Insurance companies must do what they can to carry out “insurance + pension community business”
[ad_1]
Recently, the China Banking and Insurance Regulatory Commission issued the “Notice on Matters Concerning Regulating the Sales of Insurance Products by Insurance Companies Connected with the Elderly Care Community Service Business (Draft for Comment)” to various insurance companies, setting thresholds and negative lists for insurance companies to carry out elderly care community business. Net assets, comprehensive solvency adequacy ratio, corporate governance assessment results and other aspects put forward regulatory requirements for “insurance + pension community business”.
“Migratory bird-style sojourn” and “integration of medical care and elderly care”… Such an ideal picture of a free and unrestrained life for the elderly is gradually coming into reality with the model of “insurance + elderly care community business”. The insurance pension community is a comprehensive service community that integrates multiple functions such as residence, pension and nursing, and is established within a certain geographical range by investment and actual control by insurance institutions. The sales of insurance products by insurance companies connect to the service business of elderly care communities, which means that insurance companies sell insurance products and provide value-added services such as the rights and interests of living in elderly care communities to policyholders who have paid a certain amount of premiums for purchasing related products. At present, the domestic insurance products connected to retirement communities are mainly annuity insurance and whole life insurance.
Insurance companies have inherent advantages in deploying retirement communities. Elderly care communities have a large investment scale, long return period, and weak capital liquidity, while insurance funds are characterized by long-duration liabilities, large volume, and strong stability, which meet the needs of the elderly care industry for funds and are conducive to supporting the elderly care communities to achieve economies of scale and sustain long-term operations. Even so, it is not easy for insurance companies to deal with the problems of large initial investment and slow recovery of costs. At the same time, under the asset-heavy model, insurance companies buy land to build their own elderly care communities, integrating the three roles of investors, developers, and operators, and the accumulation of risks is inevitable. Therefore, how to control and isolate risks, keep the bottom line of safety in retirement communities, and protect the life of the insured in their later years should become the focus of the regulators and the insurance industry.
To carry out “insurance + elderly care community business”, insurance companies must base themselves on their main business and return to their origins. Through the development of pension communities, insurance companies combine virtual insurance products with the physical pension industry, connect upward with pension, medical care, nursing insurance and other products, and drive down industries such as universities for the elderly and tourism for the elderly, which can extend the industrial chain and obtain added value . So many operating links and such a large industry span have put forward high requirements on the operating capabilities of insurance companies. To this end, the regulatory authorities have requested that insurance companies operating senior care communities through investment and construction should provide senior care services in the form of setting up professional pension subsidiaries. “Insurance returns to insurance, while pensions focus on pensions.” Entrusting professional matters to professionals is more conducive to giving full play to the insurance protection function and improving the service capabilities and service levels of pension communities.
Insurance companies should carry out “insurance + elderly care community business” according to their capabilities and prevent risks. Elderly care community services that match the company’s capital strength and operational management capabilities should be developed to achieve the unity of operational and social benefits. At the same time, fully consider various factors that affect the supply capacity of elderly care community services and customer occupancy needs, form a constraint mechanism that matches the scale of sales of insurance products with the supply capacity of elderly care community services, and determine a reasonable scale range through classified calculations and stress tests. It is necessary to avoid the failure to provide accommodation for customers as agreed in the future due to problems such as the inability of the elderly care community to provide housing, and also to prevent the lack of funds in the later operation that will reduce the service quality of the elderly care community.
At present, the “insurance + pension community business” is still in its infancy, most of which are aimed at high-income groups, and the entry threshold is relatively high. From the perspective of development trends, it is necessary for insurance companies to explore and optimize resource integration, reduce management costs, find a more reasonable profit model, and extend to low- and middle-income groups to meet the multi-level pension needs of the elderly.
[ad_2]
Source link