Banking, insurance, pension finance

Implementation Plan for High Quality Development

According to the Guiding Opinions of the State Administration of Financial Supervision and Administration on the "Five Major Articles" for Banking and Insurance Industry to Do a Good Job in Finance, this implementation plan is formulated to promote banks and insurance institutions to actively carry out pension finance business, improve service quality and efficiency, and support the high-quality development of the silver economy.

1、 Overall requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will comprehensively implement the spirit of the 20th National Congress of the Communist Party of China, the 2nd and 3rd Plenary Sessions of the 20th Central Committee, and the Central Financial Work Conference. We will conscientiously implement the important decisions and arrangements of the Party Central Committee and the State Council on actively responding to population aging, developing the silver haired economy, and improving the well-being of the elderly. We will fully, accurately, and comprehensively implement the new development concept, adhere to the political and people-oriented nature of financial work, focus on serving people's livelihood security, serving the real economy, and serving the national strategy, deepen the structural reform of the financial supply side, adhere to the coordinated promotion, classified policy implementation, legal compliance, and commercial sustainability, vigorously enhance the ability and quality of financial services for China's modernization and aging, and promote the construction of a strong financial country through the high-quality development of banking, insurance, pension finance.

In the next five years, significant achievements will be made in the development of the banking, insurance, and pension finance industries, gradually establishing a banking, insurance, and pension finance system with distinct Chinese characteristics.

Establish a relatively standardized, mature, stable, and efficient pension management service system;

Establish a commercial pension finance system that involves multiple stakeholders and offers a variety of products to effectively meet diverse needs;

Establish a financing and insurance guarantee system that closely links high-quality development of the silver economy with financial services, and mutually supports each other;

Establish a regulatory system that is suitable for China's national conditions, reflects the development characteristics of the banking, insurance, and pension finance industries, and can effectively prevent and control risks and safeguard the financial rights and interests of elderly consumers.

2、 Actively participate in the construction of a multi-level and multi pillar pension insurance system

（1） Actively participate in serving the basic pension insurance system. Banking institutions should leverage their advantages of having a wide range of branches and convenient services, optimize processes, improve services, and continuously enhance the financial service experience of basic pension insurance participants. Banks and insurance institutions participating in the management of basic pension insurance funds must adhere to standardized operations, strengthen risk control, and safeguard the bottom line of pension security. Support eligible commercial banks, insurance institutions, wealth management companies, trust companies, etc. to participate in providing basic pension insurance fund management services.

（2） Enhance the capability of serving enterprise annuity and occupational annuity systems. Banks and insurance institutions should adhere to compliant operations, continuously improve their investment management and risk control capabilities, fully utilize information technology, and optimize services for various participating entities in enterprise annuity and occupational annuity systems. Encourage banks and insurance institutions to enrich the ways of receiving enterprise annuities and occupational annuities, innovate products and services, and explore the provision of long-term or lifelong pension services. Support eligible commercial banks, insurance institutions, wealth management companies, trust companies, etc. to participate in providing enterprise annuity and occupational annuity fund management services.

（3） Promote the sustained and healthy development of the personal pension system. Qualified banking and insurance institutions should vigorously develop personal pension business, enhance participation enthusiasm through various means, and achieve steady growth in the number of fund accounts and deposit scale. Support the development of new and exclusive products that are suitable for the personal pension system, gradually building a product system with different forms, periods, and risk characteristics. Encourage banks and insurance institutions to explore the construction of investment advisory teams, provide investment consulting services in accordance with laws and regulations, and improve the efficiency of personal pension management and accumulation.

（4） Continuously promote the reform of commercial pension finance. Vigorously develop commercial insurance annuities, encourage insurance institutions to create new types of commercial insurance annuities that combine pension risk protection and wealth management functions, and support the development of floating income insurance. Steadily promote the development of specific pension savings pilot businesses. Further expand the pilot of pension financial products, explore the establishment of multiple risk mitigation mechanisms, and support the establishment of investor pension financial accounts. Establish a stable and orderly transfer mechanism for pension financial products to facilitate investors' investment and long-term holding. Support banks and insurance institutions to explore innovative products and services, and facilitate the rational and orderly conversion of various assets into pension resources.

3、 Strengthen financing support and risk protection for the elderly care industry

（5） Increase credit supply in the silver haired economy sector. Supporting banking institutions to reasonably determine loan terms, scientifically utilizing products and services such as revolving loans, annual review loans, installment repayment and interest payments, etc., to more accurately and effectively support the reasonable financing needs of silver haired economic entities. Encourage banking institutions to actively explore the introduction of government financing guarantee mechanisms, expand credit supply in an orderly manner, and support the development of areas such as aging friendly transformation, research and development of smart elderly care equipment, and the use of idle stock sites to renovate elderly care service facilities through the provision of exclusive products and the opening of green channels.

（6） Enrich equity and debt investment methods. Support insurance institutions with strong capital strength and standardized operations, invest steadily and orderly in elderly care institutions, rehabilitation hospitals, specialized hospitals, etc., and participate in the development of home-based, community based, and institutional elderly care services. Supporting insurance institutions to strengthen asset liability management and actively invest in silver economy projects that meet the requirements of elderly care technology innovation and new quality productivity development, based on their own capabilities, and supporting the construction of high-level silver economy industrial parks. Encourage financial leasing companies and others to carry out equipment financing leasing business such as medical and health care, support the trust industry to provide elderly financial services, and promote the development of the elderly care industry. Support pension financial products such as pension financing, and invest in long-term high-quality assets that match the characteristics of pension.

（7） Strengthen the insurance guarantee for the elderly care industry. Gradually improve the insurance security system that is compatible with the high-quality development of the elderly care industry, further optimize product and service supply according to the characteristics and requirements of industry development, expand the scope of security, enrich security responsibilities, and improve the level of security. Insurance institutions should actively develop liability insurance for elderly meal and bath assistance, and enrich personal accident insurance, liability insurance, and property insurance for the elderly in areas such as performances, sports, tourism, travel, as well as specific places and facilities. Support insurance institutions to develop comprehensive insurance for elderly care institutions, encourage the provision of specialized risk reduction services, and assist in improving the level of safety production management.

4、 Improve the level of financial services for the elderly population

（8） Expand the coverage of security for the elderly population. Insurance institutions should actively develop health insurance, personal accident insurance, etc. that are suitable for the risk characteristics, protection needs, and payment ability of the elderly population. Encourage insurance institutions to develop long-term medical insurance and provide stable health protection covering the entire life cycle. Support insurance institutions to develop insurance products with long-term collection functions, meet the needs of personal wealth for pension conversion and collection, explore the connection between pension, health, nursing and other services and insurance payments, and explore the development of commercial long-term care insurance products suitable for home, community and institutional nursing needs.

（9） Optimize financial services for the elderly population. Banks and insurance institutions should strengthen the protection of elderly financial consumers, provide financial products that meet the needs of the elderly population, are easy to understand, and match risks, develop more cautious sales processes, standardize promotion and sales behavior, and strengthen risk warnings. We should implement regulatory requirements, implement Internet websites, mobile Internet applications, and offline outlets, especially those in rural and township areas, to adapt to aging. To optimize the layout of branches, improve the configuration of elderly friendly facilities, retain and improve necessary manual services, upgrade and transform intelligent service terminals, and continuously improve the level of counter services. It is necessary to optimize the use process of mobile Internet applications and improve the level of network service facilitation for the elderly.

（10） Safeguarding the financial rights and interests of the elderly population. Strictly prevent all kinds of illegal financial activities carried out under the name of "pension finance". Coordinate and guide various regions to severely crack down on illegal fundraising and criminal activities involving the elderly, spare no effort to recover lost assets, and effectively safeguard the legitimate rights and interests of the elderly. Strengthen the brand building of the Anti Illegal Fundraising Promotion Month, supervise and guide relevant units, fully utilize various channels and carriers, and carry out anti illegal fundraising promotion activities with a focus on areas such as elderly care. Support commercial banks and other institutions to carry out prepaid fund custody services for elderly care institutions in accordance with laws and regulations, relevant regulatory requirements, and contractual agreements, and provide secure custody services for prepaid funds such as elderly care service fees, deposits, and membership fees.

5、 Establish a sound internal governance system for pension finance business

（11） Improve the organizational system. Banks and insurance institutions should establish a sound coordination mechanism for the special leadership work of pension finance, incorporate pension finance into their operational development strategies and annual key tasks, formulate reasonable plans based on reality, and coordinate and promote the development of various businesses. Banks and insurance institutions should strengthen the construction of their talent teams, leverage their respective advantages, and enhance cooperation in product design, channel construction, marketing management, investment management, risk control, and other aspects. Encourage the establishment of pension finance business units, specialized institutions, etc., standardize the construction of specialized organizational structures for pension finance, and improve the quality and efficiency of development.

（12） Establish a sound management mechanism. Banking institutions should establish a normalized docking mechanism and actively respond to the financial needs of silver haired economic entities. Banks and insurance institutions should establish risk control mechanisms for pension finance business, improve management systems, enrich risk identification, assessment, and monitoring methods, and comprehensively enhance risk control capabilities. We need to improve the implementation of the due diligence exemption system, and establish due diligence recognition standards and exemption situations for innovative businesses. We need to strengthen the management of expenses related to elderly care finance business, appropriately reduce the management fees of commercial elderly care finance products, and the credit financing service fees of elderly care industry operators.

（13） Strengthen performance evaluation. Banks and insurance institutions should establish a sound and scientific performance evaluation system for the development of pension finance. Based on the characteristics and development requirements of pension finance business, they should improve the long-term evaluation mechanism, explore appropriate ways to increase the proportion of commercial pension finance business, pension management business, and loan business of silver haired economic entities in the performance evaluation of branch offices and senior executives. Encourage banks and insurance institutions participating in commercial pension finance pilot projects to appropriately increase the proportion of pilot business in performance evaluation.

（14） Accelerate digital transformation. Banks and insurance institutions should strengthen the technological empowerment of pension finance business, explore the use of technologies such as artificial intelligence and big data, enhance digital business service capabilities, and enrich service scenarios. To establish a sound information protection and management mechanism, and implement full process management of personal information of pension finance consumers. Insurance institutions should strengthen actuarial technology research, gradually improve the accuracy of actuarial assumptions, and establish a traceable and measurable actuarial retrospective mechanism. Establish a comprehensive personal pension, banking, and insurance industry information platform. Promote the establishment of a database for elderly care risks, and explore data sharing in the fields of health, healthcare, and elderly care while ensuring data security and privacy protection.

6、 Strengthen and improve the supervision of pension finance business

（15） Revise and improve institutional rules. In response to the characteristics and risk management requirements of pension finance business, establish and improve relevant regulatory systems, and explore incorporating the development of pension finance business by banks and insurance institutions into the overall regulatory rating system. According to the requirements of commercial insurance annuity sales, investment, risk control, etc., improve the regulatory system, optimize solvency and reserve supervision policies. Develop regulatory standards for commercial insurance annuities, and study and improve statistical standards for property insurance business in the elderly care industry and the elderly care sector.

（16） Strengthen and improve supervision. Resolutely safeguard the bottom line of risks and strengthen the main responsibility of financial institutions for risk management. Strengthen the protection of financial consumer rights, enhance the suitability management of various commercial pension financial products, and improve the matching of product supply and demand. Strengthen off-site supervision of various pension financial businesses of banks and insurance institutions, enhance statistical monitoring, and conduct timely evaluation and inspection. Strengthen the supervision of asset liability management of insurance institutions and guide the optimization of asset allocation structure. Promote pension insurance institutions to focus on the transformation and development of their main business.

（17） Continuously regulate market order. Adhere to strict supervision to promote high-quality development of pension finance. Focusing on key areas and weak links, we will increase our inspection efforts to address issues that disrupt market order, harm the legitimate rights and interests of financial consumers, and have a negative impact on society. We will resolutely investigate and punish all kinds of illegal and irregular behaviors, and effectively protect the legal rights and interests of financial consumers, especially elderly financial consumers.

7、 Building a high-quality development pattern with multi-party collaboration

（18） Strengthen organizational leadership. The State Administration for Financial Regulation strengthens the overall coordination of high-quality development of the banking, insurance, and pension finance industries, and establishes and improves relevant work mechanisms. Each financial regulatory authority should study and formulate measures to promote work in their respective jurisdictions. Each bank and insurance institution should conscientiously fulfill their main responsibilities, scientifically plan, determine the main goals and key work tasks, clarify the completion time limit and responsible person for each item, and ensure the implementation and details of the work.

（19） Optimize the development environment. Financial regulatory authorities should strengthen communication and coordination with local government departments, actively strive to promote support policies for the development of banking, insurance, and pension finance. Industry self regulatory organizations should actively integrate resources, carry out orderly promotion and education of pension finance, standard setting, industry self-discipline, and other work. Encourage regions with mature conditions to pilot pension financial products and services. Support large state-owned banks and insurance institutions to take the lead in business innovation, and encourage other institutions with sufficient capital and standardized operations to participate in an orderly manner. Encourage banks and insurance institutions to integrate resources and create specialized brands for pension finance.

（20） Create a good atmosphere. Each financial regulatory authority should actively promote the exchange and cooperation of pension finance business among banks and insurance institutions within its jurisdiction, explore the establishment of a regulatory evaluation system for the development of pension finance within its jurisdiction based on actual conditions, and conduct regular evaluation and analysis. We should pay attention to the linkage between the upper and lower levels, horizontal communication, timely summarize the development experience of pension finance, actively promote the experience and practices that have achieved significant results in the development of pension finance and have been widely recognized and welcomed by society.

Official interpretation

1、 What is the background of the introduction of the 'Plan'?

In the early stage, the State Administration for Financial Regulation issued the "Guiding Opinions on the 'Five Major Articles' for Banking and Insurance Industry to Do a Good Job in Finance" (hereinafter referred to as the "Guiding Opinions"), which clearly stated that "the State Administration for Financial Regulation will continue to improve the policy system of the' Five Major Articles' and formulate relevant implementation plans". According to the requirements of the "Guiding Opinions", the State Administration of Financial Regulation has conducted extensive research and fully listened to opinions, coordinated the development of pension finance business in the banking and insurance industry in recent years, and based on the diversified pension finance needs of the general public and silver haired economic operators, studied and formulated the "Plan", aiming to do a good job in pension finance for the State Administration of Financial Regulation system and banking and insurance institutions, promote the banking and insurance industry to better serve the construction of a multi-level and multi pillar pension insurance system, support the development of the silver haired economy, and make arrangements to enhance the well-being of the elderly.

2、 What are the main contents of the plan?

The Plan consists of seven parts and twenty articles.

The first part is the overall requirement, which clarifies the work ideas and development goals for the development of pension finance business in the banking and insurance industries in the next five years.

The second part is to actively participate in the construction of a multi-level and multi pillar pension insurance system. Support banks and insurance institutions to actively participate in serving the basic pension insurance system, enhance their ability to serve enterprise annuity and occupational annuity systems, promote the sustained and healthy development of individual pension systems, and continue to promote the reform of commercial pension finance.

The third part is to strengthen financing support and risk protection for the elderly care industry. Request to increase credit supply in the silver economy sector, enrich equity and debt investment methods, and strengthen insurance protection for the pension industry.

The fourth part aims to improve the level of financial services for the elderly population. Request to expand the coverage of elderly protection, optimize financial services for the elderly, and safeguard their financial rights and interests.

The fifth part is to improve the internal governance system of pension finance business. Request to improve the organizational system, enhance management mechanisms, strengthen performance evaluation, and accelerate digital transformation.

The sixth part is to strengthen and improve the supervision of pension finance business. Request to revise and improve institutional rules, strengthen and improve supervision, and continuously regulate market order.

The seventh part is to build a high-quality development pattern of multi-party collaboration. Request to strengthen organizational leadership, optimize the development environment, and create a good atmosphere.

3、 What are the key tasks that the State Administration of Financial Regulation will focus on promoting high-quality development of pension finance in the next step?

One is to promote policy implementation. Guide and promote banks and insurance institutions to rely on their own advantages, carefully plan, actively layout, and actively develop various types of pension finance businesses, continuously improving the quality and efficiency of pension finance development. Steadily promote the pilot of commercial pension finance business, and support banks and insurance institutions to actively explore ways to meet diversified pension needs.

The second is to improve and strengthen supervision. Establish a sound regulatory system that is compatible with the development and risk prevention of pension finance business. Adhere to strict supervision to promote high-quality development, resolutely investigate and punish various illegal and irregular behaviors, regulate market order, and effectively protect the legitimate rights and interests of financial consumers, especially elderly financial consumers.

The third is to optimize the development environment. Strengthen communication and coordination, actively seek support for policies. Based on practical exploration, establish a regulatory evaluation system, and timely summarize and promote good experience and practices. Promote industry self regulatory organizations to carry out orderly publicity and education on pension finance. Encourage regions with mature conditions to pilot pension financial products and services.