Guarantee Corporation Situation Constantly Insurance Companies Prudent Underwriting

Recently, the first overdue project of Ali's treasure platform has aroused heated debate.

In the evening of October 28th, the company announced that after the consultation with the loan companies, the pushing banks and the guarantee institutions, the principal and interest of the overdue project involving a scale of up to 122 million yuan had been returned.

However, after the end of the seemingly incident, the market's doubts about the role of the guarantee agency and the third party's "burden but not protection" have not dissipated.

At present, many P2P platforms are looking for stronger insurance companies or Guarantee Corporation and other three party institutions to guarantee or provide credit insurance. However, after the project overdue, the third party organizations appear to be "not guaranteed", and the ability of the platform's own funds to meet the challenges is also facing severe tests.

Such incidents happen frequently, and disputes between platforms and guarantee parties are also increasing. Investors are doubtful about the security of the third party guarantee mode.

Insurance companies related to analysis, at present, insurance companies to develop for the P2P platform to provide guarantees to increase credit insurance business, business scale expansion is relatively radical, the underlying assets quality risk assessment is insufficient, for the industry has laid a big hidden trouble.

The P2P industry said, for the Internet financial platform, the third party guarantee participation projects will not weaken the probability of project risk, and need to carefully select qualified guarantee institutions.

In addition, the industry needs to make a guarantee pformation as soon as possible, and improve the risk management mechanism.

At present, the network loan platform seeks more cooperation between the third party guarantee institutions, and the credit enhancement mode is more diversified, but there are many risk factors. From the platform itself, the guarantee institutions may have less qualification or strong correlation, which results in the platform guarantee only serves as a credit enhancement function, but it can not provide guarantee. From the guarantee agency, some Guarantee Corporation's guarantee amount will often exceed the scale of the company's capital and the situation of high leverage guarantee.

"There are also many net loan platforms that have Guarantee corporation or third party guarantees, but guarantee strength is not matched with risks, and there are many loopholes in risk control."

The above P2P platform personages reflect.

The investment bank analysts said that many insurance companies are willing to participate in the P2P platform credit guarantee. The starting point is that the qualification of loan assets is strictly audited. At the same time, some collateral is mortgaged, and its standards will also be strictly assessed according to the strict assessment of the borrower's assets by banks, and the standards will not be weakened.

However, it is not ruled out that in the process of cooperation between the P2P and the third party guarantee institutions, there is a lack of Guarantee corporation qualification and a limited exposure.

According to the insiders, according to the Interim Measures for risk management of small and medium enterprises financing guarantee institutions, the guarantee liability of guarantee institutions generally does not exceed 5 times the actual paid capital of the guarantee institutions, and the maximum amount does not exceed 10 times.

However, the P2P platform guarantees multiple breakthroughs of 10 times the warning line is the norm in the industry. Once the systemic risk occurs, the net loan platform will be dragged down.

"Whether there is guarantee is not the only indicator to choose financial products.

The most important factor is the investment risk and the safety of the underlying assets.

A senior manager of an insurance company in Beijing believes that there is a certain rate of bad debt in the mature banking system of the wind control system. Moreover, many Internet financial platform's bond assets are mostly "abandoned food" of the mainstream financial institutions such as banks, and their risks are essentially similar to junk bonds. The bad debt rate of such assets is higher than that of banks.

"The peak of the current industry payment has not yet arrived, and the financial products default incidents happen frequently. The third party guarantee mode does not mean low risk."

"No matter who endorsement, there is no one hundred percent security. The key is the risk control ability of the platform itself, which is also the core criterion for investors to be cautious in screening."

Zhu Mingchun said that for the current third party guarantee mode, investors can not rely entirely on the standard of such supplementary endorsement, and need careful choice. For the platform, while concentrating on the risk control of the platform business, it is also necessary to explore a reasonable third party guarantee mode and improve the risk management mechanism in order to standardize the Internet financial industry step by step under the trend of "de guarantee" of the industry.

Due to its backing from Alibaba group, since 2014, the scale of pactions has increased rapidly, and the paction dynamics of its platform has attracted the attention of all parties.

Official data show that up to October 29th, the total volume of pactions reached 353 billion 936 million yuan.

The event of the billion dollar overdue event has naturally become a hot topic.

In the early morning of October 28th, the official forum of recruiting treasure issued a sticky note to respond to a recent overdue project on the platform.

It is reported that the principal and interest involved in overdue projects involve a total of 700 million yuan, which was due to expire in October 22nd. After paying 578 million yuan of principal and interest, the remaining 122 million yuan was not paid back.

In the evening of October 28th, the treasure again announced that after the negotiation between the platform and the financing enterprise, the project sponsor and the guarantee insurance agency, all the principal and interest of the project will be reimbursed by 122 million yuan.

According to the announcement, in addition to the interest rate agreed upon at the original agreement, the investor will receive an extra interest compensation in addition to the interest rate stipulated in the original agreement.

The long and overdue turmoil has left investors with no danger.

Although the overdue events have been satisfactorily resolved from the aspect of recruiting treasure, some investors have begun to notice that the role and role of the credit enhancement agencies in the process of handling these overdue projects are not significant.

Some investors have questioned that in the process of dealing with overdue projects, the credit agencies of the project did not provide advance compensation for the contract, and finally the borrowers repay their principal and interest. Whether the third party guarantee of the project has a "false" or "no insurance" situation; if the borrower is unable to repay the debt, will the guarantor have the ability to repay it?

The product description indicates that the borrower must import the loan principal and interest into the Alipay standby account on the 3 working day before the expiry date. If the overdue period occurs, the credit agency will import the principal and interest into the reserve account within two working days after the expiry date, and then recover it to the enterprise.

In this regard, the return of the inviting treasure said

Active repayment, so the Guarantee Corporation did not first repay the funds. The lender and Guarantee Corporation agreed that the repayment of residual principal and interest by the borrower was the most efficient way.

P2P industry analysis, the event of public opinion has great influence on the event, the company may need to find a more efficient way to repay the principal and interest, to solve the problem of investors' greatest concern, and therefore did not make the Guarantee corporation pay first in accordance with the contract.

Ying can group executive vice president, net loan home co founder Zhu Mingchun said, in accordance with the normal overdue project processing procedures, in the third party guarantee mode, the borrower after overdue, Guarantee Corporation first compensate, if Guarantee corporation does not make the best effort, then the platform itself funds as a guarantee, and then to the enterprise recovery.

The ordinary project will remind the borrower to repay the loan two days before repayment. The day before the fund needs to be paid, the total processing time will take longer.

"Sometimes the platform needs to see the financing ability of borrowing enterprises, and the ability to raise funds is strong, so it is not necessary to guarantee the enterprises to speed up the repayment of principal and interest through the guarantee enterprises, and it does not take too long."

He said.

However, at present, many P2P platforms take the three party organizations such as insurance companies or Guarantee Corporation to guarantee additional credit, but after the project overdue, the credit rating agencies appear to be "not guaranteed".

Such incidents happen frequently, and disputes between platforms and guarantee parties have begun to increase. Investors have begun to question the security of the third party guarantee mode.

"Due to the policy requirements of the Internet financial industry, many platforms need to be pformed now to return to the role of information intermediaries. Net loan platforms often seek cooperation between the three party partners, such as insurance companies and Guarantee Corporation, to provide certain credit services for the platform, which is also the main way to retain customers."

The P2P insiders said.

About promotion in July of this year

The guidance of healthy development stipulates that the P2P platform itself can not provide guarantee for investors.

"There are two directions for the general platform to seek third party guarantees. On the one hand, it is to find more closely related organizations or related institutions as collateral parties. The affiliated guarantee Party has stronger strength, stronger binding force and relatively relatively effective project guarantee. On the other hand, it is looking for Guarantee Corporation with a willingness to cooperate. However, due to the lack of relevance or binding force, or the difference in the qualification of the guarantor, there may be some unwarrantable situation."

Zhu Mingchun said that this year's P2P platform or cash payment difficult financial products have many secured projects, but there are indeed Guarantee corporation operations poorly, joint guarantee financial products default, cooperation trust, private placement and P2P platform has been implicated in the case.

"For example, after the bankruptcy of the Hebei investment company, there were more than 100 cooperative agencies, with a guarantee amounting to tens of billions of dollars.

This also means that the secured financial products are not completely safe, and ultimately need to see the financial strength of the guarantee institutions. If there is no strong binding force, there will be a breach of the agreement.

It is worth noting that

In the process of cooperation between the platform and the third party guarantee institutions, insurance companies are also gradually appearing.

According to incomplete statistics of net loan home, as of the end of July 2015, a total of 43 P2P net loan platforms and insurance companies were engaged in credit cooperation.

Among them, the number of cooperation platforms in the first half of 2015 amounted to 18, which has surpassed the total number of cooperation platforms with insurance companies last year.

In July alone, 9 new P2P platforms were introduced to cooperate with insurance companies.

Prior public information also showed that, including Zhong An insurance, China Life Insurance, sunshine insurance, Huaan insurance, Pacific and other insurance companies have been testing the water P2P platform cooperation.

For insurance companies to intervene in the P2P platform project guarantee, there are market people also put forward worries.

An international rating agency analyst said that the current financing market, whether personal loans, corporate loans or private debt, has different requirements for the issuer's net assets, income and profitability threshold, and every financing may be undertaken by the guarantee agency.

"If the operation of Guarantee Corporation is wrong, the capital chain will be broken, and the risk may be pferred directly to the cooperative insurance company.

If the premium charged by these insurers can not cover their risk losses, the insurance company may suffer huge risks and the interests of investors will be difficult to guarantee.

At present, a senior analyst with an international investment bank familiar with the insurance industry says that the insurance companies participating in the P2P platform are mainly classified into several categories: one is to make direct guarantees to investors; if the borrower has overdue or cash payment problems, the two is to make financial insurance for the investment gains and losses; the three is to guarantee risks for the operation of the platform and system security; the insurance companies that currently participate in the first class guarantee are more; the second kind of guarantee for investment gains and losses is relatively small, and the premium is relatively high; while the guarantee of operational risks such as platform capital operation is a small probability item, and the premium is low.

The above investment bank analysts said that the current insurance companies involved in the P2P platform's performance risk and credit risk are all risk guarantees for investors' investment projects, and the insurance companies need to bear joint and several liability. "But now the risk of P2P project credit business is generally higher, and the insurance design is in accordance with the law of large numbers. If the bad debt rate is 10%, then the premium rate design will be over 10%.

For some P2P analysts who believe that there is a low premium rate and can not cover risks, the analysts believe that the third party guarantee institutions are different in terms of risk assessment standards and identification, and are also different from the company's overall strength and qualification. "Some companies have high risk tolerance, but others may not be aware of the risk assessment of P2P projects.

But in general, the total business volume of insurance companies in the P2P project is not large, and the operating cost will be relatively high.

The analysis of the head of a P2P platform in Shenzhen and the cooperation of some platforms and third party guarantee institutions may also enhance the credit and exaggerate the role of the guarantee institutions. For example, some insurance companies only guarantee the technical risks of the platform operation, or the insurance of all personal accidents of the borrowers. Only when the above situations appear, can they ensure the effectiveness of the guarantee, instead of making a "bottom up" for every loan item or platform fund security. "This also obscures the mechanism that the third party guarantee institutions really trigger, to some extent, so that some investors mistakenly believe that the insurance companies or guarantee institutions with strong platforms can guarantee that the investment rights and interests will not be lost."