Reporter Qian Linhao of our newspaper reported that the China Banking and Insurance Regulatory Commission recently issued the "Notice on Launching the Pilot Business of Liability Switching between Life Insurance and Long-term Care Insurance" (hereinafter referred to as the "Notice"), deciding to carry out life insurance and long-term care insurance from May 1, 2023. The long-term care insurance liability conversion business (hereinafter referred to as the "conversion business") is piloted, and the pilot period is tentatively scheduled for two years.
According to reports, the China Banking and Insurance Regulatory Commission organized industry forces to fully demonstrate the feasibility of business conversion, and researched and clarified a series of requirements in terms of responsibility conversion methods, applicable product scope, nursing status determination conditions, business operation procedures, etc., which are reflected in the "Notice" middle. Specifically: First, based on whether the insured enters the nursing state, the policy discount method and the actuarial equivalent method are respectively designed to meet the diverse needs of nursing protection. The second is to choose individual general life insurance for pilot purposes, which is easy for policyholders and insureds to understand, and the amount of nursing benefits is easy to calculate. The third is to use specific diseases and accidental disabilities as the basic conditions for determining nursing status. This not only takes into account the unified standards of the industry, but also can effectively cover the disabled population and is easy to operate. At the same time, personal insurance companies are encouraged to expand the above basic judgment conditions based on their own risk control capabilities. The fourth is to encourage personal insurance companies to add the use of policy discounting methods for liability conversion in insurance clauses when developing new general life insurance products to improve the ability to provide long-term care security.
The "Notice" shows that life insurance companies operating individual general life insurance can participate in the pilot program after designing a pilot plan in accordance with the requirements of the "Notice", submitting the pilot plan to the China Banking and Insurance Regulatory Commission, and completing relevant product registration. At the same time, the "Notice" also clearly requires that personal insurance companies participating in the pilot should establish a conversion business operation system and internal management mechanism, strengthen business training and compliance assessment, and do a good job in data accumulation and analysis, information disclosure, and pilot progress reports.
The China Banking and Insurance Regulatory Commission stated that in the next step, it will closely track the progress of the pilot, standardize business operations, strengthen supervision and management, and effectively safeguard the legitimate rights and interests of insurance consumers. At the same time, we should promptly summarize the pilot experience, improve the regulatory system, study and expand the product range applicable to the conversion business, promote the steady development of the conversion business, and guide the personal insurance industry to contribute to the implementation of the national strategy of actively responding to the aging population.
