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more than two weeks after the release of the "notice on strengthening and improving the supervision of internet property insurance business" (hereinafter referred to as the "notice"), insurance companies began to rectify their businesses and take actions around the "notice".

on august 27, a reporter from the "daily economic news" found that five property and casualty insurance institutions, including bohai property & casualty insurance co., ltd. (hereinafter referred to as bohai property & casualty insurance), huaan property & casualty insurance co., ltd. (hereinafter referred to as huaan insurance), anhua agricultural insurance co., ltd. (hereinafter referred to as anhua agricultural insurance), dubang property & casualty insurance co., ltd. (hereinafter referred to as dubang insurance), and xinjiang qianhai united property insurance co., ltd. (hereinafter referred to as qianhai united property & casualty insurance), have recently issued announcements to suspend their internet business, and stated that they will provide services for the insured policies in the future.

5 property and casualty insurance companies issued notices to suspend internet business

on august 26, bohai property & casualty insurance co., ltd. issued an announcement dated august 21, 2024, stating that in accordance with relevant regulatory provisions on the operation of internet insurance business, the company has suspended its internet insurance business. for the insurance contracts that have come into effect, the company will normally perform the insurance liabilities agreed in the contract and provide follow-up services such as claims settlement.

on the same day, qianhai united property insurance also issued an announcement stating that the company has suspended the development of new internet property insurance business. for customers who have already been insured, it will continue to fulfill insurance obligations in accordance with the contract and protect customer rights and interests.

previously, huaan insurance, anhua agricultural insurance, dubang insurance and other companies successively issued announcements, announcing the suspension of their internet property insurance business.

in the announcement, huaan insurance stated that if there are new insurance purchase needs, you can go to the company's various business outlets to consult and purchase; if there are other insurance service needs, you can download the huaan insurance official app to use the online service by yourself or call the customer service hotline for consultation.

dubang insurance said that the rights and interests of customers who have already been insured will not be affected, and it will strictly perform its insurance obligations in accordance with the insurance contract and continue to provide insurance protection and services until the end of the insurance period. if there is a new insurance demand, it can be purchased through other business channels.

anhua agricultural insurance stated that the company will completely stop selling internet property insurance business from september 1, 2024. relevant products involving internet property insurance business will be removed from the company's own platform, the agency's own platform and other channels, and sales will be suspended. the resumption time will be notified separately.

"this is a normal disclosure in accordance with the regulatory system," an industry insider told reporters. the regulatory system he was referring to was the "notice" issued recently.

according to the content of the "notice", the entry requirements for property insurance companies other than internet insurance companies to carry out internet property insurance business are, namely, the comprehensive solvency adequacy ratio is not less than 120% for the last four consecutive quarters, and the core solvency adequacy ratio is not less than 75%; the comprehensive risk rating is b or above for the last four consecutive quarters; and other conditions stipulated by the state administration of financial supervision.

the notice requires that internet insurance companies carrying out internet property insurance business should comply with the relevant conditions of the internet insurance business supervision measures, and their solvency and comprehensive risk ratings at the end of the previous quarter should meet the above indicators. property insurance companies that do not meet the above operating conditions should immediately stop carrying out new internet property insurance business. if they meet the requirements after rectification, they can resume carrying out new internet property insurance business.

some insurance companies have not yet issued relevant announcements

a reporter from the "daily economic news" noticed that the above-mentioned property and casualty insurance institutions that announced the suspension of their internet business were all institutions that failed to meet the relevant requirements of the "notice".

taking bohai property & casualty insurance as an example, at the end of the second quarter of 2024, bohai property & casualty insurance's core solvency and comprehensive solvency adequacy ratios were 99.84% and 158.9% respectively, while at the end of the first quarter they were 95.51% and 154.82% respectively. in terms of comprehensive risk rating, the comprehensive risk rating was c in both the fourth quarter of 2023 and the first quarter of 2024.

however, some institutions have not yet disclosed relevant notices. according to the "regulations on solvency management of insurance companies", insurance companies must meet the requirements of a core solvency ratio of no less than 50%, a comprehensive solvency ratio of no less than 100%, and a comprehensive risk rating of b or above to be considered as qualified institutions.

according to the second quarter solvency report, there are eight property and casualty insurance companies whose latest comprehensive risk rating did not meet the standards, namely anxin property and casualty insurance, huaan insurance, bohai property and casualty insurance, qianhai united property and casualty insurance, everest property and casualty insurance, dubang insurance, anhua agricultural insurance, and fude property and casualty insurance.

this means that some institutions have not yet issued relevant notices. however, the notice also gives insurance institutions a certain amount of time to rectify and give a transition period to property insurance companies that have already carried out internet property insurance business. property insurance companies should promote rectification on the basis of effectively protecting the legitimate rights and interests of financial consumers and fully comply with the requirements of this notice before december 31, 2024.

property insurance companies that meet the requirements after rectification can resume new internet property insurance business. property insurance companies that resume new internet property insurance business should report to the financial regulatory bureau or its dispatched agencies responsible for daily supervision 20 working days in advance, and actively disclose relevant information on their official websites, self-operated online platforms, and self-operated online platforms of entrusted insurance intermediaries, and strengthen public opinion monitoring, response and disposal.

in the later stage, reporters from the "daily economic news" will continue to pay attention to the rectification progress of internet property and casualty insurance business and report on relevant content in a timely manner.

daily economic news