Outline and the actual conditions of local insurance markets, put forward the specific measures for implementing this Outline and effectively carry out the organic connection with local plans for national economic and social development. The Insurance Association of China and the Insurance Society of China shall strengthen the guidance for and coordination of their members, organize and effectively conduct the learning and publicity of this Outline, and propel their members to thoroughly implement this Outline. All insurance institutions shall earnestly prepare and implement their own development plans as required by this Outline, in light of their actual conditions and in accordance with the Guidance on the Administration of Development Plans of Insurance Companies.
Outline of the 13th Five-year Plan for the Development of China's Insurance Industry
The Outline of the 13th Five-year Plan for the Development of China's Insurance Industry (this "Outline") prepared in accordance with the Outline of the 13th Five-year Plan for National Economic and Social Development of the People's Republic of China and the Several Opinions on Accelerating the Development of the Modern Insurance Service Industry (Guo Fa [2014] No.29) mainly specifies the guidelines, development objectives, key tasks and policy measures related to China's insurance industry during the "13th Five-year Plan" period (2016-2020) and is a grand blueprint for the scientific development of the insurance industry in the next five years, a guideline for the reform and innovation of the whole industry and an important basis for the performance of duties by insurance regulatory authorities.
Chapter I Guidelines for and Main Objectives of Accelerating the Development of the Modern Insurance Service Industry
The "13th Five-year Plan" period is the decisive stage of finishing building a moderately prosperous society and realizing the goals of the first centenary, which will lay a more solid foundation for realizing the goals of the second centenary and the Chinese dream, namely, great rejuvenation of the Chinese nation. For China's insurance industry that shall be based on a new starting point, the industry reform and innovation shall be promoted continuously to better support economic and social development and make greater contributions to the service for the modernization of the national governance system and governance ability.
1. Basic Information on the Development of China's Insurance Industry during the "12th Five-year Plan" Period
The "12th Five-year Plan" period was extraordinary for the development of China's insurance industry. Under the correct leadership of the Central Committee of the Communist Party of China ("CPC") and the State Council, the main objectives and tasks of the 12th Five-year Plan for the whole industry were successfully completed by taking the initiative to adapt to and accurately grasp the new normal, persisting in the work thoughts of "improving services, conducting strict regulation, preventing risks and promoting development", and comprehensively carrying forward the development and regulation of insurance, thus creating a new situation of industry reform and development.
-Marked enhancement of comprehensive strength. China's premium income increased from CNY1.3 trillion in 2010 to CNY2.4 trillion in 2015, indicating an average annual growth of 13.4%. The total assets of the insurance industry successfully doubled, increasing from CNY5 trillion in 2010 to CNY12 trillion in 2015. The net assets of the whole industry reached CNY1.6 trillion, and the solvency of the insurance industry was overall sufficient. The profits in the industry increased by 2.4 times, from CNY83.7 billion in 2010 to CNY282.4 billion in 2015. The insurance penetration reached 3.6%, and insurance density reached CNY1,768 per person. The insurance market in China caught up with and surpassed that of Germany, France and Britain one after the other, rising to third place from sixth in global ranking.
-All-round breakthroughs in insurance reform. The market access and exit mechanisms were continuously optimized; comprehensive, professional, regional and group insurance institutions went forward together, and eight insurance institutions were listed at home and abroad; self-insurance, mutual insurance, internet insurance and other new subjects were under innovative development; and the unified, open and energetic modern insurance market system featuring coordinated development was increasingly perfected. The market-oriented reform of premium rates of life insurance products was put into full implementation; the reform of the administrative system for commercial auto insurance clauses and premium rates was pushed forward steadily; and the decisive role of the market in resources allocation was brought into effective play. The reform of the utilization system for insurance funds was promoted deeply, and the diversified allocation pattern of insurance funds took initial shape.
-Continuous improvement of service ability. During the "12th Five-year Plan" period, the insurance industry provided the whole of society with insurance indemnities and payments of CNY3.1, giving better play to the roles of economic compensation and social risk management. The critical illness insurance covered 920 million people from 31 provinces (autonomous regions and municipalities directly under the Central Government) of China. The agricultural insurance provided the accumulative risk guarantee of CNY6.5 trillion for 1.04 billion peasant households, with indemnities of CNY91.4 billion paid to 120 million peasant households. The liability insurance covered all public service fields, and the coverage rate of compulsory insurance against traffic accidents of vehicles rose from 79% in 2010 to 92% in 2015. The export credit insurance provided the accumulative risk guarantee of nearly USD1.6 trillion, effectively promoting the development of an export-oriented economy. In the insurance industry, 499 support plans for creditors' rights, equities and project assets in total were launched, and the total scale of record-filing and registration reached CNY1.3 trillion.
-Continuous optimization of the development environment. The State Council promulgated the Several Opinions on Accelerating the Development of the Modern Insurance Service Industry and the Several Opinions on Accelerating the Development of Commercial Health Insurance, lifting the strategic positioning of the insurance industry to an unprecedented new height in history. Tirty-five provinces (autonomous regions and municipalities directly under the Central Government) introduced the documents to promote the development of the insurance industry; the China Insurance Regulatory Commission entered into a memorandum of cooperation with 26 local governments; the comprehensive insurance innovation demonstration areas were established in six regions including Shenzhen City and Ningbo City; and government promotion and policy support were unprecedentedly strengthened. The revision of the Insurance Law was carried forward; the Regulations on Agricultural Insurance were put into implementation officially; breakthroughs were achieved in the construction of the catastrophe insurance system; and the system foundation for the development of the insurance industry was further consolidated.
-In-depth promotion of regulatory innovation. The regulation system for the governance of insurance companies with Chinese characteristics was preliminarily established to propel the regulation of corporate governance to enter a new stage of quantitative rating and lead the new trend of international regulation rules. China's second generation of solvency supervision system was completed and had important influences on the development of global insurance markets and international insurance regulation rules. Consumer rights and interests were effectively protected by continuously strengthening the regulation of market behaviors, opening the 12378 hotline for rights protection, carrying out the connection of litigation and mediation, driving the construction of the credit system in the industry, and comprehensively settling the issues of difficulty in settlement of claims under auto insurance and misleading sales of personal insurance. Multilateral and bilateral international cooperation in insurance regulation was pushed forward continuously; China was elected the Chairman-in-Office of the Asian Forum of Insurance Regulators and presided over the adoption of the Colombo Declaration; and China's right of speech in the field of international insurance regulation increased continually. The comprehensive, three-dimensional and efficient risk prevention system was established, and the bottom line that no systemic regional risk occurs was upheld.
2. Basic Features of the Environment for the Development of China's Insurance Industry during the "13th Five-year Plan" Period
During the "13th Five-year Plan" period, the situation of the world and China will continue to undergo great changes, and China's economic and social development shows new stage features. According to the comprehensive judgment of the domestic and international situation, China's development is still in the important strategic opportunity period during which great deeds may be accomplished, but also many problems and challenges are faced.
Due to social development, the aging of China's population is quickening; the two-child policy has been implemented throughout the country; family structure is changing; the contradiction of insufficient old-age and medical security is prominent; and commercial insurance is playing an increasing role in the social security system. With the gradual transformation of government functions, continuous innovation is being made in the social administration mode; it is an inevitable choice to meet the demand of social administration and public services by use of market methods; and commercial insurance is becoming an important means of promoting the modernization of the national governance system and governance ability. Social development is becoming increasingly diversified; consumption structure is being continuously upgraded; the public's insurance awareness is enhancing constantly; insurance demands are more diversified; and the development space for commercial insurance is becoming broader.
Due to the economic situation, China's economy remains constructive for the long term, the reforms in all fields are promoted with great efforts, and the overall social situation is harmonious and stable, so as to lay a solid economic foundation for the steady and rapid development of the insurance industry. Major national strategic deployments, including the Belt and Road Initiative, coordinated development of the Beijing-Tianjin-Hebei region and the Yangtze River Economic Belt, are bringing new development opportunities for the insurance industry. The supply-side reform is being promoted deeply; the quality and efficiency of the supply system is gradually improving; economic structure is being transformed and upgraded; the vitality of enterprise development and consumer potential are being unleashed; and insurance demand is becoming increasingly diversified. The rapid development of the internet, big data, cloud computing and other new technologies facilitates the continuous emergence of new insurance products, technologies and modes, and provides strong support for the innovative development of the insurance industry.
In regard to the international environment, with the in-depth promotion of economic globalization, peaceful development and win-win cooperation are still the mainstream of the world today. China's economy and global economy are increasingly connected and influence each other, international exchange and cooperation continue to be deepened, and China's economic growth has gradually had an obvious spillover effect on global economic recovery, thus creating a good environment for the insurance industry to make better use of the international market. Global insurance develops with each passing day, the concept and method of insurance regulation continue to be optimized, and regulatory authorities of all countries are deepening their cooperation, which offers the opportunity for China's insurance industry to make better use of international capital, technologies and talents.
Meanwhile, it is also seen that the global economy is still at the stage of in-depth adjustment; trade protectionism is strengthened; the international financial market fluctuates more seriously; the cross-border transfer of risks is accelerated; and economic recovery is faced with many new uncertainties. China's economy is in the "Three Period Superimposed" (period of change in growth rate, period of painful structural adjustment and period of digestion of earlier stimulating policies), during which old and new momentums for economic growth are in transition, structural contradictions that have accumulated over the long term are gradually appearing, and comprehensive operations of economy and finance are quickening, increasing the pressure on the stable operation and risk prevention of the insurance market. The issue of unbalanced and uncoordinated development of the insurance industry is still prominent; operation and management levels are low; innovation ability is weak; insurance products and services can't meet the market demand; and insurance development and regulation are faced with new pressure and challenges.
3. Guidelines for the Development of China's Insurance Industry during the "13th Five-year Plan" Period
Fully implement the spirit of the 18th CPC National Congress and Third, Fourth and Fifth Plenary Sessions of the 18th CPC Central Committee, take Deng Xiaoping Theories, the important thought of Three Represents and the concept of scientific development as the guidelines, thoroughly implement the spirit of the series of important addresses of General Secretary Xi Jinping, base on the service for the modernization of the national governance system and governance ability, take the initiative to adapt to the situation and requirements of the new normal of economic development, regard the supply-side structural reform as the main line and the expansion of effective insurance supply to meet the increasing diversified social demands for insurance services as the starting point, firmly establish and implement the ideas of innovative, coordinated, green, open and shared development, improve the quality and efficiency of development, and construct a modern insurance service industry with market competitiveness full of creativity and vitality.
-Optimizing supply and promoting innovative development.
......