On September 1, the official website of the China Banking and Insurance Regulatory Commission (CBRC) issued a "Relevant person in charge of the relevant departments of the CBRC answers reporters' questions on the solvency supervision to guide the insurance industry to serve the real economy and support the development of the capital market."

China Banking and Insurance Regulatory Commission: The second generation of the second phase of the compensation project for insurance investment banking stocks, blue-chip stocks and other preferential policies! At the end of the second quarter, insurance capital invested about 790 billion yuan in the 300 constituent stocks of Shanghai and Shenzhen

In December 2021, the China Banking and Insurance Regulatory Commission issued the "Insurance Company Solvency Regulation Rules (II)" (referred to as "Rule II", also known as the "compensation second generation Phase II project"), which has been implemented since 2022. The person in charge of the relevant departments of the Banking and Insurance Regulatory Commission said that from the implementation of the first half of this year, Rule II has improved the risk sensitivity and effectiveness of regulatory indicators, and achieved positive results in guiding the insurance industry to serve the real economy and support the development of the capital market.

We will support the insurance industry in maintaining the sound and steady development of the capital market

Rule II gives preferential policies to insurance capital investment in bank stocks, large-cap blue chip stocks and publicly offered infrastructure securities investment funds (public REITs), supports the insurance industry to participate in the capital market reform, and maintains the healthy and stable development of the capital market.

First, support insurance companies to invest in blue-chip stocks. Rule II The 300 constituent stocks of insurance companies in Shanghai and Shenzhen allow their minimum capital to be measured at 95% to support the smooth operation of the capital market. Under the guidance of policy support, as of the end of the second quarter of this year, the insurance industry had invested a total of about 790 billion yuan in the 300 component stocks of Shanghai and Shenzhen, saving the minimum capital of 13.8 billion yuan, which strongly supported the smooth operation of the capital market.

Second, support insurance companies to invest in publicly offered infrastructure securities investment funds (public offering REITs). Rule II for insurance companies to invest in public REITs, allowing the minimum capital to be measured according to the proportion of 80%, in order to support the development of capital market reform. As of the end of the second quarter of this year, the insurance industry has invested about 7 billion yuan in public offering REITs, accounting for about 13% of the total scale of public offering REITs, and is an important institutional investor. The above policies saved the minimum capital of insurance companies of about 720 million yuan, which strongly supported the insurance industry's participation in the reform and development of the capital market.

Moreover, support and encourage insurance companies to invest in bank stocks. Rule II For long-term banking equity investments invested by insurance companies, if the dividend rate meets certain conditions, impairment requirements can be exempted, allowing insurance companies to use their book value as recognized value. This policy supports insurance companies to hold listed bank stocks for a long time and maintain the healthy development of the capital market.

Rule II enhances the quality and efficiency of serving the real economy

The person in charge said that Rule II is an important measure for the CBRC to implement the spirit of the fifth National Financial Work Conference and make decisions and deployments to prevent and resolve major financial risks. Rule II construction work started in September 2017, in order to guide the insurance industry to return to the source of protection, focus on the main business, enhance the ability to serve the real economy, effectively prevent risks in the insurance industry, and accelerate the comprehensive opening up of the financial industry as the goal, the original solvency regulation rules were comprehensively optimized and upgraded.

In terms of guiding the insurance industry to serve the real economy, Rule II provides a number of support policies for green bonds, scientific and technological innovation, export credit insurance, agricultural insurance and pension insurance, effectively promoting the insurance industry to enhance its ability to serve the real economy and enhance the quality and efficiency of serving the real economy.

The first is to guide insurance companies to support scientific and technological innovation. Rule II allows professional science and technology insurance companies to measure the minimum capital of insurance risk according to the proportion of 90%, guiding them to better serve the field of science and technology and implement the concept of innovative development. This policy can significantly save the minimum capital of professional science and technology insurance companies, improve their solvency adequacy ratio, as of the end of the second quarter of this year, to support the company to provide more risk protection for the science and technology sector of 2.1 billion yuan

Second, we will encourage the development of exclusive commercial endowment insurance. Rule II allows the minimum capital of longevity risk of captive commercial pension insurance products to be measured at a proportion of 90%, which strongly supports the development of the third pillar pension insurance. As of the end of the second quarter of this year, the insurance industry's exclusive commercial endowment insurance products achieved premiums of about 2.2 billion yuan, and showed a rapid growth trend.

Third, support insurance companies to invest in green bonds. Rule II allows the minimum capital of green bonds invested by insurance companies to be measured at a ratio of 90%, guiding the insurance industry to implement the concept of green development, and effectively enhancing the enthusiasm of insurance companies to invest in green bonds.

Fourth, we will support the development of agricultural insurance business. Rule II allows insurance companies to measure the minimum capital of insurance risk of agricultural insurance business at a ratio of 90%. At the end of the second quarter of this year, the policy saved the minimum capital of the insurance industry of about 2.7 billion yuan, which can support the insurance company to provide more risk protection for "agriculture, rural areas and farmers" of about 420 billion yuan, and effectively implement the decision and deployment of "safeguarding food and energy security".

Fifth, we will support the development of export credit insurance and overseas investment insurance. Rule II supports policy medium - and long-term export credit insurance, overseas investment insurance, etc., allowing the minimum capital of insurance risk to be measured at a ratio of 90%. According to the data calculated at the end of the second quarter of this year, the policy can support insurance companies to provide more risk protection for China's exports and overseas investment of about 240 billion yuan, and effectively implement the decision and deployment of stable foreign trade.

The person in charge said that in the next step, the CBRC will continue to improve the solvency regulatory standards, deeply implement the new development concept, strengthen the policy orientation, and continuously enhance the ability of the insurance industry to serve the overall economic and social situation on the basis of scientific and effective risk prevention and control. We will continue to support the development of commercial pension services. According to the characteristics and actual development of commercial pension business, research and formulation of solvency preferential policies, reduce the company's capital occupation, support the insurance industry to carry out commercial pension business, and promote the healthy development of the third pillar pension insurance. For the investment assets formed by insurance capital support and the implementation of national strategic decisions and deployments, research and clarify their definition standards and preferential policies, reduce their minimum capital requirements, and enhance the ability of the insurance industry to serve the overall situation.