— The Third Forum of CISF and the Press Release for the 2017 Risk Assessment Report on Chinese Insurance Industry were Held in Beijing
CISFC sponsored the "Third Forum of CISF" and the Press Release for the 2017 Risk Assessment Report on Chinese Insurance Industry in Beijing on July 5, 2017. Centering on the "Risk Control over the Insurance Industry and Reform of the Insurance Security Fund System", experts at the Forum delivered special reports on risk assessment of the insurance industry, reform of the insurance security fund collection system, reform of scope and standards of remedy of the insurance-related risks, and so forth. Mr. Chen Wenhui, Vice Chairman of CIRC, attended the Forum and delivered an important speech. Mr. Ren Jianguo, Chairman of the Board and General Manager of CISFC, delivered a keynote speech.
Mr. Chen fully affirmed the importance of the Forum. He stressed that the insurance industry was a special sector involving the operation and management of risks, insurers must intensify the management of their respective risks and could in no way become "risk makers" from "risk managers". Both regulatory authorities and market players must gain a profound understanding of the significance of risk control from the perspective of maintaining financial security and even national security, and must take forward-looking, effective and pertinent measures to intensify risk control at all links. At present, the insurance industry has solid fundamentals and the industry risk is controllable on the whole. Next step, CIRC will insist on " keeping the essential function of the insurance sector and the regulatory role of CIRC", enhance supervision, bolster areas of weakness and rectify chaos in line with general principles of seeking progress while working to keep performance stable, as well as actively reveal possible risk points and firmly hold the bottom line of preventing systematic risk from happening by releasing new necessary policies and modifying existing rules. Meanwhile, risk management elements shall be incorporated into the collection, management and use of CISF, so as to drive the reform and refinement of the insurance security fund system. Firstly, a whole set of policies and mechanism, including early warning and correction, post-event resolution and remedy, shall be established and improved. Secondly, efforts shall be devoted to explore the liquidity remedy, establish diverse risk resolution means and tools. Thirdly, efforts shall be made to push the fixed rate system to gear towards the differential rate system.
Mr. Ren emphasized that strengthening the construction of risk culture constituted an essential element for the development of the insurance industry. The absence of risk culture is the major cause of market chaos of the industry. As a risk remedy fund, CISF that is collected from the insurers shall be used in the interests of those insurers, to attain its fundamental purpose of safeguarding legitimate rights and interest of insurance consumers. As of the end of this June, CISF has achieved a fund size of RMB104.3 billion. As the entity of collecting, managing and using the CISF, CISFC will make the following efforts to promote sustainable and healthy development of the insurance sector: Firstly, efforts will be spared to drive the implementation of differential levy rate system to collect the fund and promote the insurers to strengthen their risk control. Secondly, efforts will be spared to optimize the scope and standards of the remedy, enhance the risk tolerance of insurance consumers and curb blind expansion of insurers. Thirdly, efforts will be spared to establish diverse risk remedial methods of CISF and better exert the role of CISF in rescuing the distressed insurers. Fourthly, efforts will be spared to refine the risk monitoring system and fully exert the role of CISF as risk identifier and fire extinguisher of the industry. Fifthly, efforts will be spared to create an atmosphere of risk culture and intensify the publicity of the insurance, so as to make the market players more mature.
Meanwhile, the 2017 Risk Assessment Report on Chinese Insurance Industry was released through the Forum, this is the third report released by CISFC in succession. From the perspective of a third party, the Report analyzes and evaluates the insurance-related risks from such four regards as economic and financial environments, operation of the industry, insurance risk assessment and expert observation. Based on an overall overview of internal and external environments of the insurance industry in 2016, the Report makes a systematic summary of operating status of the insurance sector and analyzes in depth potential risk problems of the insurers' operation. Both the width and the depth of analysis are further expanded, accordingly delivering greater social impact.
At the Forum, five experts made special reports on the insurance development, risk assessment of the industry in the first half of this year, macro-environment and risk management of the employment of insurance capital, comparison of collection of CISF with that of other countries and reform direction of CISF, scope and standards of remedy, and so forth. More than ten executives and leaders from bureaus and departments of CIRC, the Ministry of Finance and PBC, and nearly 100 guests from insurance companies, peer institutions and media attended the Forum. People.com.cn, Xinhua News Agency, Financial Times, China Insurance News, Insuranceforce and other media reported the Forum.