Core Viewpoint - The China Trust Industry Association is organizing a conference to draft guidelines for insurance trust business, aiming to standardize operations and promote high-quality development in the trust industry [1][2]. Group 1: Conference and Participants - The conference is held in Xi'an from June 24 to 25, with participation from various trust companies and legal experts [1]. - The purpose of the conference is to align the trust industry with regulatory requirements and to promote the transformation of the trust sector [1][2]. Group 2: Guidelines Overview - The draft guidelines consist of nine chapters and forty articles, covering aspects such as establishment, management, risk management, and self-regulation of insurance trust business [3]. - The guidelines aim to clarify the definition of insurance trust, which involves accepting commissions from individuals or families based on life insurance contracts [3]. Group 3: Business Process Management - The guidelines establish comprehensive management requirements for the entire process of insurance trust business, including promotion, due diligence, investment management, and information disclosure [5][6]. - Trust companies are required to set up risk identification and control mechanisms throughout the business process to protect the rights of clients and beneficiaries [7]. Group 4: Encouragement of Innovation and Collaboration - The guidelines encourage trust companies to innovate and collaborate across various sectors, such as healthcare, education, and charity, to meet the growing wealth management needs of clients [7]. - Trust companies are advised to maintain compliance with legal regulations while pursuing innovative activities [8].

Core Insights - The implementation of the "Three Classification" regulation has led to significant transformation in the trust industry, with insurance trust emerging as a key growth area [1][2] - Insurance trusts are becoming increasingly popular due to their dual benefits of insurance leverage and asset isolation, with a focus on traditional life insurance products [1][4] - The market for insurance trusts has grown rapidly, with the total business scale exceeding 300 billion yuan, indicating a robust demand and regulatory support [4] Group 1: Industry Transformation - The trust industry is transitioning from non-standard financing to core trust services, with wealth management services, including family trusts and insurance trusts, showing notable growth [2][3] - Insurance trusts have a lower entry threshold compared to family trusts, making them accessible to a broader range of clients, with minimum setup costs typically between 1 million to 3 million yuan [2][3] - The establishment of insurance trusts is not limited by high-net-worth criteria, allowing more clients to explore trust services at a lower cost [3][4] Group 2: Market Dynamics - The insurance trust business is characterized by a collaborative ecosystem involving banks, insurance companies, and trust firms, with over 43 trust companies and 60 insurance companies participating [4][5] - Banks and insurance companies are leveraging insurance trusts to enhance customer retention and expand their service offerings, contributing to increased revenue streams [5][6] - The competitive landscape is evolving, with various financial institutions needing to establish partnerships to effectively serve clients and optimize resource allocation [5][6] Group 3: Operational Challenges - Trust companies face challenges in generating immediate revenue from insurance trusts, as the business model often requires upfront investment with delayed returns [7] - There is a disparity in operational processes among trust companies, with some lacking standardized systems for managing insurance trust services [6][7] - The industry is exploring ways to establish clearer operational guidelines and fee structures to enhance the sustainability and profitability of insurance trust services [7]