The Internet Insurance Business Supervision Measures are here! Institutions licensed, personnel licensed

From 1.77 billion yuan in 2010 to 269.63 billion yuan in 2019, the scale of Internet insurance has grown more than a hundred times in the past decade. The rapid development of Internet insurance business and the problems and risks exposed in the process also call for the regulatory policy of Internet insurance business to keep pace with the times.

Based on the four regulatory principles of promoting the healthy development of Internet insurance business, effectively protecting the rights and interests of Internet insurance consumers, consistency between online and offline regulatory standards, and strengthening the management of market exit, the revised Measures for the Supervision of Internet Insurance Business (hereinafter referred to as "the Measures") further strengthens the principles of complying with the regulations, preventing risks and protecting consumers' rights and interests. risk prevention and protection of consumer rights and interests.

Specifically, the Measures reflect three major highlights, namely, licensed institutions, licensed personnel, and reserved space, which not only delineate a rigid bottom line and set flexible boundaries for the Internet insurance business, but also reserve sufficient space for development.

1, Internet insurance business: licensed

On the basis of "Internet insurance is a licensed financial business", the Measures strictly stipulate the main body of the Internet insurance business, business carriers and operating conditions.

Focusing on the main body of the operation, the Measures make it clear that except for insurance institutions established in accordance with the law, other institutions and individuals shall not carry out Internet insurance business. Insurance institutions include insurance companies (including mutual insurance organizations and Internet insurance companies) and insurance professional intermediaries (including insurance professional agencies, insurance brokers, insurance adjusters), as well as bank-type insurance agencies and Internet enterprises licensed to conduct insurance agency business according to law.

On the operating carrier, the Measures make it clear that the self-owned network platform is the only carrier for insurance institutions to operate Internet insurance business. Only the head office of the insurance agency for the operation of Internet insurance business, set up in accordance with the law, the independent operation of the network platform, enjoy complete data rights is self-owned network platform, in addition to the platform are not allowed to operate Internet insurance business. This is also to strengthen the concept of licensed operation, the main responsibility of the insurance organization of the additional provisions.

As long as insurance institutions and their self-owned online platforms meet the business conditions stipulated in Article 7 of the Measures, they can carry out Internet insurance business within the business scope set out in their licenses (filing forms), and they do not need to apply for business licenses or make business filings. At the same time, the Measures also explicitly prohibit non-insurance institutions to play ball business behavior, but also with the previous CBIRC clear that a mutual aid products are non-licensed operations in the same vein.

2, Internet insurance marketing and publicity: personnel licensed

Aimed at the current insurance agency practitioners generally through the WeChat circle of friends, public, micro letter groups, microblogging, short video, live and other ways to carry out Internet insurance marketing and publicity phenomenon, the Measures in the affirmation of its reasonableness at the same time also on the practitioners of marketing and publicity to make targeted provisions.

The Measures stipulate that insurance institutions may authorize insurance sales and insurance brokerage practitioners practicing in their own institutions to carry out marketing and publicity for Internet insurance business, and also need to bear the responsibility of compliance management for practitioners' marketing and publicity: insurance institutions should register and manage practitioners' practice and uniformly produce marketing and publicity content, monitor and inspect marketing and publicity information and activities, and carry out fine management and control.

Correspondingly, practitioners can carry out Internet insurance marketing and publicity within the scope of authorization of insurance institutions after being authorized by their respective institutions. According to the Measures, when operating private traffic, practitioners are required to prominently display the full name of the insurance organization to which they belong, as well as their personal name, license number and other information on the marketing and publicity page, and the full name of the insurance product, the full name of the insurance company underwriting the insurance, and the full name of the insurance intermediary organization providing sales or brokerage services.

In addition, in order to ensure that marketing and promotional activities are in line with the Advertising Law, financial marketing and promotions, as well as the relevant regulations of the CBIRC, the Measures also emphasize that the content of marketing and promotional activities should be consistent with the terms and conditions of the insurance contract, and that the main functions and features of the insurance products should be accurately described. Therefore, the Measures adhere to the principle of "personnel licensing", but also for improper publicity, sales misinformation and other issues on a "tightrope".

3, Internet insurance innovation and development: reserved space

The impact of the Internet on the insurance industry has penetrated into the product development, marketing and publicity, underwriting, surveying and loss adjusting and other aspects, but also brought a breakthrough in the regulatory thinking, which is centered in the insurance across the region, sales behavior can be traced back to the management of the open provisions.

Unlike the previous "Interim Measures for the Supervision of Internet Insurance Business" for the insurance companies will be the expansion of the Internet insurance business operating area to the provinces (autonomous regions and municipalities directly under the Central Government) without the establishment of branches of the insurance limited to the "Measures" only on the insurance organization through the Internet sales of insurance products and operating areas to make principle provisions, and clear follow-up CBIRC will be based on the stage of development of the Internet insurance business, The Measures only provide for the principle of insurance institutions selling insurance products through the Internet and the operation area, and make it clear that the CBIRC will follow up according to the stage of development of the Internet insurance business and the need for service protection of different insurance products, so as to ensure the effective connection of policies.

To implement the CBIRC's "Circular on Regulating the Retrospective Management of Internet Insurance Sales Practices", the Measures stipulate the basic principles and requirements of "full-process retrospectivity" in Article 33, and in light of the trend of the fusion of insurance and new technologies such as the Internet, big data and blockchain, it is clear that the CBIRC will

It is also worth noting that, unlike the previous exposure draft's unified regulatory provisions for the integration of online and offline insurance sales or insurance brokerage business, the Measures make it clear that online and offline business activities are subject to online and offline regulatory rules, and that online and offline regulatory rules are applicable only when separate regulation is not possible. This reflects the principle of prudent and inclusive revision, and also highlights the flexibility of regulation without "one size fits all".

The Measures*** contain 5 chapters and 83 articles, which comprehensively regulate the main theme of "licensed, certified, and operating in accordance with the law" emphasized by the CBIRC in recent years. According to the Measures, the future CBIRC will also promote the establishment of a new type of regulatory mechanism to adapt to the characteristics of the development of the Internet insurance business, the same type of business, the same type of subject, and strive to create a fair and orderly market environment, and promote the standardized and healthy development of Internet insurance business.