China's banks face important strategic restructuring insurance

Recently, the China Insurance Regulatory Commission is the insurer's investment banking pilot programme for research. Pilot programme to be submitted to the State Council after further improvement. At the same time, the CBRC and the China Insurance Regulatory Commission have jointly drafted the "commercial banks insurance companies equity investment management pilot projects" under study. This fully shows that China's banks in insurance has more than 10 years of exploration, will face important strategic restructuring.

Bank insurance content to be re-defined

Insurance from the bank's initial form, the so-called bank insurance refers to the use of banks and other channels to sell insurance products (life insurance products). At present the concept was generally accepted by the domestic financial sector, which is China's banking and insurance has long been the development of the match. But I believe that the scientific concept of development from the perspective of the broad concept or lose, the two sides and cooperation will not cover all of them. On the general, the insurance business can be divided into areas of insurance products manufacturing and sales sectors, including manufacturing areas, including product design, underwriting and claims, the traditional sense, only insurance companies to create links with the professional, and sales areas can be outsourced Or by other financial institutions to do, not the insurance company's core technology and competitiveness of the host. Banks can also participate in the manufacturing sectors of insurance products to clients of the bank at the end-product at the same time, protection and investment of several functions.

Therefore, according to the author's understanding of the profound meaning of the banking insurance when the bank insurance is a broad concept of insurance - that is, banks should refer to banks or insurance companies to take a mutual penetration of the integration strategy is to fully utilize the advantages of both sides and coordination of resources , Through joint sales channels, for the same customer groups, to provide both banking and insurance characteristics of financial products, in an integrated form of business to meet the diversified financial needs of customers a comprehensive financial services. It is with financial integration and the development of economic globalization, commercial banks and insurance companies among a series of interactive resources, tools and business complex cross-cutting "all-round intermediation", as economic globalization and financial integration and Integration of financial services and innovative products.

Now entered a new stage of strategic restructuring

Compared with developed countries, China's Insurance Development Bank started relatively late, since the introduction in 1995, has experienced three stages. The first stage is from 1995 to 1999 the exploration stage. Bank and insurance companies through the signing of cooperation agreements, the use of the banking branch network to expand market share, the period of cooperation to the collection of premium-based bank, a single product, simple forms of cooperation loose. The second stage is from 1999 to 2005 the rapid growth stage. Started a "silver-cooperation" craze, gradually expanding the scope of cooperation, the products are on the rise, increasing by leaps and bounds show business, from 2000 of 5 billion yuan less than the rapid by the end of 2006 to 98 billion yuan. But still the establishment of cooperation in business development, based on a Qianceng Ci stage. The third stage is the current stage of deep-level cooperation. In June 2006 the State Council "on the insurance industry reform and development of a number of views" after the promulgation, insurance companies and banks on the ownership structure through a mutual penetration, the insurance cooperative banks showing a mixed pattern on the integration of industry trends, products, services, further integration, Gradually changing from simple to more cooperation, cooperation on a deeper level of cooperation capital. At present the China Insurance Regulatory Commission has received from the CBRC to the four banks to insurance companies for equity participation and the drafting of "commercial banks equity investment in insurance companies pilot management approach", indicates that China's banking insurance has entered a new stage of strategic transformation. Today, the insurance as the main business has become the strategic choice of foreign banks and sustained development of one of the important factors, the bank insurance has gradually become a global trend. From international experience, banking insurance to embark on a sustainable development, multi-win-win road to the capital for the establishment of ties of deep cooperation mechanism is the only way, the banks will also deepen the insurance is a product cooperation from the capital toward the process of cooperation.

Development model should be further innovation

Then, in the financial sector integration of mixed trends, China's banking and insurance development of the final form will certainly take the financial holding company model. Financial holding company through subsidiaries can engage in banking, insurance, and other diversified business. Financial holding company model can be broken down into: full integration of all-round banking model, Germany Almighty Bank mode (+ securities business, banking business), the United Kingdom all-round banking model (focus on commercial banking business, securities, insurance and other related business establishment of Company), the United States financial holding company model (through the establishment of a financial holding company, the company set up different subsidiaries below). Financial integration in the context of growing prosperity, from the bank insurance system changes and efficiency point of view, the U.S. financial holding company model should be the development of China's banking insurance more realistic option.

But since the financial holding company, we can not just take bank holding insurance investment bank that is a model for the insurance company model, banks can be taken insurance holding pattern that is, insurance companies investment banking model. As early as October 16, 2006, the CIRC issued a "insurance institutional investors on the equity of commercial banks to inform," allowing insurance firms to invest in state-owned, joint-stock firms and businesses, and other cities not listed bank shares. Since then, the insurance institutions have a total number of banks for equity investment, such as the life of the investment in Guangdong Development Bank, Ping An Insurance, through a series of mergers and acquisitions investment bank will be completely safe in their financial holding structures. However, through more than a year the practice has found a number of issues, for example, despite the "notification" in the provisions of the banking restrictions on shareholding ratio range, but can buy the shares it did not "cap", which gives specific approval The institutional blind spot while the general category of major investment and equity investment, insurance agencies will need to meet the "no more than bodies on the end of the 3% of total assets," "major investment is generally not more than two commercial banks," the provisions; More than 10 percent of the shares will be taken "cases approval" in principle, in the process of implementation there are still some difficulties, have yet to be in the process of practice to further adjust and improve.