China's Financial Regulatory Administration Issues New Rules for Property Insurers' Product Development

Deep News
Yesterday

The Financial Regulatory Administration has revised and released the "Regulations on the Administration of Insurance Product Development for Property Insurance Companies" (hereinafter referred to as the "Regulations"), aimed at further standardizing the insurance product development practices of property insurance companies, protecting the lawful rights and interests of policyholders, insureds and beneficiaries, continuously sending a strong regulatory signal, improving the quality and efficiency of insurance product supply, and promoting the high-quality development of the property insurance industry.

The "Regulations" represent a systematic revision and refinement by the Financial Regulatory Administration of the "Guidelines for the Development of Insurance Products by Property Insurance Companies," based on extensive research and solicitation of opinions. The "Regulations" consist of 8 chapters and 41 articles, covering general provisions, basic requirements for product development, requirements for main insurance clauses and rates, requirements for additional insurance clauses and rates, product development management requirements, evaluation revision and cancellation, supervision and administration, and supplementary provisions.

First, it consolidates the primary responsibility of companies, emphasizing that companies, as the developing entity, bear corresponding legal liability for clauses and rates. Second, it revises and improves basic norms, clarifying the basic principles, overall requirements, attribute classification and insurance type categorization for insurance product development, and listing eight categories of prohibited development scenarios. Third, it standardizes clause and rate management, setting requirements for main insurance and additional insurance respectively in terms of naming conventions, clause frameworks and rate determination, with particular emphasis on supplementing detailed requirements for additional insurance development. Fourth, it strengthens product development management, requiring companies to establish product development management systems, set up product management committees led by principal responsible persons, and clarify full-process management requirements from planning and preparation, research and demonstration, to internal review, approval and filing. Fifth, it enhances full-lifecycle product management, requiring evaluation of products on sale and timely revision or cancellation, and detailing annual product report requirements. Sixth, it continuously strengthens product supervision, clarifying the responsibility determination of product management personnel at all levels within companies, requiring companies to establish internal accountability mechanisms, and continuously improving the intensity of product supervision and management.

As an important measure for property insurance supervision and comprehensive governance of non-auto insurance, the "Regulations" adhere to a problem-oriented approach, focusing on issues existing in practice such as non-standard product development, unclear functional positioning of additional insurance, and unsound management processes, continuously strengthening product supervision through supplementing and refining regulatory rules. Next, the Financial Regulatory Administration will, in accordance with the requirements of the "Regulations," continue to strengthen product supervision of property insurance companies, effectively improving the professionalization and standardization of insurance product development by property insurance companies, and better meeting the insurance protection needs of the people and the economy and society.

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