On January 4, the CBRC issued the Notice on Regulating Insurance Companies' Sales of Insurance Products to Connect with Elderly Care Community Service Business (Draft for Comments) (hereinafter referred to as the "Notice"), seeking opinions in the industry on regulating insurance companies' sales of insurance products to connect with elderly care community service business (hereinafter referred to as "insurance+elderly care community business"). The so-called "insurance+elderly care community business" refers to the business that insurance companies sell insurance products, provide value-added services such as staying in elderly care community rights and interests to policyholders who have paid a certain amount of accumulated premiums for purchasing related products. The insiders said that "insurance+elderly care community business", on the basis of long-term pension reserves for people, also provides people with residency qualification for elderly care communities, meeting people's diversified needs for elderly care security. However, with the development of this business, the industry competition has gradually intensified, and some problems have arisen. "The strategic positioning of some companies is not clear, the service supply capacity does not match, the responsibility boundary is not clear enough, and there are sales misleading and other situations in the sales process." The insiders said that the regulatory authorities issued a notice at the right time. This will require insurance companies to design business models according to the needs of ordinary people to better meet people's pension security needs. The Notice on Several Indicators Clarifying the Regulatory Delimitation of the Threshold for Insurance Enterprise Access clarifies eight access conditions for insurance companies to carry out "insurance+elderly care community business". Specifically, the net assets shall not be less than 5 billion yuan; Comprehensive repayment adequacy ratio shall not be lower than 120% for four consecutive quarters; Comprehensive risk rating of Class B or above for four consecutive quarters; The coverage rate of the reserve for four consecutive quarters is 100%; Corporate governance evaluation results of Grade C and above; The asset liability management ability shall not be lower than the third level; Failing to touch on the situation of taking regulatory measures in other types of regulatory ratings or regulatory assessments; Other conditions stipulated by the CBRC. The insiders said that these hard indicators have a certain threshold for insurance companies. From the perspective of insurance companies currently operating "insurance+elderly care community business", most of the core head insurance companies such as Taikang Life Insurance, Ping An Life Insurance, Taibao Life Insurance and other foreign mainstream insurance companies such as AIA Insurance and Zhonghong Insurance meet these conditions, but the former real estate insurance companies and problem insurance companies may not meet the solvency, comprehensive risk rating and other requirements. "At present, in the market, some companies have done this kind of business very well, and the asset side and liability side have formed a mature development model." The insiders said, but this is a super long cycle business model, which can only be done well by those companies who practice their internal skills hard and study hard. The regulatory authorities put forward these requirements in order to strengthen the main responsibility of insurance companies, so that good companies can run this business well. The elderly care community shall operate independently to ensure risk isolation. The notice clearly states that insurance companies can operate the elderly care community through investment, construction, leasing or cooperation. The elderly care community shall operate independently to ensure risk isolation. According to insiders, at present, the industry mainly operates the "insurance+elderly care community business" in two ways: first, it focuses on assets and builds its own elderly care community; The second is the asset light model, which cooperates with the external elderly care community. The first mode requires insurance companies to have sufficient financial strength and strategic determination, while the second mode requires
Edit：wangwenting Responsible editor：xiaomai
Source：xinhuanet
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