2. The comprehensive solvency adequacy ratio is not less than100%;
3. The comprehensive risk rating is above Grade B..
For insurance companies whose core solvency adequacy ratio is less than 50% or whose comprehensive solvency adequacy ratio is less than 100%, CBRC needs to take four regulatory measures, such as regulatory talks, requiring insurance companies to submit plans to prevent the solvency adequacy ratio from deteriorating or improve risk management, limiting the high salary level of directors and supervisors, and limiting dividends to shareholders. That's what the solvency requirement involves.
Will the insurance company go bankrupt?
Strictly speaking, an insurance company will not go bankrupt, but in China, the insurance law clearly stipulates that an insurance company shall not declare bankruptcy. Life insurance companies, in particular, will not go bankrupt according to the wishes of the company's shareholders, and insurance companies can apply for company division or merger. If the China Banking and Insurance Regulatory Commission has the right to terminate the business of the insurance company due to poor management, and if there are sufficient funds to support the insurance company to re-operate, it may apply for re-operation. If the people's court declares bankruptcy, China Banking and Insurance Regulatory Commission, China has the right to designate other insurance companies for custody, so as to solve the payment, surrender and security services behind the policy. Of course, if the insurance company goes bankrupt, the user's policy will not be affected, and the rights and interests are still there. In order to avoid the bankruptcy of insurance companies, the state will have a high threshold for the establishment of insurance companies. The establishment of insurance companies requires strict examination and approval, and there are high regulations in all aspects, so the probability of insurance companies declaring bankruptcy is relatively low.
How to deal with dissatisfaction with insurance company compensation
1. Communication with the insurance company: When encountering unreasonable compensation or the insurance company refuses to pay compensation, it is best to communicate with the insurance company first to understand the relevant reasons, and then communicate with the insurance company in combination with the analysis of the insurance contract, asking the insurance company to review the insurance compensation application again. If the communication is invalid, you can directly report or prosecute the next step;
2. Reporting to the regulatory body: As the regulatory body of insurance companies, the CBRC provides users with a variety of ways to report complaints. If the insurance company's compensation is unreasonable and fails to meet the contract standards, users can choose to report to the regulatory authorities. You can call the insurance transaction rights hotline to report it, or you can report it clearly in the complaint channel of the official website of China Banking Regulatory Commission, and attach the report certificate and compensation case materials. You can also report directly to the China Banking Regulatory Commission or the insurance association and other relevant institutions where the insurance is purchased;
3. Apply to a third party for arbitration: China has a professional insurance company arbitration committee. If the user is not satisfied with the insurance company's compensation, he can apply to this third party for arbitration, and the professional arbitrator will handle the dispute between the user and the insurance company, and the result will be more fair and effective.
Solvency of insurance companies
Article 1 An insurance company shall have a minimum solvency commensurate with its business scale.
Article 2 The actual solvency of an insurance company is the difference between the actual asset value and the actual liabilities at the end of the fiscal year.
The types of actual assets mentioned in the preceding paragraph and their recognition rates shall be stipulated by the China Insurance Regulatory Commission, and the actual asset value shall be the sum of the recognized values of all recognized assets.
Article 3 The minimum solvency limit of property insurance and short-term personal insurance business shall be subject to the higher of the following two items:
(1) 18% of the retained premium less premium tax and 1 6% of the part above RMB 100 million in this fiscal year.
(2) In the last three years, the average annual compensation amount was less than 70 million yuan, accounting for 26% and more than 70 million yuan, accounting for 23%.
An insurance company that has been operating for less than three years shall adopt the standards specified in Item (1).
Article 4 The minimum solvency limit of long-term life insurance business shall be the sum of the following two items:
General life insurance business is 4% of life insurance liability reserve at the end of fiscal year, and investment-linked business is 1% of life insurance liability reserve at the end of fiscal year.
(2) 0. 1% risk protection for periodic death insurance with an insurance period of less than three years, 0. 15% risk protection for periodic death insurance with an insurance period of three to five years, and 0.3% risk protection for periodic death insurance with an insurance period of more than five years and other types of insurance.
In statistics, if the insurance period of regular death insurance is not divided, it will be calculated as 0.3% of the risk insured amount.
Article 5 Where the actual solvency of an insurance company is lower than the standards set forth in these Provisions, it shall be handled in the following ways:
(1) If the actual solvency margin is lower than the minimum solvency margin, the insurance company shall take effective measures to make its solvency reach the minimum solvency standard, and make an explanation to the China Insurance Regulatory Commission.
(2) If the actual solvency margin is lower than 50% of the minimum solvency margin, or the actual solvency margin is lower than the minimum solvency margin for three consecutive years, the China Insurance Regulatory Commission may list the company as a key supervision and inspection object.
During the period when an insurance company is listed as a key supervision and inspection object, it may not apply for establishing a branch or paying dividends. China CIRC can order it to improve its solvency by handling reinsurance, business transfer, stopping accepting new business, increasing capital and shares, and adjusting asset structure.
(3) If the actual solvency margin is less than 30% of the minimum solvency margin, or the financial situation of an insurance company listed as the key supervision and inspection object continues to deteriorate, which may or has endangered the interests of the insured and the public, the China Insurance Regulatory Commission may take over the insurance company.
legal ground
Provisions on solvency management of insurance companies
Article 3 The term "solvency" as mentioned in these Provisions refers to the ability of an insurance company to fulfill its obligation to compensate the insured.
Article 4 An insurance company shall establish and improve its solvency management system, effectively identify and manage all kinds of risks, continuously improve its solvency risk management level, monitor its solvency status in time, prepare its solvency report, disclose relevant information on solvency, make a good capital plan, and ensure that its solvency reaches the standard.
Article 5 The China Banking Regulatory Commission (hereinafter referred to as the China Insurance Regulatory Commission) is risk-oriented, and combines quantitative capital requirements, qualitative regulatory requirements and market restraint mechanisms to formulate specific solvency supervision rules, comprehensively evaluate, supervise and inspect the solvency adequacy ratio, comprehensive risks and risk management capabilities of insurance companies, and take regulatory measures according to law.
Article 6 The solvency supervision indicators include:
(1) The core solvency adequacy ratio, that is, the ratio of core capital to minimum capital, measures the adequacy of premium capital of an insurance company;
(2) Comprehensive solvency adequacy ratio, that is, the ratio of actual capital to minimum capital, measures the overall capital adequacy ratio of insurance companies;
(3) Comprehensive risk rating, that is, evaluating the comprehensive solvency risk of insurance companies and measuring the overall solvency risk of insurance companies.
Core capital refers to the capital that an insurance company can absorb losses in the state of continuous operation and bankruptcy liquidation.
Actual capital refers to the financial resources that an insurance company can absorb losses in the state of going concern or bankruptcy liquidation.
The minimum capital refers to the amount of capital that an insurance company should have for the purpose of prudent supervision, so that the insurance company can have appropriate financial resources to deal with the adverse effects of various risks that can be quantified as capital requirements on its solvency.
Specific regulatory rules such as the measurement standards of core capital, actual capital and minimum capital shall be formulated separately by the China Banking Regulatory Commission.
Article 7 The provision for countercyclical additional capital of insurance companies and additional capital of systemically important insurance institutions shall be stipulated separately.
Article 8 An insurance company that meets the following three regulatory requirements at the same time is a solvency qualified company:
(a) the core solvency adequacy ratio is not less than 50%;
(2) The comprehensive solvency adequacy ratio is not less than100%;
(3) The comprehensive risk rating is above Grade B..
If it does not meet any of the above requirements, it is a company whose solvency is not up to standard.