CHINA: An Introduction to Insurance (PRC Firms)

2024年中国保险及法律市场观察 

2024 Insurance Law Practice Overview of China 

I. 前言 INTRODUCTION: 

2023年，中国的保险市场见证了重大的发展，与这些发展相关的背景包括监管改革、绿色保险的崛起、数据法的影响以及围绕保险法第五次修订的讨论，等等。监管变化旨在提高透明度和问责性，导致了更严格的承保标准，并改变了保险产品的条款和结构。新的保险合同的引入使得可供选择的产品范围更加多样化，为消费者提供了更专业的保障选项。初级阶段的绿色保险在中国对绿色发展原则和 “双碳” 目标的承诺中找到了独特的增长机会。这与全球朝向可持续和负责任的商业实践的趋势相一致。数据保护法既带来了挑战，也带来了机会。虽然它们限制了保险公司可以积累的数据的性质和数量，但它们也塑造了策略和运营，凸显了数字时代保险行业的复杂动态。拟议中的保险法第五次修订旨在解决其实施过程中出现的实际问题，这体现了提高保险行业运营效率和以消费者为中心的主旨。总的来说，这些发展反映了中国保险市场在复杂和不断变化的环境中前行所表现出来的的韧性和适应性。

In 2023, China's insurance market witnessed significant developments, shaped by regulatory reforms, the rise of green insurance, the impact of data laws and discussions around the fifth amendment to the Insurance Law. Regulatory changes aimed at enhancing transparency and accountability led to stricter underwriting criteria and transformed the terms and structure of insurance products. The introduction of new insurance contracts diversified the range of available products, offering consumers more specialised coverage options. The nascent green insurance sector found unique growth opportunities in China's commitment to green development principles and the "dual carbon" goal. This aligns with global trends towards sustainable and responsible business practices. Data protection laws presented both challenges and opportunities. While they restricted the nature and volume of data insurers could accumulate, they also shaped strategies and operations, underscoring the intricate dynamics of the insurance industry in the digital age. The proposed fifth amendment to the Insurance Law aimed to address practical issues arising from its implementation, signifying a pivotal step towards enhancing operational efficiency and a consumer-first approach in the insurance sector. Overall, these developments reflect China's insurance market's resilience and adaptability in navigating a complex and evolving landscape.

II. 金融监管体系改革 Financial Regulatory System Reform:

2023年5月18日，国家金融监督管理总局在北京正式成立，标志着中国金融监管机构改革的重要一步。国家金融监督管理总局的成立对于优化和调整金融监管机构的职责，加强和完善现代金融监管，提高监管效率，规范金融市场的运行秩序，更好地处理金融风险，保护系统性金融风险的底线，以及更好地保护金融消费者和投资者的合法权益具有重大意义。

这轮金融监管体系改革将进一步实现监管的统一和全覆盖，这将有助于更有效地预防和处理金融机构、金融市场、金融产品等的风险，维持金融体系和实体经济的健康运行，并总结预防和解决重大金融风险的实践经验和成熟做法。

On 18th May 2023, the National Financial Supervision and Administration Bureau was officially established in Beijing, marking an important step in the reform of China's financial regulatory institutions. The establishment of the National Financial Supervision and Administration Bureau is of great significance for optimising and adjusting the responsibilities of financial regulatory institutions, strengthening and improving modern financial supervision, enhancing regulatory efficiency, standardising the operation order of the financial market, better handling financial risks, safeguarding the bottom line of systemic financial risks and better protecting the legitimate rights and interests of financial consumers and investors.

This round of financial regulatory system reform will further achieve the unification and full coverage of supervision, which will help to more effectively prevent and handle the risks of financial institutions, financial markets and financial products. It will also maintain the healthy operation of the financial system and the real economy and summarise the practical experience and mature practices of preventing and resolving major financial risks.

III. 绿色保险的发展 The Development of Green Insurance:

ESG原则的纳入保险行业与其核心业务的基本风险管理和决策过程密切相关。这促使保险公司在承保决策、产品创新和风险评估等领域进行了一系列的修改，这必然会影响承保范围和保险理赔方面的实践。

虽然中国的绿色保险目前还处于初级阶段，但中国对绿色发展原则和“双碳”目标的承诺为这个行业提供了独特的增长机会。

许多与ESG相关的风险是可承保风险，包括由自然灾害和污染引起的环境领域风险、与员工健康和产品责任相关的社会领域风险，以及包括董事责任在内的公司治理领域风险。我们预计未来保险市场上将出现越来越多与ESG相关的产品和服务。

鉴于ESG涵盖了环境和社会中各种利益相关者的利益，它本质上建立了一个监管机制，至少在理论上，这个机制可以比以前的评估标准更有效地规范企业行为。因此，我们预见保险公司将越来越多地将ESG整合到他们未来评估的内部治理和控制机制中。

The incorporation of ESG principles into the insurance sector is intrinsically linked to the fundamental risk management and decision-making processes of its core business. This has prompted insurance firms to undertake a range of modifications in areas such as underwriting decisions, product innovation and risk evaluation, which will inevitably influence insurance coverage and litigation.

While green insurance in China is currently in its nascent stage, the country's commitment to green development principles and the "dual carbon" goal presents a unique growth opportunity for this sector.

A multitude of ESG-related risks are insurable, encompassing environmental risks arising from natural disasters and pollution, social risks related to employee health and product liabilities, and governance risks such as director liabilities. We anticipate the emergence of an increasing number of ESG-related products and services in the insurance market in the future.

Given that ESG encompasses the interests of a wide range of stakeholders in the environment and society, it essentially establishes a regulatory mechanism that could, at least theoretically, more effectively govern corporate behaviour than previous evaluation standards. Consequently, we foresee insurance companies increasingly integrating ESG into their internal governance and control mechanisms for future assessments.

IV. 数据保护法见证着保险人在合规与风险评估中取得新的平衡���的努力 Data Protection Laws Are Evidencing Insurers’ Efforts to Attain Balance in Compliance and Risk Assessment:

在承保领域，数据保护法为保险公司带来了挑战和机会。严格的数据收集规定可能限制保险公司被允许积累的数据的性质和数量，这是准确评估风险的关键因素。依赖大量数据集并利用AI和数据分析的精确承保技术可能会遇到限制。这种情况可能会对产品创新和风险分析产生影响。

此外，由于数据本地化的要求，全球保险公司可能会在跨国整合数据时遇到障碍。这可能对在多个司法管辖区运营并有不同数据保护法的跨国保险公司构成重大挑战。

因此，虽然整个行业都在推动保险公司使用个人数据创新和提供个性化的保单，但他们必须在监管环境中谨慎行事，以确保在合规和准确的风险评估取得平衡。这种创新与合规之间的微妙平衡突显了数字时代保险行业的复杂动态。

在这种情况下，显而易见的是，虽然数据保护法旨在保护个人信息，但也不可避免直接影响到保险公司的策略和运营。因此，在这些监管水域中游弋，不仅需要法律敏锐度，还需要战略远见和适应性。

Within the realm of underwriting, data protection laws present a complex interplay of challenges and opportunities for insurance companies. The rigorous regulations surrounding data collection could potentially restrict the nature and volume of data that insurers are permitted to accumulate, a factor that is crucial for the precise evaluation of risks. Techniques of precision underwriting, which are heavily dependent on extensive datasets and utilise AI and data analytics, might encounter limitations. This scenario could have implications for product innovation and risk profiling.

Furthermore, global insurers may encounter obstacles in consolidating data across international borders due to requirements for data localisation. This could pose significant challenges, particularly for multinational insurance corporations operating in multiple jurisdictions with varying data protection laws.

Consequently, while there is an industry-wide drive for insurers to innovate and offer personalised policies using individual data, they must tread carefully within the regulatory landscape to ensure compliance and accurate risk assessment. This delicate balance between innovation and compliance underscores the intricate dynamics of the insurance industry in the digital age.

In this context, it becomes evident that while data protection laws aim to safeguard personal information, they also inadvertently shape the strategies and operations of insurance companies. As such, navigating these regulatory waters requires not only legal acumen but also strategic foresight and adaptability.

V. 保险法第五次修订正在讨论中 Fifth Amendment to The Insurance Law Is Under Discussion:

保险法即将进行第五次修订，目标是解决在其实施过程中出现的突出的实际问题。从正在进行的业界讨论中，我们了解到这些问题可能包括但不限于保险公司的内部治理、标准条款的问题以及新保险合同的启用。

预计修订将强调透明度和问责性的原则，特别是与保险公司董事会的组成和独立董事的角色有关。这个焦点可能会导致更严格的承保标准，这可能会改变保险产品的条款和结构。

此外，提供更清晰的标准条款，特别是责任免除条款的倡议，预计将简化保险条款并最小化模糊性。启用新类别的保险合同也将扩大和多样化可供选择的保险产品的范围，从而为消费者提供更广泛的专业保障选项。

此外，我们设想，基于有明确定义的标准条款特别是责任免除条款的引入，保险公司可据此有更统一的判断标准做出是否理赔的决定。进一步会减少保险合同争议的产生和理赔、诉讼等理赔费用的支出。需要说明的是，对保险新产品提供的理赔服务，会因为索赔人以及理赔人员对理赔方式的探索和确定需要时间的磨合，可能需要保险公司分配更多的资源提供理赔服务，直到这些做法变得标准化。

本质上，即将对保险法进行的修订标志着提高保险行业运营效率和以消费者为中心的重要一步，同时也促进了更透明、更有责任感的行业环境的形成。

The Insurance Law is poised for its fifth revision, with the objective of addressing salient practical issues that have emerged during its implementation. From the ongoing market discussions, we understand that these issues may encompass, but are not limited to, the internal governance of insurance companies, matters pertaining to standard terms and the incorporation of new insurance contracts.

The amendment is expected to underscore the principles of transparency and accountability, particularly in relation to the composition of the board and the role of independent directors in insurance companies. This focus is likely to result in more stringent underwriting criteria, which could potentially transform the terms and structure of insurance products.

Furthermore, the initiative to provide greater clarity on standard terms, especially exemption clauses, is anticipated to simplify insurance policies and minimise ambiguities. The introduction of new categories of insurance contracts will also broaden and diversify the spectrum of available insurance products, thereby offering consumers a wider array of specialised coverage options.

Moreover, we envisage that with the introduction of well-defined standard terms and exemption clauses, insurers will be furnished with clearer benchmarks for making claims decisions. This could potentially reduce the incidence of disputes and the associated need for defence funding. However, the initial unfamiliarity with claims related to these new product offerings may require insurers to allocate additional resources towards claim defences until these practices become standardised.

In essence, this impending amendment to the Insurance Law signifies a pivotal step towards enhancing the operational efficiency and consumer-first approach of the insurance sector, while simultaneously fostering a more transparent and accountable industry landscape.

VI. 结语 Conclusion: 

展望2024年，中国的保险市场有望进一步发展和转型。预计监管改革将继续进行，保险法第五次修订的实施可能会对行业的运营格局带来重大变化。在中国致力于可持续发展和碳中和的推动下，绿色保险行业预计将逐渐成熟。这可能会导致引入创新的保险产品，以减轻环境风险。数据保护法将继续影响行业，特别是在承保和风险评估方面。保险公司需要在创新的驱动力和遵守这些法规之间找到平衡。总的来说，2024年对中国的保险市场来说将是一个关键的一年，标志着监管的演变、可持续的实践和数字化转型。

Looking ahead to 2024, China's insurance market is poised for further growth and transformation. Regulatory reforms are expected to continue, with the implementation of the fifth amendment to the Insurance Law likely to bring about significant changes in the industry's operational landscape. The green insurance sector is anticipated to mature, driven by China's commitment to sustainable development and carbon neutrality. This will likely lead to the introduction of innovative insurance products designed to mitigate environmental risks. The impact of data protection laws will continue to shape the industry, particularly in the areas of underwriting and risk assessment. Insurers will need to balance the drive for innovation with the need to comply with these regulations. Overall, the year 2024 promises to be a pivotal one for China's insurance market, marked by regulatory evolution, sustainable practices, and digital transformation.