Xinhua News Agency, Beijing, April 25 (Reporters Zhang Qianqian and Li Yanxia) The State Administration for Financial Supervision issued the "Notice on Strengthening the Supervision of Universal Personal Insurance" on the 25th to standardize the development of universal insurance products. The notice allows insurance companies to adjust the minimum guaranteed interest rate for universal insurance products when meeting the corresponding constraints, effectively preventing interest rate spread losses.

It is understood that universal insurance is a type of personal insurance, and the premium can be added or the insurance amount can be adjusted from time to time. At the same time, a separate policy account is established, and as agreed in the contract, part or all of the policy account value can be obtained. The policy account value provides a minimum return guarantee, and the minimum guarantee interest rate shall not be negative.

The head of relevant departments and bureaus of the State Administration for Financial Regulation said that in recent years, universal insurance has better met the insurance needs of the people, but some universal insurance businesses still have problems, such as the protection function needs to be strengthened, the account operation is not standardized, and the use of a few universal insurance funds is more radical. In order to strictly supervise universal insurance, the State Administration for Financial Regulation issued a notice to promote the sustainable and healthy development of universal insurance.

The notice clearly states that in order to strengthen asset and liability management and protect the long-term interests of customers, insurance companies can set a guarantee period for the minimum guarantee interest rate of universal insurance, and can reasonably adjust the minimum guarantee interest rate after the guarantee period expires. Insurance companies should fully remind customers of risks when selling such products, and should promptly inform the reasons for the adjustment and provide customer service when adjusting the minimum guaranteed interest rate.

The notice proposes that insurance companies are prohibited from developing universal insurance with a period of less than 5 years, and encourage the extension of the actual expiration of the policy by reasonably adjusting the insurance refund fees and policy continuous rewards and other product design elements; the company is required to reasonably and prudently determine the universal insurance settlement interest rate based on the actual investment situation of the account, and strictly regulate the use of special reserves.

In terms of capital use supervision, the notice proposes to strengthen centralized supervision and non-standard investment supervision, and strictly set upper limits for the use of universal insurance funds; strengthen related transaction supervision, and prohibit improper related transactions through multi-layer nesting, channel business, etc. At the same time, a "negative list" for universal insurance sales will be formulated in response to the problem of irregular universal insurance sales.

The heads of relevant departments and bureaus of the State Administration for Financial Regulation stated that the new and old divisions will be implemented and the implementation of the system will be carried out steadily and prudently. For existing businesses that do not meet the requirements of the notice, a one-year transition period will be given to ensure the smooth operation of the personal insurance market. In order to prevent incremental risks, newly approved or registered products during the transition period are required to comply with the notice.