This year, the supervision of the insurance industry is really busy, and the blockbuster policies are one after another:
At the end of July, the whole industry 3The 5% predetermined interest rate was lowered to 3%, and we all know it with our old friends
In August, the Ministry of Life Insurance issued the Notice on Regulating Insurance Products of Bank ** Channels, requiring bancassurance channels to reduce handling fees, and the final commission rate was reduced by almost 30%.
In the following October, the "Notice on Strengthening Management to Promote the Steady and Healthy Development of Life Insurance Business" was issued, mainly for the "highlight" of major insurance companies every year - the good start activity, which clearly prohibits the collection of premiums in advance, so this year's good start is much more low-key.
And now, regulation has made it clear on several occasionsIt is required to fully implement the "integration of newspapers and banks" in the insurance industryIn particular, it is tantamount to dropping another bombshell on the insurance industry by starting the "integration of newspapers and banks" of personal channels and brokerage channels.
Judging from the implementation and implementation of regulatory policies this year, the whole industry is "newspaper and bank integration", with great determination and resolute will, and it is almost difficult to change, and it is possible that it will be implemented before the end of this year.
What is "newspaper and bank integration"?What is the impact on the industry, the market, and the product?Will the price of insurance products increase as a result?
What is "newspaper and bank integration"?
It refers to the assumptions used in the product approval or filing materials submitted by the insurance company to the regulatory authorities, which should be consistent with the actual situation in the business process, and cannot be "said one thing and done another".
Assuming that a product collects a premium of 1,000 yuan and reports it to the regulatory authorities, it will cost 50 yuan, and the remaining 950 yuan can be used to accumulate investment income for users.
In this case, the cash value and insurance benefits of the product to the customer are relatively high.
These data are the data used by insurance companies when filing with regulators.
But in fact, it is not the case, the product also charges 1,000 yuan in premium, and the actual cost is not only 50 yuan, but 80 yuan, or even more.
Because if the insurance company only spends 50 yuan in fees, it is difficult to open the market.
On the one hand, sales expenses are too low to motivate the sales force;On the other hand, peers are also very rolled, everyone wants to sell their own products, you only give 50 yuan to the sales channel, often can't do those companies that give 80 yuan, or even 100 yuan.
So in order to increase product sales, some of the more aggressive insurance companies usually operate like this:
The cost of 50 yuan is still reported to the supervision, and the product benefits to users are also calculated according to 950 yuan, but the actual sales fee will be 80 yuan or higher.
This is where there is a "disunity between the newspaper and the bank".
"The disintegration of newspapers and banks" has become the norm in the insurance industry, and the most direct consequence is that the insurance company has to pay for the extra part of the sales expenses.
You know,Insurance companies make money mainly by the "three differences", namelySpreads, death spreads, and fee spreads
When the economy is good, the insurance company makes a profit margin, and even if it loses a little bit in the death difference and the fee difference, it can also be made up by the interest rate difference.
However, in the case of slowing economic growth, the pressure on the investment side of insurance companies has been relatively large, and the space to earn interest margins is getting smaller and smaller.
The most intuitive data is: in the past ten years, the average investment rate of return in China's insurance industry is only 5%.
If the fee difference is still losing money at this time, and you have to rely on the interest rate difference to transfuse blood, it will be really difficult.
In order to prevent insurance companies from continuing to use the method of "subsidizing handling fees" to grab business and incur greater cost losses, it is necessary to implement the "integration of reporting and banking".
In recent years, the business strategy of some insurance companies has been relatively aggressive, and it is easy to bury hidden dangers for the future development.
Take insurance protection ** as an example, in order to deal with the risk events of the insurance industry, in recent years, it has been used as a rescue fund in a number of insurance companies, such as 20 billion yuan of our insurance, 22.6 billion yuan of Ruizhong Life Insurance, and 66 million yuan of Zhonghui Life Insurance400 million, Harbour Life 37500 million, etc., simply add up to tens of billions.
The insurance industry is a long-term industry, and for the healthier development of the industry, regulators must make stricter requirements for insurance companies to prevent problems before they occur. This is also the reason for the intensive policy adjustment this year.
What will be the impact of the "integration of newspapers and banks"?
The policy imperative has several obvious implications for the industry and ordinary consumers:
First, reduce handling fees and profit targets.
This is for insurance practitioners and insurance companies.
For example, a while ago, the bancassurance channel implemented the "integration of newspapers and banks", which reduced the commission rate by an average of 30%.
Then, once the whole insurance industry implements the "integration of newspapers and banks", the commissions of other channels other than bancassurance will not be able to maintain the original level.
For insurance intermediary channels and salespeople, selling the same insurance products, income commission or something will shrink.
This leads to two results:
First, squeeze out some ** people who are looking for quick money and low production capacity.
The high commission system has attracted many people to enter the industry, but this group of people has no intention of working in the industry, that is, to find money as soon as possible, resulting in frequent illegal actions, customer interests are not protected, and the industry has a negative image.
After the commission is reduced, this part of the people will leave the life insurance industry, which is conducive to the purification of the team.
Second, rectify unhealthy tendencies in the industry and establish professional values.
Because of the reduction of sales commissions, illegal operations such as "rebates" and "rebates" will be reduced, which is conducive to the best people to concentrate on improving service levels, rather than using things other than insurance to develop their business.
Only those who hold the "long-termism", continue Xi to learn and improve, and continue to improve their professional skills can survive in this industry and bring equivalent and professional services to the society.
Second, reduce the benefits of the product, and the product may be **.
This point is closely related to ordinary consumers.
It is foreseeable that after the "integration of newspapers and banks" is truly implemented, those insurance products with aggressive pricing in the current market will no longer exist.
Insurance** depends on the predetermined interest rate, predetermined incidence rate and predetermined expense rate, which are related and interactive.
As a result of the reduction in the predetermined interest rate, the price of protection insurance will increase, and the income of savings insurance will decrease.
Even if the predetermined interest rate is not reduced, after the "integration of the newspaper and the bank", the insurance company can only increase the predetermined expense ratio so that it is consistent with the actual expense rate, so that the actual income of the product, i.e., the IRR, will be reduced.
Therefore, there is this possibility of a price increase in December. After the "integration of newspapers and banks", the decline in product quality and income should be the general trend.
If you pay the same premium, the income you can get in the future will also shrink;Or, if you want to get the current level of income, you need to invest more premiums in the future to achieve it.
The most affected of this is undoubtedly annuity insurance, which occupies more premiums, increased whole life insurance, etc.
Some high-quality savings insurance products with extreme pricing will most likely not escape the outcome of being adjusted or disappearing, so friends who have capital planning themselves can step up their efforts to arrange it properly during this time.
Koto has something to say
In the life insurance market, there is also an impossible triangle: insurance companies, people, and consumers, all of whom have their own interests.
Insurance companies want to develop and make profits;
* People want to survive, they want commissions;
Consumers want protection and profit.
How do you balance the three?
The implementation of the policy will undoubtedly bring some pressure and challenges to the market, but it will also encourage the insurance industry to develop more standardized, compliant and high-quality.
As the main body of the industry, insurance companies should further improve their operating efficiency in order to benefit the people, which is the future direction of the development of China's financial industry.
* People have been in the industry for a long time, continue to learn Xi progress, and meet the needs of consumers with appropriate services.
In this way, we can "win three".
From the insurance product side, 3The 5% era has passed, and according to the current trend, the era of the 3% predetermined interest rate may soon become a passerby.