Internet Insurance Brews New Rules, Partial Products Or Liberalized Regional Restrictions

Under the background of the surging Internet Financial wave, Internet insurance, which has been guided by the free growth while receiving windows, will be regulated.

In December 10th, the CIRC formally consulted public opinions on the Interim Measures for the supervision of Internet insurance business (Draft) (hereinafter referred to as "Interim Measures").

The China Insurance Regulatory Commission (hereinafter referred to as the CIRC) said that the interim measures were formulated to regulate the operation of Internet insurance business, protect the legitimate rights and interests of insurance consumers, and promote the healthy and sustainable development of Internet insurance business.

The Interim Measures regulate the operation of Internet insurance from aspects of management principles, business areas, information disclosure, operation rules, supervision and management.

Many insurance insiders believe that this method is of great significance for the development of the Internet insurance standard. The Internet insurance business has been supervised and supervised by the side of the trial. The formulation of the interim measures has made the Internet insurance operation clear and standardized.

The China Insurance Regulatory Commission has been right.

The draft regulations on insurance business and the Internet insurance related issues of personal insurance companies were released.

But the real implementation is only issued in September 20, 2011 issued the "insurance agents, brokerage companies Internet insurance business supervision (Trial)".

Compared with the above trial methods, the main object of the regulation is mainly to insurance agents and brokerage companies. The interim measures will expand the specification target to the entire Internet insurance business, including insurance companies relying on Internet and mobile communications technology, through self operated network platform, third party network platform, and other insurance contracts and insurance business.

One of the most important aspects of the approach is that some Internet insurance products can break through the regional restrictions on the branches of insurance companies.

According to the interim measures, insurance companies can expand their business areas to provinces, autonomous regions, or municipalities directly under the central government without the establishment of branch offices, including personal injury insurance, regular life insurance and ordinary life-long life insurance; the insured or the insured's personal property insurance, liability insurance, credit insurance and guarantee insurance; and can independently and completely realize the property insurance business of selling, underwriting and settling whole process services through the Internet;

Other types of insurance stipulated.

In addition to the "green light" of the above insurance products, the Interim Measures also specifically propose that: for the personal insurance products and motor vehicle insurance products with high cash value, the business area can not be extended to provinces, autonomous regions or municipalities directly under the central government without setting up branches.

At the same time, it is proposed that the insurance company should not make a subsidiary company to the insured, the insured, the beneficiary or the province, autonomous region, municipality directly under the central government or the insurance company where the insurance object is located. The insurance institution should make clear hints about its possible service failure and time lag when selling, requiring the insured to confirm and retain the confirmation record.

The Interim Measures also set the entry conditions and business scope for the self operated network platform and the third party network platform for the development of Internet insurance business.

For example, it requires the third party network platform to have the license issued by the competent department of the Internet industry, or to complete the website registration in the Internet industry department, and the website access is in People's Republic of China; it has the real-time processing capability of supporting the online business of inquiry, insurance, payment and other insurance business.

The Interim Measures also explicitly require

We should strengthen the safety management of business data to ensure the safety, authenticity, accuracy and integrity of the paction data and information related to Internet insurance business.

Insurance companies should choose insurance products suitable for Internet characteristics to carry out operation, and use Internet technology and data analysis technology to develop new products that meet the needs of the Internet economy. They must not violate the basic principles of social ethics, insurance and related regulatory requirements.

Unauthorized authorization of branches to launch Internet insurance business; cooperation with third party network platforms that do not meet the requirements of this regulation; causing loss of paction data or leakage of customer information and serious circumstances; failing to disclose information or prompting and misleading publicity in accordance with the provisions of the measures will not have the conditions for the development of Internet insurance business.