PICC(SH:601319) Zhong Guo Jing Ying Bao·2025-10-14 08:36Core Viewpoint - The National Financial Regulatory Administration is set to implement a new regulation for non-auto insurance, focusing on improving the quality of non-auto insurance business and addressing issues such as irregular operations and irrational competition, effective from November 1, 2025 [1][2]. Summary by Sections Regulatory Changes - The new regulation aims to optimize assessment mechanisms, standardize product development and usage, manage premium income, enhance market supervision, improve underwriting and claims services, and leverage industry organizations for support [1][2]. Non-Auto Insurance Market Insights - Non-auto insurance accounted for 50.77% of total premium income in the first eight months of 2025, with health insurance at 14.88%, agricultural insurance at 10.83%, and liability insurance at 8.24% [2]. - The share of non-auto insurance in total premium income has increased from 26%-27% between 2013 and 2016 to over 50% currently, although profitability remains weaker compared to auto insurance [2]. Fee Structure and Management - The regulation mandates that property insurance companies must set insurance rates based on fairness, reasonableness, and adequacy, and establish a mechanism for periodic rate review and dynamic adjustment [3]. - To address premium receivables, the regulation requires a "fee-for-policy" approach, ensuring that policies are issued only after premium payment is received [4]. Industry Response - Several insurance companies, including China Life and Ping An Property & Casualty, have established task forces to implement the new regulation, emphasizing the importance of transitioning from a focus on scale and speed to quality and efficiency [7][8]. - The implementation of "reporting and operation in unison" is expected to curb irrational price competition and promote rational market behavior, enhancing service quality and product competitiveness [5][6].