Core Viewpoint - The recent notification from the Financial Regulatory Bureau emphasizes the need for enhanced regulation of non-auto insurance products, focusing on quality and compliance rather than mere scale and speed [1] Group 1: Regulatory Enhancements - The notification aims to optimize assessment mechanisms, shifting the focus of property insurance companies from scale and speed to quality and efficiency [1] - It mandates the standardization of product development and usage, ensuring strict adherence to approved insurance products and their corresponding rates [1] - There is a requirement for property insurance companies to improve their information systems and internal control mechanisms to ensure strict financial management from the source [1] Group 2: Market Conduct and Consumer Service - The notification strengthens market behavior regulation, imposing penalties for non-compliance with approved rate usage and for providing false reports or documents [1] - It encourages improvements in non-auto insurance underwriting and claims services, aiming to enhance consumer convenience and satisfaction [1] - The role of industry organizations is highlighted to support the orderly development of non-auto insurance standardization, which is essential for improving operational quality and regulatory effectiveness [1]

Core Viewpoint - The National Financial Regulatory Administration has issued a notice to extend the "reporting and execution" regulatory system from the auto insurance sector to the non-auto insurance market, effective November 1, 2025, while abolishing the old regulations from 2007 [2][3]. Industry Background - Non-auto insurance business has seen rapid growth, with its premium share increasing from 37.1% in 2019 to 47.4% in 2024, according to Guosen Securities [2][3]. - The industry faces challenges such as underwriting losses in key products like liability and corporate property insurance, prompting the need for regulatory changes to curb irrational competition and refocus on product innovation and service enhancement [2][3]. Regulatory Changes - The notice defines non-auto insurance as all property insurance excluding motor vehicle insurance, with specific provisions for agricultural and export credit insurance [3]. - The "reporting and execution" requirement mandates that property insurance companies strengthen premium rate management and adhere to approved product rates, addressing long-standing issues of price distortion due to aggressive competition [3][4]. Implementation of "See Fee Issue Policy" - The notice mandates that insurance companies issue policies only after collecting premiums, addressing the issue of unregulated premium receivables that have led to financial burdens and disputes [5]. - This policy aims to reduce financial risks and bad debt pressures for property insurance companies, promoting a shift from aggressive competition to a focus on service and quality [5]. Collaborative Efforts - The notice emphasizes the need for regulatory bodies to monitor operational indicators of property insurance companies and conduct timely regulatory interviews and inspections for those exceeding approved fee levels [6]. - Industry organizations are tasked with developing industry standard clauses and self-regulatory guidelines to support the implementation of the new regulatory framework [6]. Definition of "Reporting and Execution" - "Reporting and execution" requires insurance companies to align their actual operational behaviors with the core elements declared during product registration, aiming to enhance transparency and curb malicious competition in the industry [7].

Core Viewpoint - The Financial Regulatory Bureau has issued a notification to strengthen the regulation of non-auto insurance business, requiring property insurance companies to optimize their assessment mechanisms, standardize product development, and enhance premium rate management, effective from November 1, 2025 [1][2]. Group 1: Regulatory Changes - The notification emphasizes the "reporting and execution consistency" principle, meaning that the actual insurance terms and premium rates must align with the submitted materials to the regulatory authority, extending this regulation to non-auto insurance [1]. - The non-auto insurance business, which excludes motor vehicle insurance, has seen its share of total property insurance premiums rise from 37.1% in 2019 to 47.4% in 2024, contributing nearly half of the total premium scale [2]. Group 2: Industry Shift - The notification aims to shift the focus of property insurance companies from pursuing scale and speed to prioritizing quality and efficiency in their non-auto insurance operations [2]. - The long-term losses in non-auto insurance are attributed to deviations from the law of large numbers in pricing, with many products lowering rates through differentiation, undermining the application of this principle [2]. Group 3: Detailed Requirements - The notification outlines specific requirements for premium rate management, including the need for reasonable settings of additional premium rates and service fees, and mandates that companies establish mechanisms for periodic review and dynamic adjustment of rates [3][4]. - Property insurance companies are prohibited from altering the terms and rates of insurance through special agreements or other means that deviate from the approved filings [3][4]. Group 4: Role of Industry Organizations - Industry organizations are tasked with developing standard clauses and self-regulatory guidelines for underwriting and claims in the non-auto insurance sector, enhancing the overall regulatory framework [5]. - The notification is seen as a comprehensive restructuring of non-auto insurance regulations, aimed at promoting high-quality development and better protection for consumers [5].

Core Viewpoint - The Financial Regulatory Authority has issued a notification to strengthen the regulation of non-auto insurance, emphasizing the requirement for "reporting and execution to be unified" and enhancing rate management and premium income oversight [1][3][4]. Regulatory Requirements - The notification defines non-auto insurance as all property insurance excluding motor vehicle insurance and establishes strict guidelines for product development and rate management [4][5]. - Insurance companies and intermediaries are prohibited from altering approved insurance terms and rates through special agreements or other means, ensuring compliance with the approved terms [4][5]. Market Impact - The notification aims to eliminate unhealthy competition in the non-auto insurance sector, which has seen rapid growth but also significant losses due to high costs and low rates [6][7]. - The non-auto insurance premium income is projected to reach 777 billion yuan in 2024, with a compound annual growth rate of over 10% in the past five years, indicating a shift in market dynamics [6]. Quality Development Focus - The notification encourages a shift from a focus on scale and speed to quality and efficiency in non-auto insurance operations, promoting better consumer experiences and service standards [5][7]. - It emphasizes the need for insurance companies to enhance their risk management, product innovation, and service quality to foster high-quality development in the industry [5][7]. Challenges for Implementation - Insurance companies must overcome challenges such as restructuring their operational philosophies and assessment systems to prioritize compliance and consumer satisfaction over mere market share [8]. - There is a need for improved product management and actuarial pricing to ensure all products comply with approved terms and to adjust pricing strategies as necessary [8].

Core Viewpoint - The Financial Regulatory Bureau has issued a notification to strengthen the regulation of non-auto insurance business, requiring property insurance companies to optimize their assessment mechanisms, standardize product development, and enhance premium rate management, effective from November 1, 2025 [1][2]. Group 1: Non-Auto Insurance Business Overview - Non-auto insurance business refers to all property insurance activities excluding motor vehicle insurance, with agricultural insurance and export credit insurance subject to separate regulations [2]. - The share of non-auto insurance in total property insurance premiums has increased from 37.1% in 2019 to 47.4% in 2024, contributing nearly half of the total property insurance premium scale [2]. Group 2: Regulatory Changes and Implications - The notification emphasizes the need for property insurance companies to shift their focus from scale and speed to quality and efficiency in their non-auto insurance operations [2]. - The long-term losses in non-auto insurance are attributed to deviations from the law of large numbers, with many products sold at reduced rates through differentiation, undermining proper pricing [2]. Group 3: Rate Management and Compliance - The notification outlines detailed requirements for rate management, including the need for reasonable setting of additional rates and fees, and mandates that companies establish mechanisms for periodic review and dynamic adjustment of rates [3]. - Property insurance companies must strictly adhere to the approved insurance terms and rates, prohibiting any substantial changes through special agreements or other means [3][4]. Group 4: Insurance Intermediary Management - Property insurance companies are required to manage insurance intermediaries responsibly, ensuring that only qualified entities are engaged in sales activities and that fees paid align with the services provided [4]. - Companies must accurately report management expenses and ensure that intermediary fees do not exceed the approved limits, avoiding any disguised payments [4]. Group 5: Enforcement and Industry Standards - The notification specifies that regulatory measures or administrative penalties will be enforced against companies that fail to comply with the approved terms and rates or provide false documentation [5]. - Industry organizations are tasked with developing standard clauses and self-regulatory guidelines for underwriting and claims processes to support the implementation of the new regulations [6]. Group 6: Future Directions - The Financial Regulatory Bureau emphasizes that the notification is a significant step towards optimizing non-auto insurance regulation, aiming to promote high-quality development in the sector and better protect consumer rights [6].

Core Viewpoint - The Financial Regulatory Administration has issued a notification to strengthen the regulation of non-auto insurance business, aiming to enhance the quality and efficiency of this sector [1] Summary by Relevant Sections Regulation of Non-Auto Insurance Products - The notification specifies that non-auto insurance refers to all property insurance business excluding motor vehicle insurance [1] - It mandates strict adherence to approved insurance products and requires that non-auto insurance products align with their registered content, emphasizing the "reporting and execution" principle [1] Prohibited Practices - Property insurance companies and intermediaries are prohibited from altering approved insurance terms through special agreements, endorsements, or other means [1] - Practices such as splitting insurance objects, changing insured attributes, or adjusting deductibles to indirectly modify insurance rates are also banned [1] Management and Operational Changes - The notification encourages a shift in the operational philosophy of property insurance companies from focusing on scale and speed to prioritizing quality and efficiency [1] - It calls for improved premium income management and the establishment of robust internal control mechanisms to ensure strict financial management from the source [1] Overall Impact - The issuance of the notification represents a comprehensive review and systematic optimization of non-auto insurance regulatory policies [1] - It aims to foster rational competition, reduce costs, enhance efficiency, and promote high-quality development in the non-auto insurance sector, ultimately providing better insurance protection for the public and supporting economic development [1]

Core Viewpoint - The National Financial Supervision Administration has issued a notice to strengthen the regulation of non-auto insurance business, aiming to enhance product development, rate management, and overall quality in the sector [2]. Summary by Relevant Sections Regulation of Non-Auto Insurance - The notice defines non-auto insurance as all property insurance excluding motor vehicle insurance and emphasizes the need for compliance with approved product filings [2]. - It introduces a "reporting and implementation" requirement for non-auto insurance products, ensuring that their usage aligns with the approved content [2]. Management and Operational Changes - The notice aims to shift the operational philosophy of property insurance companies from pursuing scale and speed to focusing on quality and efficiency [2]. - It mandates improvements in premium income management and requires companies to enhance their information systems and internal control mechanisms for stricter financial management [2]. Overall Impact - The Financial Supervision Administration states that the notice represents a comprehensive review and optimization of non-auto insurance regulations, promoting rational competition, cost reduction, efficiency enhancement, and high-quality development in the sector [2].

Core Viewpoint - The National Financial Supervision Administration has issued a notice to strengthen the regulation of non-auto insurance business, aiming to enhance rate management and optimize assessment mechanisms for better quality and efficiency in the sector [3]. Group 1: Regulatory Changes - The notice specifies that non-auto insurance refers to all property insurance business excluding vehicle insurance [3]. - It mandates strict adherence to approved insurance products and promotes the alignment of non-auto insurance product usage with the filing content, establishing a "reporting and implementation" requirement [3]. Group 2: Business Management - The notice encourages property insurance companies to shift their operational philosophy from pursuing scale and speed to focusing on quality and efficiency [3]. - It requires companies to improve their information systems and internal control mechanisms to ensure strict financial management from the source [3]. Group 3: Industry Impact - The issuance of the notice represents a comprehensive review and systematic optimization of non-auto insurance regulatory policies, promoting rational competition, cost reduction, efficiency enhancement, and quality improvement in the non-auto insurance sector [3]. - The goal is to provide more sufficient and effective insurance protection for the public and support economic and social development [3].

Core Viewpoint - The National Financial Supervision Administration has issued a notice to strengthen the regulation of non-auto insurance business, which refers to property insurance other than motor vehicle insurance [2][3] Summary by Relevant Sections - The notice standardizes the development and use of related products, reinforces insurance rate management, and mandates strict adherence to approved insurance products, promoting compliance with the "reporting and implementation" requirements for non-auto insurance products [3] - It aims to optimize the assessment mechanism, shifting the operational philosophy of property insurance companies from pursuing scale and speed to focusing on quality and efficiency [3] - The notice also regulates premium income management, requiring property insurance companies to improve information systems and strengthen internal control mechanisms for stringent financial management from the source [3] - The Financial Supervision Administration states that the release of this notice represents a comprehensive review and systematic optimization of non-auto insurance regulatory policies, which will promote rational competition, cost reduction, efficiency enhancement, and high-quality development of non-auto insurance business, providing more effective insurance protection for the public and economic development [3]

Core Viewpoint - The National Financial Supervision Administration has issued a notice to strengthen the regulation of non-auto insurance business, emphasizing the need for property insurance companies to improve information systems and internal control mechanisms for better financial management [1] Group 1: Regulatory Changes - The notice specifies the development and use of related products, reinforcing insurance rate management and requiring strict adherence to approved insurance products [1] - It promotes the alignment of non-auto insurance products with their approved content, establishing a clear "reporting and execution" requirement for non-auto insurance [1] Group 2: Business Philosophy Shift - The assessment mechanism is optimized to shift the operational philosophy of property insurance companies from pursuing scale and speed to focusing on quality and efficiency [1] Group 3: Financial Management - The notice mandates property insurance companies to enhance their information systems and strengthen internal control mechanisms to ensure strict financial management from the source [1] Group 4: Industry Development Goals - The release of the notice represents a comprehensive review and systematic optimization of non-auto insurance regulatory policies, aiming to promote rational competition, reduce costs, increase efficiency, and enhance quality in the non-auto insurance sector [1] - It seeks to provide more sufficient and effective insurance protection for the public and support economic and social development [1]