However, the survey shows that although microfinance insurance has played an important role in developing farmers' microfinance in rural credit cooperatives, supporting the development of agriculture, rural areas and farmers, and reducing credit risks, there are still many problems that cannot be ignored in the promotion process, resulting in the "poor promotion and slow development" of microfinance insurance, which should be paid attention to.
First, policy support is not in place. Taking Xinye, Henan Province as an example, the microfinance insurance business in this county was started spontaneously by rural credit cooperatives based on the inherent requirements of their own business development. Due to the lack of support from the government and relevant departments, the problems encountered in its operation were difficult to be effectively solved. At the same time, there is a lack of preferential support policies, such as the establishment of compensation fund for over-compensation, and the lack of financial support for microfinance guarantee insurance, which makes microfinance guarantee insurance lack of sustained and lasting development.
Second, the publicity is not enough. Because the microfinance insurance business serves farmers and urban and rural entrepreneurs, they don't know much about insurance knowledge and insurance terms, and many farmers have the wrong idea that "rural credit cooperatives and insurance companies are cheating in partnership". In addition, due to the uncertainty of accidents, people often take chances and think that it is not necessary to insure, especially with the increase of loan amount, the premium expenditure is also increasing, and the creditor's sense of resistance is stronger.
Third, loan officers lack professional knowledge. As a salesman of this kind of insurance, the loan officer of rural credit cooperatives cannot effectively publicize and inquire about farmers because of the limitation of insurance business knowledge. Take Xinye, Henan Province as an example. Only 15% of the loan officers of the county credit cooperatives have received relevant training, 20% of the loan officers are very familiar with the business, and 40% of the loan officers have only a general understanding. The lack of professional insurance knowledge has restricted the development of this business to some extent.
Fourth, the assessment mechanism is not perfect. On the one hand, there is a lack of assessment methods for directors of rural credit cooperatives and an effective assessment and incentive mechanism, which makes it difficult to advance this work in depth. On the other hand, although the Associated Press charges the grass-roots business managers, it only rewards them without punishment, and the enthusiasm of all staff cannot be fully mobilized.
Fifth, the claims procedure is complicated. After an accident, it is a great comfort to the insured to pay claims in time and actively according to the contract. However, in the specific operation, the strict procedures for insurance claims have also affected the enthusiasm of borrowers for insurance. For example, the borrower's accidental injury regular insurance business stipulates that if the insured person is completely disabled when an accidental injury occurs, it must be assessed, and the assessment of disability requires a certain fee, and there are many procedures and links, resulting in farmers' reluctance to assess disability, and they cannot get compensation in time.
The development of microfinance insurance is a rare opportunity to expand the popularity of rural credit cooperatives, improve their core competitiveness, increase their income and achieve a win-win situation. Rural credit cooperatives and insurance companies should not only divide their work, but also cooperate to broaden the scope of cooperation in microfinance insurance. At present, vigorously developing micro-credit insurance should start from the following aspects:
First, increase policy support. It is suggested that the government should take the lead in promoting this work, and a joint working mechanism of banking supervision, people's bank of China, insurance, finance, taxation, industry and commerce can be established. In particular, local governments should introduce preferential policies according to local conditions, such as providing financial support for microfinance guarantee insurance and giving certain subsidies to reduce farmers' loan costs and mobilize farmers' enthusiasm for participating in microfinance insurance.
The second is to strengthen the publicity of micro insurance. Rural credit cooperatives and insurance companies should widely publicize the benefits, public welfare and mutual assistance of micro-insurance in a way that farmers love and understand. We should actively make use of various media to publicize the procedures, insurance benefits and typical cases of micro-loan insurance. Through media reports at all levels and the demonstration and guidance of actual compensation, people will realize that micro-insurance is really the insurance they need, thus changing farmers from "passively buying insurance" to "actively buying insurance" and "clearly buying insurance".
The third is to establish a training and assessment reward mechanism. As a rural credit cooperative, one is to find the right combination point. According to the development and changes of rural economy, we should identify the combination point and contact point of credit and insurance business, determine the appropriate underwriting ratio according to the loan volume of outlets, and make the micro-loan insurance business detailed. The second is to strengthen training. Starting with improving the understanding and operational skills of all employees, the group insurance lecturers are invited to concentrate on business training for credit personnel, imparting sales skills, introducing standardized business handling steps and processes, and improving employees' practical operational skills.
The fourth is to strengthen service and innovation. First, according to the characteristics of rural economy, insurance companies should innovate micro-loan insurance products that are more in line with rural characteristics, and the products should fully reflect the benefits of benefiting farmers and reduce the exclusions that are not in line with rural reality. The second is to strengthen the services of micro-insurance so that farmers can buy with confidence. Business management should improve efficiency, optimize processes, and open up a green channel for claims of microfinance insurance. Third, rural credit cooperatives should negotiate with insurance companies to increase insurance agency business including guarantee and mortgage loans, and at the same time reduce authorization procedures and highlight the approval of credit lines.
Fifth, reasonably control the borrower's financing cost and term. Farmers' biggest resistance to micro-loan insurance lies in the increase of financing cost. Rural credit cooperatives should control it at the level of not exceeding the benchmark interest rate by 30% in the same period, and ensure that the total premium rate and the borrower's accidental injury insurance rate should not exceed 3% of the loan principal. The handling financial institution can implement differential interest rate (rate) according to the borrower's actual risk and credit status. Small loans take the form of paying interest in installments and repaying the principal in one lump sum at maturity. The loan period is generally less than half a year, and the maximum is not more than 1 year, so as to reduce the burden on farmers.
Sixth, strict management and risk control. Rural credit cooperatives should standardize the business process of small loan insurance, strictly manage the system, carry out risk investigation and other means to put an end to all kinds of risks that may arise in the course of business operation. According to the requirements of credit due diligence, credit personnel should strictly control the quality of small loan credit and strictly control the special use of funds, from customer application acceptance, pre-loan investigation, analysis and decision-making in loan to post-loan tracking management and overdue collection, and never lower the loan issuance standard and relax post-loan management because of guarantee insurance.
Extended reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.