Analysis of consumer credit guarantee insurance risk

1、 Analysis of consumer credit guarantee insurance risk Abstract: Consumer credit guarantee insurance business is facing a long start-up time is not discontinued, slow-run situation, the reasons are many, such as credit foundation is weak, banks blind competition, product design defects, but the real

2、reason is that from the insurance company itself, that is, the management not in place. Strengthen and improve the consumer credit guarantee insurance business management, for preventing and eliminating the risk of the insurance industry to promote the health of the insurance industry has important

3、practical significance. Insurance companies should raise consumer awareness of the importance of credit guarantee insurance; strengthen their internal management; speed up the pace of reform; regulate consumer credit guarantee insurance business activities to ensure the healthy development of consum

4、er credit guarantee insurance business. In recent years, as banks rise of consumer credit, consumer credit guarantee insurance, access to rapid development in China. All insurance companies have begun to establish housing and automobile consumption credit guarantee insurance business, a time of cons

5、umer credit insurance market to ensure diverse and lively. However, from the second half of 2002 the situation began to nosedive. Consumer credit insurance operations and management to ensure there is the beginning of exposure to business risks faced by insurance companies starting to show. If a pro

6、perty insurance company operating since 2001, automobile consumption credit guarantee insurance business, as of the end of May 2003, the cumulative premium income of 1872 million yuan, total compensation 4.59 million yuan, the loss rate of 24.5%. Overdue loans 3296 million, representing 176.1% of pr

7、emium income, of which more than 3 months overdue loans as 2 5.15 million yuan. Consumer credit insurance market to ensure there is a serious problem to the continuing operations of insurance companies and a healthy development, some companies were forced to overall contraction-related businesses. P

8、eoples Insurance, Cheonan companies from 2002 began to straighten out the second half of consumer credit guarantee insurance. Ping An Insurance Co., Ltd., has recently right in some areas of consumer credit guarantee insurance light yellow card. 1, consumer credit guarantee insurance business, the o

9、bstacles facing the development of Competition for a few years ago that everyones “meat and potatoes of how all of a sudden becomes a “chicken ribs mean? The problem is multifaceted: social credit foundation is weak, and individual credit system is not perfect; Bank of blind competition, and violati

10、ons to grant consumer loans and real estate companies and the relaxation of a companys credit investigation; product design defect, the risk asymmetry . However, I believe, the real problem is that from the insurance company itself, that is, the consumer credit guarantee insurance, the risk of lack

11、of knowledge, business management is not strict, non-standardized operation of the market, according to a weak awareness of compliance management. Manage missing due to the risks arising from consumer credit guarantee insurance business is facing major risks. (A) Insurance companies consumer credit

12、guarantee insurance for the risk of lack of knowledge, risk management, a lack of long-term concepts. Consumer Credit guarantee insurance is a high risk business, and the business cycle and long and short is 2,3 years and up to 30 years, during which many factors of uncertainty, risk and lag with gr

13、eat features. Consumer Credit guarantee insurance business, the risks are unique, requiring the company to business and risk management arrangements require long-term thinking, business should be based on long-term, to correctly grasp the basic development trends and cyclical characteristics, to pro

14、perly handle the short-term benefits and long-term goals relationship. , The insurance company in the business of consumer credit guarantee insurance process, the widespread emphasis on short-term benefits (ie, premium income), re-market expansion, light business management, light the phenomenon of

15、the market, the lack of rigorous, business philosophy, can not fully understand and consumer credit guarantee insurance business environment for the companys sound operating and long-term development has brought the potential risks. For example, some grass-roots companies only to see the current sit

16、uation, a good real estate, the residents enthusiastically buying houses, house prices rising steadily the symptoms, but not to the real estate industry into the overall economic development to analyze the overall situation, nor, and local The combined analysis of economic developments, but also not

17、 aware of the real estate industry growth rate of investment appears too high, an increase of unsold houses, house prices rose too fast, as well as low-cost housing in short supply and high-end residential and other structural problems are more vacant, and the Housing real estate projects not do ana

18、lysis, without distinction, eyebrows and beard grabbed the blind expansion of housing, consumer credit guarantee insurance. Recently, the Peoples Bank issued a circular calling for strengthening of the real estate credit business management, the State Council recently also proposed to strengthen the

19、 macro-control of the real estate market is the right real estate investment in overheated bubble phenomenon, a warning should be caused by insurance companies highly valued. (B) An insurance company operating a weak awareness of compliance in accordance with law, unfair competition in the serious m

20、arket disorder. Consumer credit guarantee agency to carry out insurance business mainly rely on bank, agency business usually accounts for more than 90% of total business. Therefore, the co-operation with banks consumer credit guarantee insurance has become a major part of expansion. At present, the

21、 cooperation of the insurance companies and banks are basically adopt the “terms of the agreement manner. As the awareness of insurance companies operating in accordance with law compliance as well as distribution channel is not strong over-dependence on consumer credit guarantee insurance business

22、of serious irregularities in the process. Insurance companies do not strictly enforce the prevailing rates of standard terms, non-compliance with the bank signed the “unequal agreement would otherwise be incurred by the banks some or all of the responsibilities and obligations to be transferred to t

23、he insurance companies themselves, resulting in a huge risk. There are the following performance: 1. To expand insurance coverage will be the responsibility of accidental injury and illness extended performance responsibility. If an insurance company would have only the terms of the insured accident

24、 or illness due to death or permanent loss of ability to work and can not continue to fulfill the repayment obligations as insurance liability, extended for three consecutive months after the end of the insured as long as we carry out or not fully discharged is also paragraph shall be the obligation

25、 liability insurance. 2. Reduce the exclusion of liability, cancel deductible. In terms of consumer credit guarantee insurance, liability exclusion clause is to protect the interests of insurers to prevent the insured and the insured an important aspect of moral hazard. Reduce the exclusion of liabi

26、lity is tantamount to expand the insurers liability insurance to mitigate or reduce the insured and the insured persons moral constraints, an increase of moral hazard faced by the insurer. Meanwhile, the abolition of deductible weakening the risk of the insured persons sense of responsibility, resul

27、ting in the insured persons risk liability absence. 3. A lower rate, generally based on the standard rate to float downward about 30%. 4. To reduce the proportion of down payment or zero down payment. To set a certain percentage of the first payment of consumer credit guarantee insurance business, a

28、n important component of risk management is also an effective means of risk control. Of different populations and different degrees of credit risk level of business, insurance companies, by raising or lowering the proportion of down payment to adjust, you can effectively control the risks. To reduce

29、 the proportion of down payment or even abolish the down payment requirements, which directly increases the insurance companys business risk, increase the difficulty of risk management. 5. High agency fees, and the resulting risk of surrender. Insurance companies in processing housing and automobile

30、 consumption credit guarantee insurance, generally together with underwriting insurance, home insurance and motor vehicle and a one-time collection of premiums, according to an agreement to pay agency fees. It is understood that consumer credit guarantee insurance fee of around 10% -15%, housing ins

31、urance and motor vehicle insurance fee of 20% 30%, generally in the form of cash sitting buckle. If an insured person after the early repayment of bank loans ahead of schedule surrender handle warranty insurance, or the insured in obtaining bank loans, apply for housing after the early insurance or

32、motor vehicle insurance, surrender, the insurance company will face a direct economic losses. If this is concentrated, insurance companies, the business under the current terms of premium income is insufficient to cover even the back premiums, a “red premium. Payment of a huge pressure on the compan

33、ys normal operations will bring difficulties, and may thus result in huge losses. (C) An insurance company guarantees to the consumer credit insurance business management is not strict control is not strong, the measures may not be implemented. Consumer Credit guarantee insurance risk arising is mul

34、tifaceted, requiring the company must have a strong risk management capability. Currently, all consumer credit guarantee insurance companies have set up the corresponding management system, standardize the operation of the business processes, increased operational and training, and to authorize oper

35、ation, centralized management and other measures, and achieved certain results. However, masters situation, some grass-roots companys risk awareness is not strong, extensive management, risk management, guest, did not all aspects of business management, the relevant rules and regulations are not per

36、fect and can not be well implemented. If the management agent, to accommodate the many fewer constraints, there is no establishment of corresponding management system. Not only did not a good proxy of the risk control aspects, but by agreement the bank should bear the responsibilities and obligation

37、s transferred to the insurance companies themselves, has resulted in the consumer credit guarantee insurance business during the banks risk liability absence, thus further weakening the Bank of sense of responsibility. Survey of the insured credit consumer credit guarantee insurance business, an imp

38、ortant part of risk control. On the one hand, Chinas credit fundamentals remain very weak, and the activities of the phenomenon of a serious lack of credit, and individual credit system has not been established, in order to carry out credit insurance companies bring a lot of difficulties in credit i

39、nvestigation work; the other hand, some companies there is a system not to implement or enforce not resolutely, work is not enough solid, meticulous, and related systems can not be well implemented, procedures for investigating a mere formality. For example, some real estate development company empl

40、oyees, family members on behalf of an individual purchase or through inflated building area, inflated floor fraud personal bank loans for housing consumption for the real estate project development. Some unscrupulous car dealers colluded with criminals to use false identity fraud personal bank autom

41、obile consumption loans. When these situations occur, indicating insurance companies in the credit investigation is still part of a larger flaw. Second, strengthen management, the promotion of consumer credit guarantee insurance (A) To raise consumer awareness of the importance of credit guarantee i

42、nsurance. Consumer credit guarantee insurance business in China is still in its infancy, in the proportion of total business volume, low, did not attract enough attention to the parties concerned; consumer credit guarantee insurance business, which has the promotion of consumption, the role of boost

43、ing economic growth has not been fully the play; consumer credit insurance risk to ensure the great and the lag has not received due attention. The insurance sector should be strengthened to ensure consumer credit insurance business of research and the necessity of standing height of the overall eco

44、nomic situation, understanding of consumer credit guarantee insurance business in promoting economic growth, improve peoples living standards and prevent and reduce risks play a role; to stand height of the development in the insurance industry, analysis of consumer credit guarantee insurance busine

45、ss as well as its prospects for the development of the insurance industrys role in promoting the development of; to stand guard against the risk of the insurance industry to promote the healthy development of the height of the insurance industry to raise awareness of the law compliance management, s

46、trengthening and improve business management, regulate market conduct of operations, strengthen their sense of responsibility for consumer credit guarantee insurance. (B) To strengthen the internal management of insurance companies. At present, the existence of consumer credit guarantee insurance is

47、 mainly generated in the management of links, consumer credit guarantee insurance business, the principal risks and risk management. Therefore, the strengthening of consumer credit guarantee insurance business management is to prevent and defuse an important part of the risk and the effective means.

48、 1. A sound management system, standardize operational processes. Consumer credit guarantee insurance risk points as well as business for more complex procedures. A sound management system and standard operating procedures is a business basis and guarantee the healthy development. Insurance companie

49、s must fully understand the risks of consumer credit guarantee insurance business, diversity in the choice of agent, the insured credit investigation, tracking overdue loans management and recovery of such links should be a sound management system, strengthening the training of operational staff to

50、implement the accountability, completely changing the system is not perfect, extensive management, the responsibility is not in place situation. 2. Authorized to operate in centralized management. Consumer Credit guarantee insurance is a high risk business, requiring a higher risk of management capa

51、bilities. Authorized to operate, centralized control risk management is an effective business model choices. Classification authorized to operate by the parent company in accordance with uniform standards for lower-level company to operate the business conducted qualification examination and testing

52、, allowing qualified companies to offer this service; business management are concentrated to the provincial branch offices, should develop specific business management system the establishment of a dedicated business unit is responsible for underwriting and claims, debt recovery and other specific

53、management. 3. We must strengthen the management of agents and distributors do a good job credit investigation. Is necessary to strengthen the business agents and sales guidance to companies, to increase its consumer awareness of the role of credit guarantee insurance, correct business ideas and age

54、nt behavior. Consumer credit guarantee insurance is agents, vendors, expand the scale of operation, an important means to increase sales revenue, but also agents, vendors, an important measure to guard against operational risks. Insurance companies and agents, vendors, equality and mutual benefit be

55、tween the partnership, should respect each other for common development. Credit investigation is conducted in the management of consumer credit guarantee insurance an important part of risk control is an important node. To take full advantage of the community and open platform for enterprises and in

56、dividuals to carry out credit credit credit investigation, as much as possible to expand the scope of information collection policy holders to ensure that the credit rating, objectivity. At the same time, we should strengthen the exchange of information between insurance companies and cooperation to

57、 achieve sharing of information resources. 4. To strengthen market research, timely and experiences with business strategy. Consumer credit guarantee insurance is an emerging business, insurance companies, insufficient accumulation of business data, management, lack of experience. Strengthen the ban

58、king business and consumer credit, consumer credit guarantee insurance, market research, timely detection and sum up the problems in business processes, adjusting the companys business philosophy and management behavior, can effectively prevent the risk of expansion. For example, through the operati

59、ons that occur Pei An analysis found that, France and humans, operation type, engineering machinery Chuxian high rate of business, insurance companies can take sub-customer base, increase the proportion of down payment and collateral conditions to restrict the use of such collateral ways to prevent and reduce the risks that may ar