Insurance compliance means that the behavior of insurance companies, insurance intermediaries, insurance agencies and their employees should comply with laws and regulations, regulatory provisions, self-discipline rules, market practices, internal management systems of companies and ethical norms of honesty and trustworthiness.
Insurance "compliance risk" refers to the risk that a bank may be subject to legal sanctions or regulatory penalties, major financial losses or reputation losses due to its failure to comply with laws and regulations, regulatory requirements, rules, relevant standards formulated by self-regulatory organizations and codes of conduct applicable to its own business activities. From the connotation point of view, compliance risk mainly emphasizes the economic or reputation losses suffered by banks for various reasons that explicitly violate laws, regulations and regulatory rules. This kind of risk is more serious in nature and causes greater losses.
In order to further strengthen the compliance management of insurance companies, the China Insurance Regulatory Commission issued the Measures for the Compliance Management of Insurance Companies (hereinafter referred to as the Measures). The Measures shall come into force on July 1 2065438, and the Guidelines for Compliance Management of Insurance Companies (No.9 1 2008) which came into force on July12008 shall be abolished at the same time. According to the development of the insurance market in recent years and the changes of relevant insurance regulatory rules, the Measures revised the Guidelines for Compliance Management of Insurance Companies. The main revision involves the following four aspects: First, the compliance management framework of "three lines of defense" is clarified. Business departments and branches, compliance management departments and compliance posts, and internal audit departments are required to form "three lines of defense" for compliance management and perform their respective compliance management responsibilities. The second is to improve the requirements for the company's compliance department and compliance personnel. It is stipulated that provincial branches of insurance companies should set up compliance management departments, and explicitly require full-time and part-time compliance personnel of insurance companies. The third is to improve the performance guarantee of compliance management. Improve the responsibilities of the compliance management department of insurance companies, establish a compliance audit mechanism, strengthen the construction of compliance information systems, and enhance the independence of compliance work. The fourth is to strengthen compliance external supervision. Clarify the principles of compliance supervision, improve the regulatory requirements, set corresponding regulatory measures for violations of compliance supervision, and strengthen the supervision of the Insurance Regulatory Bureau on the compliance work of insurance institutions within its jurisdiction. The promulgation and implementation of the Measures is conducive to further improving the insurance supervision system, strengthening and improving the compliance management of insurance companies, improving the level of compliance management of the insurance industry according to law, and ensuring the sustained and standardized development of the insurance industry.