China Fund News Chenxi Comprehensive summary
The 15th Lujiazui Forum is in full swing, and Li Yunze has made a big statement!
On the morning of June 19, at the opening ceremony of the 2024 Lujiazui Forum, Li Yunze, director of the State Financial Supervision and Administration Bureau, gave a speech titled "Promoting the high-quality development of the insurance industry and supporting China-style modernization".
Mr. Fund will sort out the key points of Li Yunze’s speech for you as follows:
• The insurance industry has great potential to serve China-style modernization. From the perspective of financial structure, the assets of the insurance industry only account for 7% of the total assets of my country's financial industry, while the international average level is around 20%. Accelerating the development of the insurance industry will help improve the financial market structure, optimize the allocation of financial resources, and enhance the stability of the financial system.
• Promote the insurance industry to achieve high-level technological self-reliance and accelerate the improvement of the insurance product system covering the entire life cycle of technological enterprises. Increase the support of insurance funds for strategic emerging industries, advanced manufacturing, new infrastructure, and venture capital investment.
• Improve the green financial evaluation mechanism, promote the “insured coverage” of new energy vehicles, and encourage insurance institutions to strengthen risk protection and financial support for green industries, green consumption, etc.
• Accelerate the completion of shortcomings in the third pillar and vigorously develop commercial insurance annuities. Tailor-made insurance products are designed for new citizen groups and flexible employment personnel such as couriers and online ride-hailing drivers.
• Carry out an action to eliminate deficiencies and improve the quality of insurance intermediaries, comprehensively deepen bancassurance cooperation, explore pilot insurance agency pilots for high-quality non-bank financial institutions, and continue to improve the standardization, professionalization and convenience of sales services.
• Strengthen countercyclical supervision, improve solvency and reserve regulations, and expand capital replenishment channels. Promote insurance institutions to strengthen the overall coordination of assets and liabilities and integrate them into all links of the entire operation and management chain.
• Further improve the pricing mechanism of insurance products, guide insurance institutions to adjust product structures, and effectively prevent the risk of spread losses. Promote insurance institutions to adhere to long-term investment, stable investment, and value investment, explore and carry out long-term assessment, and strive to build core competitiveness.
• Accelerate the promotion and improvement of the financial rule of law, improve the policy support system, and study and issue guidance to promote the high-quality development of the insurance industry. We will continue to optimize the layout of insurance institutions and accelerate the reform and de-risking of high-risk institutions.
• Steadily expand institutional opening-up, study to broaden the scope of foreign shareholders of non-bank financial institutions, encourage qualified foreign-funded institutions to participate in various business pilots, and support foreign-funded institutions in China to deeply explore China and operate steadily.
• The General Administration will work with the Shanghai Municipal People's Government to issue implementation opinions on accelerating the construction of the Shanghai International Reinsurance Center. Actively explore the pilot investment of insurance funds in gold contracts and related products of the Shanghai Gold Exchange, relax restrictions on non-resident M&A loans in the Lingang New Area, encourage China Insurance Investment Company to better utilize the long-term investment function of insurance funds in Shanghai, and support more foreign financial institutions in Landed in Shanghai.
The following is the full text of Li Yunze's speech -
Promoting high-quality development of the insurance industry and assisting Chinese-style modernization
- Li Yunze's keynote speech at the opening ceremony of the 15th Lujiazui Forum
Dear Secretary Ji Ning and Mayor Gong Zheng,
Dear President Xie Jiezhen,
Dear Director Wang Jiang, President Pan Gongsheng, Chairman Wu Qing, Director Zhu Hexin,
Distinguished guests, ladies, gentlemen, and friends:
Good morning everyone!
is very happy to participate in the 15th Lujiazui Forum. At present, the world economic situation is still complex, and stable growth faces many challenges. The theme of this forum is "Promoting world economic growth through high-quality financial development", which has strong practical significance and will surely build greater consensus and gather more wisdom for promoting world economic recovery.
When the last Lujiazui Forum was held, the State Administration of Financial Supervision had just been listed. Over the past year, we have adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implemented the decisions and arrangements of the Party Central Committee and the State Council, and conscientiously carried out various tasks of preventing risks, strengthening supervision, and promoting development.The systemic institutional reform of the General Administration has been steadily implemented, the "four-level vertical management" regulatory structure has been formally formed, the construction of regulatory systems has been accelerated in an all-round way, the reform of small and medium-sized financial institutions has been advanced in an orderly manner, risks in key areas have gradually converged, and the quality and efficiency of financial services to the real economy have continued to improve. Horizontal opening up to the outside world was further expanded. These achievements cannot be achieved without the strong support of relevant departments in various places, as well as the care and help from all walks of life! Here, on behalf of the State Administration of Financial Supervision, I would like to express my heartfelt thanks!
Ladies and gentlemen, friends!
Since the beginning of this year, China's economic growth has continued to lead among the world's major economies, continuing to demonstrate "stable" confidence, "new" vitality, "big" potential, and "strong" resilience. The basic long-term positive trend of China's economy has not changed, and the factors and conditions supporting high-quality development have not changed. China's economy remains an important engine for stable growth of the world economy. When the economy is prosperous, finance is prosperous; when finance is stable, the economy is stable. The banking industry, the securities industry, and the insurance industry are all important forces in promoting economic and social development. Each has its own strengths, and they will inevitably develop their strengths in the process of realizing Chinese-style modernization. Shanghai is the birthplace of China’s modern insurance industry and has witnessed the tremendous changes in China’s insurance industry over the past century. I would like to take this opportunity to share three preliminary insights on how the insurance industry can better serve China-style modernization.
1. The insurance industry has great potential to serve Chinese-style modernization
The 20th National Congress of the Communist Party of China drew up a grand blueprint for comprehensively promoting the great rejuvenation of the Chinese nation through Chinese-style modernization. As a basic institutional arrangement of the modern market economy, insurance connects all walks of life and is related to the national economy and people's livelihood. It is a powerful means to promote economic development, improve people's livelihood security, and contribute to common prosperity. Insurance originates from mutual assistance and risk sharing, and contains the concept of "everyone for one, one for everyone", which is naturally consistent with the people's nature of financial work. In the process of comprehensively building a modern socialist country, the insurance industry is ushering in a historic opportunity for high-quality development and will play an irreplaceable role.
First, building a solid economic safety net requires high-quality development of the insurance industry. Improving economic resilience, enhancing market vitality, and hedging against cyclical impacts are inseparable from a strong modern insurance industry. From the perspective of financial structure, the assets of the insurance industry only account for 7% of the total assets of my country's financial industry, while the international average level is around 20%. Accelerating the development of the insurance industry will help improve the financial market structure, optimize the allocation of financial resources, and enhance the stability of the financial system. From the perspective of capital supply and demand, insurance funds have long duration and have cross-cyclical attributes. Expanding insurance funds is conducive to cultivating "patient capital", smoothing out economic cycle fluctuations, and promoting a virtuous cycle of "funds-capital-assets". From the perspective of protection scope, the connotation and extension of insurance protection are constantly expanding and enriching. Keeping pace with the times and establishing a comprehensive insurance concept can better provide effective buffers and risk barriers for the steady operation of the economy.
The second is to build a solid social security network, which requires high-quality development of the insurance industry. Insurance is an important component of the multi-level social security system, which is conducive to making up for shortcomings in the field of people's livelihood and enhancing the balance, stability and sustainability of social security. In many countries in the world, ordinary people cannot live without insurance. Some people may not have the habit of saving money, but they generally buy insurance. In the process of implementing the national strategy of Healthy China and coping with the aging of the population, the people's requirements for providing care for the elderly, medical care for the sick, and support for the weak are constantly increasing, and the demand for diversified insurance protection is accelerating. The size of my country's middle-income group continues to expand, the residents' savings rate is high, and the development of insurance protection such as pension and health has obvious advantages and broad prospects.
The third is to build a strong disaster protection network, which requires high-quality development of the insurance industry. Our country has a vast territory and complex and diverse natural environment, making various disasters prone to occur frequently. From natural disasters such as earthquakes and typhoons to safety accidents in construction, transportation and other fields, the insurance industry can effectively reduce the loss of people's lives and property and improve the overall ability of society to resist risks by diversifying risks, settling claims in a timely manner, and promoting prevention. From the global average level, about 40% of the loss compensation for major disasters is borne by the insurance industry, while this proportion in my country is only about 10%.The insurance industry has the potential and ability to play a greater role in improving the national emergency support system.
2. Identify the focus of the insurance industry in serving Chinese-style modernization
If the insurance industry wants to make great achievements in the era of great potential, it must consciously integrate into the overall situation of Chinese-style modernization with a sense of mission and responsibility that time waits for no one, return to its roots, focus on its main business, and strive to write The insurance chapter of the "Five Big Articles" should be done well and effectively play the role of economic shock absorber and social stabilizer.
First, focus on innovative development and serve new quality productivity accurately and efficiently. The distinctive feature of new productivity is innovation. We will promote the insurance industry to achieve high-level technological independence and self-reliance, and accelerate the improvement of the insurance product system covering the entire life cycle of technological enterprises. Improve the "first unit (set), first batch" insurance compensation policy mechanism to better play the role of integrated circuit co-insurance body. Increase the support of insurance funds for strategic emerging industries, advanced manufacturing, new infrastructure, and venture capital investment. Improve the green financial evaluation mechanism, promote the "insured insurance for all you want" for new energy vehicles, and encourage insurance institutions to strengthen risk protection and financial support in green industries, green consumption and other aspects.
The second is to focus on people's livelihood and well-being and better meet people's needs for a better life. At present, agricultural insurance provides insurance protection for 164 million sub-farmer households, and critical illness insurance covers 1.2 billion people. The insurance industry has accumulated more than 6 trillion yuan in pension reserves and more than 2 trillion yuan in long-term health insurance liability reserves. We will speed up the filling of shortcomings in the third pillar and vigorously develop commercial insurance annuities to better meet the people's needs for pension security and wealth management. Actively develop commercial medical insurance, increase the coverage of commercial long-term care insurance, and promote the deep integration of health insurance and health management. Tailor-made insurance products are designed for new citizen groups and flexible employment personnel such as couriers and online ride-hailing drivers. Actively promote the expansion of agricultural insurance, increase products, and improve standards, fully implement full cost insurance and planting income insurance policies for the three major grain crops, and effectively serve the rural revitalization strategy.
The third is to focus on safety emergencies and continue to promote the improvement of social governance efficiency. After the severe floods in Beijing, Tianjin, Hebei and other places last year, the insurance industry paid out early and quickly, paid out all the reimbursements that should be paid, and made every effort to help the affected people and business entities tide over the difficulties and restore normal production and living order as soon as possible. At the beginning of the year, the country’s first comprehensive catastrophe insurance covering all types of disasters was officially launched in Hebei. We will promote and improve the catastrophe insurance protection system involving multiple parties, and guide insurance institutions to give full play to their professional advantages in risk management to prevent disasters beforehand, reduce disasters during the event, and provide disaster relief after the event. Accelerate the development of liability insurance in areas such as environmental pollution and food safety, strengthen the loss compensation and accident prevention functions of production safety liability insurance, solve social problems through market-oriented mechanisms, and help improve the level of public safety governance.
3. Deepen reform and enhance the driving force for high-quality development of the insurance industry
At present, my country’s insurance industry is in the process of climbing over hurdles, transformation and upgrading, and will inevitably encounter some difficulties and challenges. Overall, China's insurance market has huge potential and broad space. We are fully qualified, confident, and capable to use reform to increase vitality, use development to solve problems, and promote the insurance industry to create a new situation and reach a new level.
First, we need to effectively transform the development model and promote cost reduction and efficiency improvement. We will promote the insurance industry to adhere to connotative development, characteristic operations and refined management, and accelerate the transformation from pursuing speed and scale to focusing on value and efficiency. Guide insurance institutions to establish a correct outlook on operations, performance, and risks, improve corporate governance mechanisms, accelerate digital transformation, and improve operation and management efficiency. Enrich product supply, improve guarantee services, and promote better matching of supply and demand. We will make great efforts to reform the sales system, carry out actions to eliminate deficiencies and improve the quality of insurance intermediaries, continue to promote the "integration of reporting and banking", comprehensively deepen bancassurance cooperation, explore high-quality non-bank financial institution insurance agency pilots, and continue to improve the standardization and professionalization of sales services. , level of convenience.
The second is to deeply grasp the law of development and strengthen the linkage of assets and liabilities. Last year, in response to common issues in the industry, we guided the adjustment of insurance product predetermined interest rates and optimized solvency risk factors, achieving positive results.We will strengthen countercyclical supervision, improve solvency and reserve regulations, and expand capital replenishment channels. Promote insurance institutions to strengthen the overall coordination of assets and liabilities and integrate them into all links of the entire operation and management chain. Further improve the insurance product pricing mechanism, guide insurance institutions to adjust product structure, and effectively prevent the risk of spread losses. Promote insurance institutions to adhere to long-term investment, stable investment, and value investment, explore and carry out long-term assessment, and strive to build core competitiveness.
The third is to focus on laying a solid foundation for development and creating a good market environment. We will accelerate the promotion of sound financial rule of law, improve the policy support system, and study and issue guidance to promote the high-quality development of the insurance industry. We will continue to optimize the layout of insurance institutions and accelerate the reform and de-risking of high-risk institutions. Vigorously regulate market order and resolutely safeguard the legitimate rights and interests of financial consumers. Strengthen publicity and popularization to enhance the insurance awareness of the whole society and the people. Guide insurance institutions to carefully protect the reputation of the industry, make honesty and trustworthiness, profit from justice, stability and prudence, integrity and innovation, and compliance with laws and regulations become the code of conduct and conscious compliance of insurance practitioners, continuously improve the people's satisfaction and sense of gain, and create a trustworthy , a trustworthy and warm insurance industry with a good image.
Ladies and gentlemen, friends!
Opening up to the outside world is an important driving force for the reform and development of China's financial industry. We will adhere to equal emphasis on "bringing in" and "going out", continue to create a first-class business environment, and unswervingly expand the high-level opening up of the financial industry to the outside world. Guide financial institutions to optimize cross-border financial services and deeply integrate into the high-quality Belt and Road Initiative. Steadily expand institutional opening-up, study to broaden the scope of foreign shareholders of non-bank financial institutions, encourage qualified foreign-funded institutions to participate in various business pilots, and support foreign-funded institutions in China to deeply explore China and operate steadily. Our country has the most promising financial market in the world. We sincerely welcome more foreign investment institutions and long-term capital to come to China to develop businesses and achieve better and greater development.
Ladies and gentlemen, friends!
Shanghai has always been at the forefront of the country in the reform and opening up of the financial industry. One year ago, we officially launched the construction of the Shanghai International Reinsurance Registration and Trading Center here. In the near future, we will work with the Shanghai Municipal People's Government to issue implementation opinions on accelerating the construction of Shanghai International Reinsurance Center. Actively explore the pilot investment of insurance funds in gold contracts and related products of the Shanghai Gold Exchange, relax restrictions on non-resident M&A loans in the Lingang New Area, encourage China Insurance Investment Company to better utilize the long-term investment function of insurance funds in Shanghai, and support more foreign financial institutions in Landed in Shanghai. In the future, we will promote more financial opening-up measures to be piloted in Shanghai, fully support the construction of Shanghai as an international financial center and the integrated development of the Yangtze River Delta, and give full play to Shanghai's leading and exemplary role in promoting Chinese-style modernization.
Finally, I wish this forum a complete success!
Thank you everyone!
Editor: Xiao Mo
Reviewer: Chen Mo
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