As General Secretary Xi Jinping stressed, “preventing and resolving financial risks, especially preventing systemic financial risks, is the fundamental and long-term task of the financial sector”. The insurance security fund system is important to the prevention and resolution of financial risks. In 2004, with the approval of the State Council, the insurance regulator established the insurance security fund management system as per the principle of “centralized administration and utilization”, thus creating China’s first market-based self-help mechanism in the financial sector. In September 2008, the former China Insurance Regulatory Commission (CIRC), the Ministry of Finance (MOF), and the People’s Bank of China (PBOC) jointly promulgated the Measures for the Administration of the Insurance Security Fund, based on which China Insurance Security Fund Co., Ltd. (CISFC) was incorporated, upon the approval of the State Council, to take charge of the fundraising, management, and operation of the China Insurance Security Fund (CISF). The establishment of CISFC heralded a new era of professional management and operation for CISF, and represented a huge step towards the goal of resolving the risks in the insurance sector and safeguarding the rights and interests of insurance consumers by market-oriented means.
In recent years, the Party Committee of CISFC thoroughly acted on the statements and instructions of General Secretary Xi Jinping on the financial work as well as the decisions and arrangements made by the CPC Central Committee and the State Council, while grounding its efforts in the new development stage, applying the new development concept, and helping to form a new development pattern. Under the correct leadership of the Party Committee of China Banking and Insurance Regulatory Commission (CBIRC), CISFC made solid headway in Party building; got deeply involved in the risk disposal of problematic insurance institutions; actively integrated into the risk monitoring system of the regulatory department; and continued to raise and manage related funds in a normative way, made steady progress towards fund preservation and appreciation, and kept doing better in corporate governance. Therefore, it played an important role in preventing and resolving financial risks and safeguarding the legitimate rights and interests of insurance consumers. In the process, it gathered an abundance of experience in risk disposal, generated a variety of disposal tools such as equity rescue, claim-based rescue, and policy relief, and created an array of risk management brands such as the annual risk assessment report, insurance consumer confidence index, and Observation of Insurance Risk, all of which provided useful references for risk disposal in the Chinese insurance sector.
Financial security is an integral part of national security and an important prerequisite for the stable and healthy development of the national economy. Looking ahead, CISFC will resolutely ensure the “two establishments” and “two upholdings”, vigorously carry forward the spirit of self-revolution, firmly fulfill the political responsibility of risk disposal, more proactively respond to all kinds of risks and hidden dangers, and strive to explore a market-oriented rescue mechanism with Chinese characteristics for the industry sector. Overall, it will do everything possible to safeguard the financial security of China.