July 8, 2020

About the July 8th National Insurance Awareness Day

The themes of earlier years’ events were:

• “Better Life through Insurance” (2013);

• “Love Has No Borders—It’s Time to Take Action” (2014);

• “One-Click Insurance for Boundless Care” (2015);

• “@Insurance for An Easier Life” (2016);

• “Insurance, The Start of Escaping Poverty” (2017);

• “Insurance, The Start of Securing a Good Life” (2018);

• “Insurance, The Start of Showing Love for Your Country and Family” (2019).

The 2020 Awareness Day is themed “United We Stand.” Through modules including “Healthy China,” “Poverty Reduction,” and “Fighting against COVID-19,” the event aims to build industry consensus, raise the sense of responsibility and mission among people in the insurance industry, bring the industry closer to the general public, and rally industry and public support to overcome challenges together and build a better future.

United We Stand | CISFC is in Action

The China Banking and Insurance Regulatory Commission (CBIRC) recently released the Notice on Waiving Insurance Security Fund Contributions for Insurance Legal Entities and Branches in Hubei Province for 2020 to support insurers in Hubei.

According to the Notice, qualified insurers include insurance legal entities registered in Hubei and branches established in the province by non-Hubei insurance legal entities. Altogether, 4 legal entities and the Hubei branches of another 80 insurance companies will benefit from this policy with a savings of more than RMB 700 million in contribution.

This policy is a major step taken by the CBIRC to answer the call of the CPC Central Committee and the State Council for ensuring stability and security in six aspects, and to help Hubei combat COVID-19 and return to normalcy and economic and social sustainability. It also lowers the operating costs of Hubei-based insurers, enabling them to better contribute to the province’s economic and social development through more effective risk protection and financial support.

Making Your Insurance Policy Safer | About CISF

The insurance security fund system is the hallmark of a mature insurance market and the industry’s last line of defense against insurance risks. According to the Insurance Law and the Measures for the Administration of the Insurance Security Fund, China Insurance Security Fund (CISF) is an industry relief fund that provides financial compensation to policyholders and helps diffuse industry risks when insurance companies are exposed to significant risks that may severely endanger public interests or financial stability. The CISF system has played a vital role in promoting the market-oriented reform of China’s insurance industry, particularly in the formation of the market exit mechanism. It also helps protect consumers’ insurance policies.

By mode of operation, China’s insurance security fund has gone through three historical stages: self-retention and management by insurance companies, centralized management, and corporate operation. In 2008, the China Insurance Security Fund Co., Ltd. (CISFC) was established in accordance with the Measures for the Administration of the Insurance Security Fund jointly released by the former CIRC, the Ministry of Finance, and the People’s Bank of China. The CISFC is responsible for collecting, managing, and using the CISF. The CISFC is not only a state-owned, public-service financial institution, but also a key market player that helps regulatory authorities prevent and mitigate industry risks. In line with its mission and responsibilities, the CISFC has been committed to supporting insurance supervision, promoting industry development, and serving insurance consumers by safeguarding their rights and interests. In short, the CISF and the CISFC are a firm executor of insurance regulatory policies and a staunch defender of insurance consumers and insurers.