How will the government regulate the participation of insurance funds in the long term rental market

As China accelerates the establishment of a housing system that combines rental and purchase, the long-term rental market has attracted the attention of capital from all sides. On June 1, the China Banking and Insurance Regulatory Commission (CBIRC) issued the Notice on Matters Concerning the Participation of Insurance Funds in the Long-term Rental Market, setting basic rules for insurance funds to participate in this market.

The Notice on Matters Concerning the Participation of Insurance Funds in the Long-term Rental Market clarifies that insurance companies indirectly participate in the long-term rental market through direct investment and insurance asset management institutions through the initiation and establishment of debt investment plans, equity investment plans, asset-backed plans, insurance private placements, etc., and the long-term rental housing projects invested in should be located in large and medium-sized pilot cities with a net inflow of population, and meet the requirements of efficiency, ownership, land use nature and approval procedures.

In terms of fund management, the China Banking and Insurance Regulatory Commission requires insurance institutions to supervise and urge all types of entities to standardize project construction management and fund allocation, implement special fund account management and monitoring of the whole process of capital entry and exit, and ensure that insurance funds are operated in a closed manner and earmarked for special purposes. The regulator also clarified that insurance institutions should establish exclusive positions to be responsible for the post-investment management of investment projects, and establish a whole-process management system to prevent risks at key nodes. **：

China News Network.

Banks, **, insurance, collectively referred to as the three major financial institutions, the state is now vigorously supporting the insurance industry, because of statistics, China's insurance per capita is less than 1, the United States per capita 3-4, Japan per capita 6, if you can, look for the recent snow disaster related to insurance mentions for reference.

The interconnection between the insurance market and the capital market is also mainly reflected in two aspects: first, in the insurance portfolio, bond assets occupy the dominant position; Insurance funds are the main funds in the bond market**. On the one hand, because bonds have the characteristics of rich term structure and stable income, which is in line with the principle of safety and profitability of the use of insurance funds, the bond market is mainly used for the use of insurance funds; Moreover, since countries usually do not have special restrictions on the purchase of bonds by insurance funds, the bond market has become the choice for the gradual expansion of the use of insurance funds.

On the other hand, the active participation of insurance funds will help promote the development and improvement of the bond market. A large number of insurance funds continue to enter the bond market steadily, which will help improve the depth of the bond market, improve the efficiency of capital allocation in the bond market, and promote the healthy development of the bond market. The insurance funds entering the bond market include long-term life insurance funds suitable for investing in long-term bonds, as well as short-term funds such as property insurance and accident insurance suitable for investing in short-term bonds, so the participation of insurance institutions in the bond market is all-round.

Second, the market is an important investment channel for insurance funds. On the one hand, the development of the market is inseparable from the strong participation and support of insurance funds. On the other hand, the market is the main investment channel for insurance funds.

In 2016, insurance funds increased investment in the real economy, and played an active role in supporting major national strategies such as poverty alleviation, industrial upgrading, people's livelihood projects, the "Belt and Road", the coordinated development of Beijing-Tianjin-Hebei, and the construction of the Yangtze River Economic Belt. The China Insurance Regulatory Commission (CIRC) revised and promulgated the Administrative Measures for the Pilot Project of Indirect Investment of Insurance Funds in Infrastructure Projects (CIRC Decree [2006] No. 1), which broadened the scope of industries in which insurance funds can invest in infrastructure projects, and added feasible investment models such as ** and social capital partnership (i.e., PPP model). In 2016, a total of 152 insurance asset management products were registered with the Insurance Asset Management Association of China, a year-on-year increase. the registered scale was 317.4 billion yuan, a year-on-year increase; A total of 651 insurance asset management products have been registered, with a registered scale of 1,652.5 billion yuan, and the ability of insurance funds to serve economic and social development has been further enhanced, and projects supporting major national strategies have been frequently implemented.

In the face of the severe challenges of asset shortage and project shortage, the Insurance Asset Management Association of China has developed and built a national asset management information sharing platform to connect funders, project parties and product parties. At present, the platform has launched more than 1,600 projects, with an investment scale of 3,920.4 billion yuan and more than 360 institutional users on the platform. As an investment platform for the insurance industry, China Insurance Investment Co., Ltd., which was formally established on January 4 and is responsible for the establishment, fundraising and management of China's insurance investment, guides insurance funds to support major livelihood projects and infrastructure construction, promote industrial transformation and upgrading, and serve the "Belt and Road" strategy, achieving a win-win situation of economic and social benefits.

As of the end of December, the total scale of projects that have been issued has exceeded 150 billion yuan.

This is carried out in accordance with the policy of the state.

One. Principles of Insurance** Application.

The use of insurance is the behavior of insurance companies using idle funds to carry out various forms of investment and financing to increase profits.

1.Security principles.

2.The principle of profitability.

3.Liquidity principle.

Two. The form in which insurance is used.

1.Buy bonds.

2.Investment**.

3.Invest in real estate.

4.Loan. 5.Deposit.

Note: In addition to the above-mentioned forms of application, insurance can also be used to invest in various types, interbank lending, foreign exchange, etc.

Three. Insurance** application structure.

Due to the different asset management methods of insurance enterprises by the insurance authorities of various countries, the asset structure of insurance enterprises in different countries is also different, and it is difficult to judge which is more reasonable, but can only be explained by the situation of each country and region.

Countries and regions strictly control the proportion of investment in various investment methods to total assets, and the legislative orientation focuses on ensuring the safety and liquidity of the use of insurance, so as to ensure the legitimate rights and interests of the insured, and on this basis, pursue the efficiency of the use of funds. Article 105 of the Insurance Law of the People's Republic of China and Article 1 of the Regulations on the Administration of Insurance Companies also stipulate this.

Four. Conditions of use of insurance**.

Although the use of insurance has its necessity and possibility, it still needs to meet certain conditions to turn this possibility into reality. Such conditions mainly include: market conditions, policy conditions, talent conditions, and management conditions.

1. Characteristics of thought.

Under the socialist market economy system, the basic characteristics of China's insurance business ideology are as follows:

1. Market-oriented, arrange insurance business activities according to the needs of the insurance market.

2. Take competition as a means to survive and develop in market competition.

3. Take economic benefits as the center, and deal with the relationship between the benefits of insurance enterprises and their social benefits.

4. Take the law as the criterion and regulate all the business activities of insurance enterprises.

2. Characteristics of behavior.

1. Insurance business activities are a special kind of labor activities.

2. Insurance operating assets are liabilities.

3. The calculation of insurance operating costs and profits is special.

4. Insurance operations are decentralized and extensive.

The characteristics are as follows:

1. The main body of commercial insurance is a commercial insurance company.

2. The insurance relationship reflected in commercial insurance is reflected through the insurance contract.

3. The object of commercial insurance can be people and things (including tangible and intangible), and the specific subject matter is people's life and body, property, and property-related interests, responsibilities, credit, etc.

4. The operation of commercial insurance should be aimed at profit, and it is necessary to obtain the maximum profit to ensure that the insured enjoys the greatest economic security.

1. Characteristics of thought.

Under the socialist market economy system, the basic characteristics of China's insurance business ideology are as follows:

1. Take the market as the guide, arrange insurance business activities according to the needs of the insurance market 2, take competition as a means to survive and develop in the market competition 3, take economic benefits as the center, and handle the relationship between the insurance company's own benefits and social benefits 4, take the law as the criterion, and standardize all the business activities of insurance enterprises.

2. Characteristics of behavior.

1. Insurance business activities are a special kind of labor activities.

2. Insurance operating assets are liabilities.

3. The calculation of insurance operating costs and profits is special.

4. Insurance operations are decentralized and extensive.

1. Underwriting profits.

When a customer pays one or several insurance premiums for a certain period of time, the insurance company collects the insurance premiums paid by a large number of customers, and the insurance company pays the agreed compensation as soon as an insured accident occurs. If the insurance company's claim expense is less than the insurance premium income from the beginning to the end, the difference becomes the insurance company's "underwriting profit".

2. Investment profits.

The time between when the insurance company collects the premium and when the insurance company pays the premium, the insurance company can invest the insurance** to make a profit. Return on investment is the only important part of an insurance company's profits, so to speak, for most insurance companies, the return on investment is the only part of their profits.

3. Reinsurance.

In order to diversify the risk, the insurance company re-insures some large underwriting units to another insurance company. The company that accepts this policy is a reinsurance company, which generally appears more in property insurance.

China's Insurance Law stipulates that an insurance company may engage in insurance business activities within the scope of the approved insurance business, and the insurance company may operate ceding insurance with the approval of the financial supervision and administration department. Reinsurance business of ceded insurance.

The liability of the insurance company for each dangerous unit, that is, for the maximum loss that may be caused by each insured accident, shall not exceed 10% of the total amount of actual capital plus provident fund, and the excess part shall be reinsured in accordance with the law. In addition to life insurance business, the insurance company shall reinsurance 20% of each insurance business it underwrites.

1. Insurance is first of all mutual. The earliest form of insurance was supposed to be in the form of a mutual aid association, in which members paid a certain membership fee on a regular basis, and when one of the members was in trouble and needed help, the mutual aid association would take a sum of money from the membership fee to help him. This money is much more than the dues paid by this person.

Therefore, there is the mutual aid characteristic of "one person for many, many for one".

2. Insurance is legal, and insurance is a contractual act, just like a contract in the market.

3. Insurance is economical, and the purpose of purchasing insurance is to get economic compensation.

4. Commodity, which is the exchange relationship between the insurer and the policyholder;

5. Scientific, the determination of insurance premiums is based on scientific mathematical calculations.

The basic characteristics of insurance business thinking.

The performance is as follows: 1. Market-oriented, arrange insurance business activities according to the needs of the insurance market;

2. Take competition as a means to survive and develop in market competition.

3. Take economic benefits as the center, and deal with the relationship between the benefits of insurance enterprises and their social benefits.

4. Take the law as the criterion and regulate all the business activities of insurance enterprises.