In order to implement the spirit of the Central Economic Work Conference and the series of important speeches of General Secretary Xi Jinping on economic and financial work, adhere to the “insurance industry surnames insurance, insurance regulatory commission surnames supervision”, effectively strengthen supervision, control chaos, to supplement short board and prevent risks, China Insurance Regulatory Commission recently issued the Notice on carrying out special rectification work on risk investigation of the use of insurance funds (hereinafter referred to as the notice), decided to carry out special rectification work on risk investigation of insurance funds.
The notice pointed out that the main task of this special rectification work is to find out and find potential risks in the use of insurance funds, improve market rules, standardize market behaviors, and prevent and resolve risks, firmly hold the bottom line of systemic risks. The China Insurance Regulatory Commission will resolutely rectify the chaos in the use of insurance funds, crack down on illegal acts, control leverage ratio, avoid regulatory gaps, and form a joint regulatory force; Supervise insurance institutions to strictly implement regulatory policies and regulate investment behavior, strengthen the concept of prudent and compliant operation; Further guide the structural reform on the supply side of insurance funds service, “three go, one drop, one supplement” and other strategic policies to better serve the real economy.
The notice clearly defines the work focus of this special rectification. First, focus on major stock equity investment, alternative and financial product investment, real estate investment and overseas investment and other business fields. The second is to focus on sorting out risk points such as compliance risk, regulatory arbitrage, benefit transmission, asset quality, asset-liability mismatch, etc. The third is to focus on checking the use of financial product nesting and financial channel business to carry out investment, use financial products, repurchase transactions and asset pledge financing to enlarge investment leverage, and use insurance funds to use related transactions, “Drawer agreement”, “Yin and Yang contract” interest transmission and other behaviors.
The notice requires that insurance institutions should attach great importance to and strengthen accountability. As the first responsible person, the principal responsible person should strengthen the organization and leadership, comprehensively investigate the potential risks of all kinds of funds, especially carry out inspections on key businesses, key projects, key posts and personnel to ensure the quality and quantity of work. Insurance institutions that have insufficient exposure to risk conditions, are not serious in their work, and report risk-free reports are the focus of investigation and punishment. Once a major violation of laws and regulations is verified, it will be severely punished according to laws and regulations. At the same time, insurance institutions are required to correct errors and rectify them in a timely manner, improve the mechanism for all kinds of problems found, and plug loopholes.
Next, according to the risk-oriented principle and the self-inspection situation of insurance institutions, the China Insurance Regulatory Commission will pay attention to the major risk areas of the use of insurance funds, and continue to carry out on-site inspections on outstanding problems and key insurance institutions.
In order to implement the spirit of the Central Economic Work Conference and the series of important speeches of General Secretary Xi Jinping on economic and financial work, adhere to the “insurance industry surnames insurance, insurance regulatory commission surnames supervision”, effectively strengthen supervision, control chaos, short board and risk prevention, recently, China