The report of the Party's 20th National Congress pointed out that the construction of a modern industrial system. We will continue to focus our economic development on the real economy, advance a new type of industrialization, and accelerate the building of a strong manufacturing, quality, space, transportation, cyber, and digital China.

Guo Shuqing, secretary of the Party Committee of the People's Bank of China and Chairman of the China Banking and Insurance Regulatory Commission, recently mentioned in the article entitled "Strengthening and Improving modern financial supervision" published in the "Guidance Reader of the Party's 20 National Congress Report" that comprehensively strengthen the ability of financial services to the real economy, improve the financial support for innovation system, and increase the medium and long-term financial support for advanced manufacturing and strategic emerging industries. We will improve the inclusive financial system, improve the financial supply of small and micro enterprises and agriculture, rural areas and farmers, raise the level of financial services for new citizens, and consolidate and expand the achievements of financial poverty alleviation.

How hot is the insurance industry serving the real economy? Insurance institutions continue to make efforts in the fields of strengthening manufacturing risk protection, serving rural revitalization and green and low-carbon transformation, fully reflecting the precision of "watering" the real economy. According to statistics, in the first three quarters of this year, the balance of insurance funds used reached 24.5 trillion yuan, an increase of 9.3%. The amount of environmental pollution liability insurance risk protection increased by 29.2% year on year; The amount of risk protection provided by agricultural insurance reached 3.6 trillion yuan.

We will strengthen support for the manufacturing sector

Manufacturing is the foundation of the country and the foundation of a strong country. In the manufacturing industry, major technical equipment is related to the national strategic security and the lifeline of the national economy. In recent years, insurance companies have continuously increased their independent innovation efforts, and promoted the transformation and application of manufacturing innovation achievements by carrying out the first (set) major technical equipment insurance and the first batch of application insurance for new materials, and cracked the "stuck neck" problem.

State Power Investment Yuanda Environmental Protection Engineering Company is one of the leading enterprises in China's industrial flue gas comprehensive treatment, catalyst manufacturing and other fields. Through technical means, the enterprise carries out desulfurization and denitrification treatment of coal flue gas, and efficiently solves the problem of ultra-low emission transformation of enterprises. However, the cost of this renovation project is not low, and some problems will inevitably occur during the use of the new system.

After learning of this situation, PICC Chongqing Branch and State Power Investment Yuan Da Environmental Protection Company signed the first major technical equipment insurance agreement (set), so that the enterprise to eat the "reassurance".

"The first (set) insurance compensation mechanism for major technical equipment has dispersed the risks of manufacturers and users, and also provided strong support for improving the core competitiveness of the product industry." State power investment far up environmental protection engineering company financial director Li Wei said. At present, Yuanda Environmental Protection's ultra-low emission flue gas transformation equipment has received a total of 5.26 million yuan of financial subsidies from Chongqing for two consecutive years, and the core competitiveness of the enterprise is constantly increasing.

Industry experts said that insuring the first set (set) insurance can not only transfer the quality risk and liability risk of enterprise products, for the first set (set) of major technical equipment products that have been insured, production enterprises can also replace the quality guarantee with insurance in business negotiations, accelerate the recovery of sales payments and capital turnover, and reduce the operating costs of enterprises. With the insurance cover, enterprises are more confident to bring new technologies and new equipment to the market, constantly improve product quality according to user needs, and promote follow-up innovation and research and development.

In addition, insurance funds have the characteristics of large scale, long term, low cost and stable source, and can meet the capital needs of the real economy, especially the manufacturing industry, in a market-oriented way through investment in equity, bonds, asset management products and other forms.

Bai Tao, Secretary of the Party Committee and Chairman of China Life Insurance, said that China Life gives full play to the long-term investment advantages of insurance funds, innovates the use of insurance funds, and supports "two new and one heavy", strategic emerging industries, scientific and technological innovation, green transformation and other diversified investment methods through industrial direct investment funds, equity investment plans, debt investment plans, alternative asset management products. Inject "living water" of long-term capital into economic and social development. By the first half of 2022, the scale of direct investment in the real economy has exceeded 3.6 trillion yuan

Sunshine Insurance also disclosed recently that since the establishment of the company to the end of September this year, the cumulative risk protection to support the real economy has provided more than 240 trillion yuan, providing financial support of more than 340 billion yuan. Among them, more than 12 trillion yuan of risk protection has been provided for the manufacturing industry, and the investment amount has reached 17.1 billion yuan.

Focus on weak links in key areas

Since the beginning of this year, the insurance industry has focused on key areas and weak links in the economy, especially for small and micro enterprises, "agriculture, rural areas and farmers", individual industrial and commercial households, and new citizens to enhance security services, and effectively promote common prosperity.

Baodlong Company is located in Tianchang City, Anhui Province, the main metal shelves and accessories production and sales of small and micro enterprises. In June last year, Baudron company exported a batch of storage shelves to Australia, but the buyer has been on the grounds of product quality arrears in payment, resulting in greater economic losses for the company. After receiving the application, China Credit Insurance quickly launched a claim investigation, from the company's claim to China Credit insurance issued a notice of compensation, only 28 days, in a timely manner to alleviate the urgent needs of the enterprise's production and operation.

According to the head of the relevant departments of the Banking and Insurance Regulatory Commission, in the first three quarters of this year, the coverage of China's export credit insurance expanded, and the number of small and micro foreign trade enterprises insured with export credit insurance reached 153,000, an increase of 14.1%. The amount of short-term insurance insured increased by 16.5% year-on-year, which strongly supported the stabilization of foreign trade.

When the countryside prospers, the country prospers. The report of the 20th National Congress of the Communist Party of China pointed out that the most arduous and onerous task of comprehensively building a modern socialist country is still in the countryside. To promote industry, insurance and increase income, insurance institutions have generally established a whole-process industrial assistance model from prenatal financing to risk control during production, and then to post-natal platform marketing. A people's livelihood security system has been established, and insurance companies have launched comprehensive security programs, including relief for agricultural natural disasters, medical assistance, education assistance, relief for housing and family property losses, serious illness benefit assistance, chronic disease assistance, and bottom-line supplementary assistance, extending service coverage to urban and rural low-income groups, and effectively consolidating the achievements in poverty alleviation.

For new citizens and individual industrial and commercial businesses, the insurance industry focuses on the task of ensuring employment and ensuring people's livelihood, responding to their needs in entrepreneurship and employment, housing, education and training, medical and old-age security, and strengthening product innovation and increasing security. A number of insurance companies have actively developed a series of innovative financial products suitable for the needs of new citizens, combining accident insurance, home property insurance, liability insurance, etc., to provide a package of comprehensive protection for new citizens and create a convenient and perfect overall risk solution.

In the view of Dong Bo, president of the Insurance Society of China, all over the country vigorously develop inclusive insurance, mainly serving small and micro enterprises, farmers, urban low-income people, poor people and disabled people, to a greater extent, expand the coverage of insurance, but inclusive insurance products in the breadth and depth of protection and mature insurance products there is still a certain gap. In our country, the flexible employment personnel still have the problem of lack of protection.

"In the future, we should also focus on the development of inclusive medical care, inclusive health and other insurance products, especially for rural areas and farmer groups, and develop insurance products for flexible employment groups, especially individual commercial pension insurance." We also need to bring into play the role of the third distribution of insurance to narrow the income gap." Dong Bo said.

Continue to increase the green and low-carbon transformation

Vigorously developing green finance is an inherent requirement for the high-quality development of financial service economy. Since the beginning of this year, the China Banking and Insurance Regulatory Commission has successively issued the "14th Five-Year Plan for Standardization of the Insurance Industry" and the "Green Finance Guidelines for the Banking and Insurance Industry", supporting the insurance industry to explore and develop innovative green financial products, increasing support for green, low-carbon and circular economy, and promoting the comprehensive green transformation of economic and social development.

The reporter noted that at present, a number of insurance institutions are focusing on forest carbon sink insurance innovation, providing insurance protection for forest carbon sequestration capacity, forest damage restoration costs and carbon emission rights trading value, and providing whole-process risk management services for forest early warning, medium-term loss assessment and later compensation payment.

For example, in Hubei Province, Ping An Property Insurance provided 2.05 million yuan of risk protection for 28,000 mu of state-owned Xiangqiao Forest Farm in Qichun County, and indexed forest losses caused by various accidental disasters into carbon sink losses, carbon sink detection through satellite remote sensing technology, and obtained data as a basis for claims. If the actual carbon sink value does not reach the agreed target value at the end of the insurance period, it will be regarded as insurance liability, and the insurance company will pay compensation.

In Yu Village, Anji, Zhejiang Province, the birthplace of the "Two Mountains" theory, CPIC launched the first single carbon sink recovery compensation insurance for bamboo carbon sink, which effectively prevents the natural disaster of bamboo planting from reducing carbon sink and stabilizes the supply of forestry carbon sink.

For the traditional environmental pollution liability insurance, 31 provinces (autonomous regions) in China have carried out pilot work, set up four green insurance innovation laboratories, and the number of insured enterprises is still increasing. As of August this year, a total of 178 environmental pollution liability insurance products had been issued by 39 insurance institutions.

The development of green industry cannot be separated from the irrigation of "living water" of capital. At present, large insurance companies are carrying out a comprehensive layout in many new energy segments such as new energy vehicles, energy storage, photovoltaic, and wind power. Recently, China Life and CRRC signed a strategic agreement to jointly establish the National Life CRRC New Energy equity Investment Fund. Picc Capital participated in the leading investment of GAC Ea 'an A round of financing, which set a record for the largest single private financing in the domestic new energy vehicle industry, with a total financing of 18.294 billion yuan.

According to the statistics of the China Insurance Industry Association, from 2018 to 2020, the insurance industry has provided a total of 45.03 trillion yuan of green insurance protection for the whole society, and paid 53.377 billion yuan in claims, effectively playing the role of risk protection. The stock of insurance funds used for green investment increased from 395.4 billion yuan in 2018 to 561.5 billion yuan in 2020, with an average annual growth of 19.17%.

For how insurance can better serve the green and low-carbon transition, Zhu Junsheng, research director of the China Insurance and Pension Research Center at Tsinghua University's Wudaokou School of Finance, said that on the debt side, the insurance industry can support green development and renewable energy development by playing functions such as risk compensation and disaster prevention and reduction. On the asset side, the characteristics of insurance capital are highly matched with the characteristics of the capital demand of the green industry. The insurance industry can give full play to its advantages of large scale and long term insurance capital, and provide long-term and stable financial support for strategic emerging industries, low-carbon and energy-saving industries, clean production industries, clean energy and renewable energy industries through debt plans, equity plans, insurance private equity funds, etc. Meet the direct financing needs of green industries.

Source: Nanfang Daily