What are the management measures for the use of insurance funds?

1. Insurance companies shall include bank deposits (hereinafter referred to as bank deposits) other than demand deposits required for daily operation into the management of investment accounts, strictly implement the systems of credit evaluation, investment decision-making and risk management, and strengthen the management of account opening, fund transfer, document custody and other operational links to ensure compliance operation.

2. When an insurance company handles bank deposit business, the depository bank shall meet the conditions stipulated in Article 7 of the Interim Measures for the Administration of the Use of Insurance Funds, and the long-term credit rating requirements of the last year shall be A or equivalent to A or above.

3. When an insurance company handles bank deposit business, it shall select a commercial bank or other professional financial institution that has obtained the qualification of insurance fund custody to implement third-party custody to prevent the risk of misappropriation of funds. The custody responsibilities include at least document custody, interest settlement and withdrawal, accounting, investment supervision, information reporting, etc.

4. Insurance companies shall not use bank deposits to provide pledge financing, guarantees, entrusted loans to others, or to seek benefits for others. If an insurance company uses bank deposit pledge for its own financing, the incorporated funds shall be mainly used for the needs of temporary adjustment of positions and the payment of large insurance claims, and the financing amount shall be included in the monitoring ratio of financing leverage.

5. Insurance companies shall report bank deposit business information in a timely manner in accordance with regulations. If the insurance company uses bank deposit pledge for its own financing, both the insurance company and the custodian institution shall report on a case-by-case basis.

VI. Relevant industry organizations in the insurance industry shall strengthen the risk monitoring of counterparties to insurance companies' bank deposit business in accordance with law, and include commercial banks that cooperate with insurance companies in handling bank deposit business in violation of regulations in the industry warning list.

7. If the bank deposit business that has been carried out by an insurance company does not comply with the provisions of this notice, it shall submit a rectification plan to the China Insurance Regulatory Commission within one month from the date of issuance of this notice. If the insurance company fails to handle the bank deposit business in accordance with the regulations, the China Insurance Regulatory Commission will impose penalties in accordance with regulations.

8. The credit rating referred to in this notice shall be assessed by a credit rating agency that complies with the provisions of the China Insurance Regulatory Commission, and the branches of foreign banks may refer to the credit rating of their head offices. This notice shall apply to the use of insurance funds by insurance group (holding) companies, insurance asset management companies or other professional institutions entrusted with the management of insurance funds. The capital margin deposit of insurance companies shall be implemented in accordance with the Measures for the Administration of Capital Margin of Insurance Companies.

What is Insurance Funding:

The use of insurance funds refers to the activities of insurance companies in the process of organizing economic compensation, using the temporarily idle part of the accumulated insurance ** for financing or investment to increase the value of funds. It will directly provide funds for economic construction, and at the same time enhance the vitality of insurance enterprises, expand insurance underwriting and solvency, and reduce insurance premiums to better serve the insured. Under the premise of controllable risks, encourage insurance funds to invest directly or indirectly in the capital market, gradually increase the proportion of investment, steadily expand the scale and variety of insurance funds to invest in assets, carry out pilot projects for insurance funds to invest in real estate and venture capital enterprises, and support insurance funds to participate in commercial banks.

Principles for the use of insurance funds:

a) Security.

The principle of safety is the first principle in the use of insurance funds. Because insurance** is the insurer's liability to all insureds. From the quantitative point of view, the total amount of insurance should be consistent with the total amount of future loss compensation and insurance payment, if it cannot be safely returned, it will inevitably affect the economic compensation ability of the insurance company.

In order to ensure the safety of the use of insurance funds, the insurer must do a good job in investment, choose investment projects with higher security, and diversify risks in small, short-term, and form diversification, so as to increase the safety of investment.

2) Profitability.

The main purpose of the use of insurance funds is to make profits. Profitability can bring corporate benefits to insurers and enhance the solvency of insurance companies. This requires the use of insurance funds to select high-efficiency investment projects, and strive to maximize returns within a certain risk limit.

3) Liquidity.

Insurance has the function of economic compensation, and the occurrence of insurance accidents has the characteristics of randomness, which requires the use of insurance funds to maintain sufficient liquidity in order to meet the needs of insurance compensation and payment at any time. Insurers should choose appropriate investment projects according to the different requirements of different businesses for the liquidity of capital utilization.