Ping An Property & Casualty Personal Consumer Credit Guarantee Insurance is an insurance product that helps customers obtain unsecured small short-term loans from banks by providing credit guarantee insurance to individual customers. The risk it covers is the uncertainty of whether customers can repay on time after borrowing from banks. The applicant is a loan customer, the insurer is Ping An Property Insurance, and the insured is a loan bank. When an insurance accident occurs, Ping An Property & Casualty is responsible for making claims to the loan bank according to the corresponding terms. Ping An Property & Casualty Personal Consumer Credit Guarantee Insurance solves the problem that individual customers need to obtain short-term small unsecured loans from banks. Ping An Property & Casualty cooperates with a specific bank, and its underwriting risk is reviewed by the Credit Guarantee Insurance Division of Ping An Property & Casualty, and the bank reviews its loan risk and lends money. In other words, if individual customers need small loans, they can apply for insurance from Ping An Property & Casualty Credit Guarantee Insurance Division and apply for loans from cooperative banks of Ping An Property & Casualty Credit Guarantee Insurance Division. Ping An Property & Casualty Credit Guarantee Insurance Division will review their insurance applications. If they pass, they will issue a policy, and then the bank will review their loan application and issue loans to customers according to the insured amount of the policy. The customer must pay the premium in one lump sum and repay the loan and interest to the bank on schedule. At present, the insured must be a China citizen aged 2 1-55, with a minimum living allowance of 1 10,000 yuan and a maximum insurance period of 24 months. There are significant differences between loans under this model and bank loans: First, their target customers are different. Different from the positioning of high-end customers of bank loan services, the target customers of Ping An personal credit guarantee insurance model are low-end customers-providing low-and middle-income people with the same financing opportunities as high-income people; Secondly, the loan under the Ping An personal credit guarantee insurance model does not require the customer to provide any mortgage, while the bank loan often requires the customer to provide a certain amount of asset guarantee or mortgage; Thirdly, compared with the complicated application process of bank loans, the loan application process under the Ping An personal credit guarantee insurance model is very simple and fast. The popularization of personal consumption credit guarantee insurance not only helps low-and middle-income people to establish and attach importance to credit records and enhance residents' credit awareness, but also promotes the development of social credit environment and accelerates China's entry into a healthy and harmonious credit era. Ping An Property & Casualty personal consumption credit guarantee insurance has a certain background. With the development of economy, the demand for personal financial management is also increasing. In addition to the demand for large personal loans such as house mortgage, the demand for small loans is also increasing, such as emergency funds, surgery fees, education fees, travel, and purchase of large items. Especially among young people, this demand is growing faster. Generally speaking, in a person's life cycle, there will always be some differences between his income curve and his expenditure curve, which provides a growing market for microfinance. In Europe, America and the Asia-Pacific region, microfinance has a very large market, and in many emerging markets, the microfinance market is growing. In addition, micro-credit business is a high-risk business, and enterprises engaged in this business need a good social credit environment and high risk management technology. At present, the central bank's credit information system provides the basis for this business. At the same time, China Ping An also introduced professional management team and risk management technology from overseas, including professional leadership teams from South Korea and Hong Kong, which provided technical support for this business. On the other hand, at present, most personal consumption loans of banks are mortgage loans such as house mortgage. Small loans are also conducive to stimulating consumption and promoting economic development. This has also opened a new mode of cooperation between insurance companies and banks. Therefore, this business has received strong support from the China Insurance Regulatory Commission. In Haikou, Ping An Property & Casualty chose China Everbright Bank as its strategic partner. The two sides are committed to promoting the expansion of consumer credit business in Haikou market, and "Ping An Easy Loan Insurance -XXXX" came into being. If ordinary customers successfully insure Ping An Easy Loan Insurance, they can get a small consumer loan issued by China Everbright Bank according to the insured amount of the policy. The insured (or borrower) does not need to provide guarantee or collateral to Ping An Property Insurance or China Everbright Bank, and the maximum loan amount is 7 times of the monthly income. The purpose of the loan covers all personal or family consumption fields such as house decoration, tourism and leisure, and personal study. It is more convenient and faster to insure by a special person. As long as the insured prepares the required relevant information, he can transfer the loan cash to his personal account through Haikou Branch of China Everbright Bank within 3 to 5 working days after the insurance. The insured pays the premium to Ping An Property Insurance and the interest to China Everbright Bank. The premium varies according to the insured's type, loan amount, loan term and credit status, with the lowest rate of 2 1.6% and the highest rate of 37.9%, which will be deducted at one time when the insured obtains the loan. After obtaining the loan, the insured shall repay the principal and interest to the bank every month according to the loan amount and loan term and the interest rate stipulated by the central bank. The innovative mode of "personal credit guarantee insurance+bank micro-loan" has opened a new mode of cooperation between insurance companies and banks, which not only enriches the bank's personal loan product series, but also helps banks reduce lending risks and further broaden financial service channels; At the same time, it is conducive to further improving China's personal credit system. The development of personal credit guarantee insurance has also promoted the development of small-scale consumer loans, making the bank's funds feed back to the local areas, meeting the consumption and financing needs of individual customers and SME customers in Haikou, stimulating consumption and promoting the financial and economic development of Haikou market. And effectively prevent usury and reduce economic disputes. As a sunny financial product, it effectively guides normal financing needs to formal financial channels, which is conducive to and promotes financial and social stability.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.