Basic information on life insurance terms

(I) Problems on the supply side of insurance

1. Single type of insurance and serious isomorphism of insurance products. At present, many insurance types operating in the insurance market have poor relevance and applicability, and lack of rigor in the design of terms and conditions, which cannot well meet the needs of policyholders in many aspects, and even become backlogged and stagnant elimination products. As a result, many insurance companies focus their operations on a limited number of insurance types. For example, in life insurance, all major companies are desperately scrambling to capture the market for children's insurance; in general insurance, the competition among companies also focuses mainly on a few major types of insurance such as property, vehicle and cargo transportation. As for liability, credit, guarantee and medical insurance, they are all in urgent need of development. In addition, the isomorphism of insurance products is also very serious. According to relevant statistics, China's insurance companies insurance structure similarity rate of more than 90%. This situation has led to "duplication of construction" of insurance companies, excessive competition, resulting in a waste of social productivity and resources.

2, increased competition, the phenomenon of illegal operation is quite serious. Its main manifestations are as follows: First, unauthorized increase or decrease in rates, expanding the underwriting responsibility, and increase the return of no-claims. In some of the main types of insurance, and even some destructive, predatory competitive behavior. For example, raising or lowering the basic premium of motor vehicle insurance or raising the grade of promotional materials, raising or lowering the rates in disguise. Secondly, the insurance agent's handling fee is paid in excess of the prescribed percentage. In the case of aviation personal accident insurance, for example, a number of life insurance companies competed for this business, and the handling fee competition climbed, even up to 70% or more. Third, without the approval of the People's Bank of China, new types of insurance were started without authorization. Fourth, false underwriting and reverse insurance. In order to fulfill the premium task, some grassroots insurance organizations even increased premiums and business volume by underwriting, surrendering, reinsuring and other false underwriting methods. Worse still, some insurance companies have gone so far as to make up insurance procedures and insurance contracts for enterprises that have suffered insurance accidents. These unfair competition, illegal business practices seriously undermine the fair competition in the market, exacerbate the risk of the insurance institutions themselves, so that certain types of insurance hides a serious payment crisis.

3, internal management chaos, accounting, account management has loopholes, weak internal control. First, the management and use of important documents is chaotic. Second, account management is not strict. Some grass-roots insurance companies to facilitate the operation, not in accordance with the provisions of the opening bank to set up a liability reserve deposit account, resulting in unreasonable occupation of insurance funds, insurance financial returns reduced, reduced ability to pay, the formation of potential risks. Third, the accounting is not true. Some grass-roots insurance companies in order to fulfill the high task index, in the accounting of outstanding claims to do. Some increase premiums receivable to increase profits and reduce outstanding claims; some take loans to solicit insurance, issue benefit payments for underwriting, and make fake policies to make fake claims. Fourth, the lack of necessary risk management system, the risk prevention and control ability of some important business links, such as underwriting, claims handling and fund utilization, is very weak. Fifthly, the internal audit supervision is not strong enough. Many insurance companies emphasize business over management, have an inadequate audit system, and lack daily supervision and inspection of their subsidiaries as well as agents, so that risks cannot be detected and resolved in a timely manner.

4, the use of funds in a single way, affecting its ability to pay. China's Insurance Law stipulates that the use of insurance funds is limited to bank deposits, trading of government bonds, financial bonds and other forms of utilization of funds as stipulated by the State Council. The single way of using insurance funds, narrow channels, weak ability to preserve and increase value, and at the same time there is a risk of depreciation, so that insurance companies have to rely on reducing the rate of compensation to realize profits and improve operational efficiency.

5, the social security institutions and relevant departments into the market confusion, holding the right to act, compulsory insurance. For example, the government designated labor and personnel departments to launch "social pension insurance", civil affairs departments to launch "farmers' pension insurance", trade unions and social organizations to launch "work-related injuries and medical insurance" and so on. The lack of coordination between social insurance and commercial insurance agencies has led to market confusion. Secondly, it is common for some departments to act as insurance agents, such as: the traffic police brigade acting as "motor vehicle and third-party liability insurance", the Family Planning Office acting as "mother and child health insurance", the government's labor department mandatory implementation of "pension insurance" and so on. Pension Insurance" and so on. Due to the unequal relationship between the insurer and the insured, the public is resistant to it, which directly affects the image of the insurance company's services.

(2) Problems on the Demand Side of Insurance

1. The public's awareness of risk is weak, and their willingness to take out insurance is not high. In the past, under the planned economic system, the government of the state-owned sector of the workers to implement almost "from life to death" of the full range of protection. Currently, under the socialist market economy, the main body of risk-bearing has gradually shifted from the government to enterprises and individuals. However, since domestic commercial insurance was suspended for 20 years between 1959 and 1980, the Chinese people's awareness of risk and insurance is necessarily lagging behind. According to relevant statistics, a survey of some urban residents in 1997 showed that only 1.7% and 18.6% of the people knew insurance very well and relatively well respectively, while 44.6% of the people were still in the "not too well" category. "Not quite understand" state, another 8.2% of people know nothing about insurance. 2, the effective demand for insurance is insufficient. First, due to the lack of in-depth insurance advertising and publicity, residents are not "household names" of insurance. Second, insurance companies are not strong in developing and designing new insurance products, which limits the generation of effective demand. Third, insurance companies generally focus on premiums but not on claims, with low repayment efficiency and poor service quality, which makes many policyholders complain about the claims service and restricts the emergence of consumers' insurance behavior. Fourth, in China, due to the traditional culture and the influence of small farmers economy, people believe in "raising children to prevent old age", pay attention to the family **** relief, affecting consumers, especially rural consumers to insure the enthusiasm; at the same time, this is also an important reason why it is difficult to carry out life insurance in rural areas.

3, the potential support crisis of insurance companies and inflationary pressure, directly affecting people's motivation to participate in long-term life insurance.

4. Not understanding the difference between social insurance and commercial insurance, many citizens who have participated in social insurance think that they do not need to go to the insurance company for insurance, which reduces the public demand for commercial insurance.

(3) Problems of Insurance Agents

1. Problems of Insurance Agencies:

Firstly, there are still a lot of insurance companies that set up agencies without registering and approving them with the People's Bank of China.

Secondly, the phenomenon of agents issuing policies in violation of the law and overstepping their authority to approve policies occurs from time to time.

Thirdly, insurance companies do not have a system to follow in managing the business and controlling the risks of their agencies, which is potentially hazardous. Fourthly, the organizational form, employment system, property rights and legal relationship of the agency are vague. These problems have brought obstacles to the development of the insurance industry.

2, the quality of insurance agents is not high, affecting the development of insurance business. Because most of the agents before the practice of society's surplus labor and unemployed people, insufficient knowledge of insurance, responsibility is not strong, often in the promotion of insurance, misleading statements, malicious solicitation and other irregularities, coupled with the agents of the concept of dedication is weak, the lack of professional ethics, so that some people take advantage of the opportunity of the chaos of financial management, the interception of retention, misappropriation and even embezzlement of the collection of insurance premiums, compensation and so on, the formation of the insurance practitioner's Moral risk, to the insurance company to expand business has brought negative impact.

Two, countermeasures

1, the development of new types of insurance, enhance market competitiveness, stimulate effective demand. Insurance companies should vigorously cultivate and introduce professionals in the development and design of insurance policies, improve old policies and develop new ones according to market needs, and create their own company's characteristic brands and fist products. Increase the effective supply and stimulate the generation of effective demand.

2, correct insurance company business guiding ideology. Insurance companies to establish the correct business objectives, to have risk awareness, the concept of efficiency and the concept of the rule of law. By increasing the publicity of insurance, improve the quality of service, increase the insurance coverage, strengthen internal management to develop the market, business development, improve economic efficiency; strictly prohibit the expansion of risk and cost at the expense of business development, the assessment of the exhibition staff, focus on quality indicators to prevent the generation of potential risks; to strengthen the learning and training of insurance practitioners, enhance legal awareness and the concept of the rule of law, and enforce the law in strict accordance with the law. Standardize the operation, comply with market planning, and eliminate disorderly competition in the insurance market.

3, improve the internal control mechanism of insurance companies to prevent various risks. First, to improve the rules and regulations, especially the underwriting and claims system, financial system, accounting system and so on. Secondly, a sound risk management system should be established to strengthen the risk prevention and control capabilities of underwriting, claims handling and fund utilization to ensure the adequacy of the company's solvency. Thirdly, a sound internal audit system should be established, professional auditors should be trained and equipped, and audit inspections should be carried out in a timely manner, including daily audits of subsidiaries and agents, so as to detect problems, plug loopholes and eliminate hidden dangers in a timely manner. Fourth, in the implementation of the system, strict rewards and penalties, the violation of the provisions of the system is dealt with seriously and without mercy, in order to maintain the authority of the system.

4, broaden the channels of insurance capital utilization, reduce the pressure of inflation, and improve the economic efficiency of insurance companies. At present, the People's Bank of China has agreed to the insurance company to join the interbank lending market, engaged in securities trading business. This is far from enough for the long-term insurance fund utilization channels. In particular, life insurance funds have the characteristics of long-term and stability, in addition to the investment channels stipulated in the Insurance Law, under the premise of improving various financial systems, it should be through a variety of channels and different investment organizations to enhance the rate of return of funds, reduce inflationary pressure, improve the solvency of insurance companies, and give better play to the function of insurance funds to compensate for the economic losses, and to achieve a better social benefits.

5, strengthen the central bank's supervision, for insurance companies to operate in accordance with the law, fair competition to create a favorable market environment. First, strict market access to insurance institutions, according to the provisions of the declaration and approval of insurance institutions. Secondly, the People's Bank should formulate specific and operable regulatory laws and regulations in accordance with the existing Insurance Law and other laws and regulations; insurance institutions are strictly prohibited from issuing joint documents with relevant departments to compel insurance, and they are not allowed to change the rates and increase the agent's handling fee without authorization; and they are not allowed to engage in illegal activities such as false claims, issuing policies in different places, and forcing the sale of goods. Thirdly, the People's Bank of China should have a forward-looking supervision and emphasize the supervision of the solvency of insurance companies. It should set up risk warning indicators for insurance companies in terms of payout ratio, reserve withdrawal, net asset changes, asset allocation ratio, risk retention ratio, solvency increase or decrease, etc., and conduct regular audits and inspections. For those whose solvency is not up to the required standard, in addition to urging them to adopt adequate ratios, administrative intervention is also required. Fourthly, the supervision of insurance agents should be strictly strengthened. Strictly in accordance with the "Regulations on the Administration of Insurance Agents (for Trial Implementation)", the clean-up and reorganization of insurance agencies should be tightened up, and agencies without "insurance agent operating licenses" should be revoked. At the same time, personnel who have not obtained the Certificate of Qualification for Insurance Agents are not allowed to engage in agency business in various ways. Fifthly, we will strengthen the business training of the supervisors, change the state of insurance supervision, which is "controlled by laymen", and improve the supervisory level.

6. Gradually establish independent insurance regulators and insurance assessment organizations, and strengthen the self-regulation of the insurance industry. First, the establishment of an independent insurance regulatory body, on behalf of the State Council to supervise and manage the insurance industry, to ensure the quality of insurance supervision. Secondly, an evaluation organization for insurance companies should be established as soon as possible so that insurance companies can be evaluated on a regular basis, so that consumers can make rational choices when purchasing insurance products and consumer rights can be protected. Thirdly, self-regulation of the insurance industry should be strengthened, and the power and responsibility of the insurance industry association in managing the insurance market should continue to be enhanced to promote the coordinated development of the insurance industry.

7. Establishment and development of insurance agencies to promote the healthy development of the insurance industry. At present, due to the problems in many aspects such as the quality of insurance agencies and agents, the management of the insurance industry has brought many difficulties. The establishment and development of professional insurance agencies is a need for the specialization of practitioners and the modernization of insurance management, and at the same time, it is also an important measure to regulate China's insurance market and maintain equal and orderly competition in the insurance market. Therefore, the establishment and development of insurance agency has become the inevitable trend and development direction of China's insurance industry.

Extended reading: insurance how to buy, which is good, hand to teach you to avoid the insurance of these "pits"