The State Financial Supervisory Administration issued the “Regulations on the Administration of Insurance Product Development for Property Insurance Companies”
The Zhitong Finance App learned that in order to protect the legitimate rights and interests of insurance consumers, standardize the development and management of insurance products by property insurance companies, and improve the supply quality and efficiency of insurance products, the State Administration of Financial Supervision revised and formed the “Regulations on the Development and Administration of Insurance Products for Property Insurance Companies”. The “Regulations” suggest that the terms and rates developed by financial insurance companies should be clear, objectively and comprehensively reflect the main insurance liability, not use terms that are likely to cause confusion, must not misinterpret insurance liability, and must not mislead consumers. The wording of the clauses should adhere to standardization and standardization, and the text should be strict and accurate. Personal provisions should be easy to understand, clear and clear, and strengthen the protection of individual consumers' legal insurance rights and interests. Text, font, symbols, or other obvious signs sufficient to draw the attention of the policyholder shall be used to indicate the content of the clause that exonerates or mitigates the insurer's liability.
The original text is as follows:
Property insurance company insurance product development management regulations
Chapter I General Provisions
Article 1. These Provisions are formulated in accordance with the “Insurance Law of the People's Republic of China” and “Administrative Measures on Insurance Clauses and Insurance Rates of Property Insurance Companies” in order to protect the legal rights and interests of policyholders, insured persons and beneficiaries and regulate the development of insurance products by property insurance companies.
Article 2 A financial insurance company referred to in these Regulations refers to a property insurance company established by law within the People's Republic of China.
Article 3 An insurance product (hereinafter referred to as a product) referred to in this regulation refers to a sales unit developed by a financial insurance company, composed of one or more main insurances, to which a number of additional insurances may be attached.
Main insurance refers to insurance terms and insurance premiums that can be sold independently and have complete elements. Additional insurance refers to insurance clauses and insurance premiums that are clearly related to the attached main insurance and cannot be sold independently.
An insurance clause (hereinafter referred to as a clause) refers to a formal text drawn up by a financial insurance company that stipulates the rights and obligations of the insurer, policyholder, insured person and beneficiary.
The insurance premium rate (hereinafter referred to as the rate) refers to the calculation method by which a financial insurance company assumes the insurance liability to collect insurance premiums.
Personal insurance referred to in this regulation refers to short-term health insurance and accident insurance that financial insurance companies can operate according to law.
Article 4 Financial insurance companies are the main developers of the terms and rates, and bear corresponding legal responsibility for the terms and rates.
Chapter II: Basic Requirements for Product Development
Article 5 Financial insurance companies shall adhere to the following principles when developing insurance products:
(1) The principle of insurance benefits. An insured person of property insurance shall have an insurance interest in the subject matter of the insurance when an insured event occurs; an insured person of personal insurance shall have an insurance interest in the insured when an insurance contract is concluded.
(2) The principle of compensation for losses. Compensation for compensatory insurance such as property insurance shall be limited to actual losses, and the insured shall not obtain additional benefits through the insurance.
(3) The principle of honesty and credit. The development of insurance clauses should uphold honesty and abide by credit, clearly specify the rights and obligations of the parties to an insurance contract, and must not use formal clauses to exempt themselves from legal liability, unreasonably increase the liability of the policyholder or insured person, or exclude the rights enjoyed by the policyholder, the insured person, and the beneficiary in accordance with law.
(4) The principle of a lucky contract. There should be uncertainty as to whether an insured event occurred.
(5) Risk pricing principles. The rate determination should be based on actual risk levels and insurance liability estimates to ensure that premiums match risk.
Article 6. The development terms and rates of financial insurance companies shall meet the following requirements:
(1) Comply with the law, be fair and reasonable, do not infringe on the legitimate rights and interests of policyholders, insured persons and beneficiaries, and do not endanger the financial stability and solvency of financial insurance companies;
(2) Conforms to the principles of insurance, adheres to integrity and innovation, respects social morality, does not violate public order and morals, and does not harm the public interest of society;
(3) Comply with laws and regulations and relevant regulations of the State Financial Supervisory Authority and match market needs.
Article 7 Financial insurance companies shall not develop the following products:
(1) The insured person of property insurance does not have a legally recognized interest in the subject matter of the insurance, and the insured person of personal insurance has no legally recognized interest in the insured;
(2) An insured event under a property insurance agreement will not cause actual loss to the insured;
(3) An insured event as stipulated in the property insurance agreement must occur or must not occur;
(4) Insure speculative risks involving both possible losses and profit opportunities;
(5) There is no actual guarantee; the purpose is simply price reduction (fee), price increase (fee), or malicious speculation;
(6) Promise to return insurance premiums or other improper benefits without insurance;
(7) Assuming actual risk guarantees but not charging insurance premiums, except as otherwise provided by the State Financial Supervisory Administration;
(8) Other violations of laws and regulations, insurance principles, or public order and morals.
Article 8. The rates stipulated in Article 8 are divided into two categories, individual and non-individual, according to the attributes of the insured person. Among them, an individual refers to the insured person's clause rate that includes a natural person, and a non-human means that the insured person does not include a natural person's clause rate.
Article 9. Types of insurance operated by financial insurance companies. Property insurance includes motor vehicle insurance, corporate property insurance, family property insurance, engineering insurance, liability insurance, credit insurance, guarantee insurance, ship insurance, cargo transportation insurance, special risk insurance, agricultural insurance, and other insurance; personal insurance includes short-term health insurance and accident insurance.
Financial insurance companies should classify insurance types based on the insurance subject matter, insurance liability, and proximate cause attribution. If it is true that it cannot be classified as a specific type of insurance, it is classified as another insurance.
Article 10. The names of the terms and rates developed by financial insurance companies shall be clear, objectively and comprehensively reflect the main insurance liability, must not use terms that are likely to cause confusion, must not misinterpret insurance liability, and must not mislead consumers.
The wording of the clauses should adhere to standardization and standardization, and the text should be strict and accurate. Personal provisions should be easy to understand, clear and clear, and strengthen the protection of individual consumers' legal insurance rights and interests.
Text, font, symbols, or other obvious signs sufficient to draw the attention of the policyholder shall be used to indicate the content of the clause that exonerates or mitigates the insurer's liability.
Chapter III Main Insurance Clauses Rate Requirements
Article 11 The name of the main insurance shall conform to the following format:
Financial insurance company name or abbreviation + (geographical name) +main insurance liability description (insurance type) + (version) + (special type description).
The bracketed content is an optional element. Among them:
“Regional name” means an operating area with local terms and rates.
The “description of the main insurance liability” shall cover the main insurance liability of the clause. Among them, agricultural insurance shall specify the attributes and targets. Where insurance liability can be clearly classified as a certain type of insurance, the name of the insurance type may be used.
“Version” may include applicable content such as specific sales target, specific business nature, exclusive code, year number, etc.
“Special Type Instructions” are used to mark rates for special types of terms, such as industry model clauses.
Article 12: Financial insurance companies develop the main insurance provisions with reference to the following framework elements: general provisions, insurance subject matter, insurance liability, liability exemption, insurance amount/liability/compensation limit and deductible amount (rate), insurance period, insurance premiums, insurer obligations, policyholder/insured obligations, compensation handling, dispute handling and application of the law, other matters, interpretations, etc.
The details of the terms may be increased, decreased or adjusted according to the characteristics of each type of insurance.
Article 13 Financial insurance companies shall follow actuarial principles and methods, scientifically determine main insurance rates in accordance with the principles of rationality, fairness and sufficiency, and reasonably set additional rates.
Article 14 The main insurance rate generally includes components such as the base rate, adjustment factor, and insurance premium calculation formula, etc., and short-term rates may be set according to actual conditions. The rate fluctuation rules should be clear and unequivocal, and reasonably reflect differences in risk.
Chapter IV Additional Insurance Clauses Rate Requirements
Article 15 Additional insurance shall extend, limit, or adjust the applicant, insured person, insurance liability, exemption from liability, insurance period, compensation processing, etc. of the main insurance.
Financial insurance companies should evaluate the necessity of developing additional insurance. Agreements that do not cover the circumstances stipulated in paragraph 1 of this section, such as an explanation of the main insurance, should not, in principle, be developed as additional insurance.
Article 16 In principle, financial insurance companies shall not develop the following additional insurance:
(1) Where there is a discrepancy with the applicant or insured person of the main insurance, except in cases where the scope of the policyholder or insured person is extended or limited;
(2) Correcting the main insurance error;
(3) Where the elements of the clause framework are relatively complete, the insurance liability is relatively independent, and should be developed as the main insurance;
(4) Not strongly related to the main insurance;
(5) Other circumstances which the State Financial Supervisory Administration believes should be prohibited.
Article 17 In principle, additional insurance types shall be divided according to the main insurance liability of the additional insurance itself.
Article 18. The name of additional insurance shall conform to the following format:
(1) Additional insurance attached to a single main insurance: main insurance name+additional+ (geographical name) +main insurance liability description (insurance type) + (version) + (special type description).
(2) Additional insurance attached to a certain type of insurance or multiple main insurances in a certain type of insurance: financial insurance company name or abbreviation+full name/abbreviation of the main insurance type + addition+ (geographical name) + (version) + (version) + (special type description).
All relevant elements shall refer to the requirements of Article 11 of these Regulations regarding the name of the main insurance.
Article 19. Financial insurance companies develop additional insurance clauses referring to the following framework elements: conditions for applying for additional insurance, content of additional insurance, relationship between main insurance and additional insurance, etc.
Article 20 The additional insurance rate may include components such as the base rate, adjustment factor, insurance premium calculation formula, etc., or be expressed as a proportional relationship with the main insurance rate or the main insurance premium.
Chapter V Product Development Management Requirements
Article 21 A financial insurance company shall establish the company's product development management system and clearly stipulate the organizational structure, division of functions, work processes, assessment rewards and punishments for product development and management. Encourage financial insurance companies to research and establish incentive mechanisms for product development, increase product research and development efforts, and develop insurance products that meet the security needs of the public and social development needs.
Article 22 A financial insurance company shall establish a product management committee, led by the main person in charge of the company, with the participation of heads of relevant departments to review important matters relating to the development and management of the company's terms and rates.
Article 23 A financial insurance company shall appoint a special department to perform the functions of managing the development of terms and rates, and shall be responsible for centralized management of the entire process of research and development of terms and rates, submission for approval and filing, verification and revision, and clean-up and cancellation.
The product development department of a financial insurance company or a business department that performs product development functions shall be assigned product developers to be responsible for developing and managing the terms and rates of this product line or business line; each provincial branch may assign relevant personnel to be responsible for local terms and rate research and verification.
Article 24 The product development and management process of a financial insurance company shall include plan preparation, research and verification, development of terms, rate pricing, internal review, submission of terms and rates for approval and filing, information disclosure, etc.
Article 25 A financial insurance company shall reasonably determine the company's product development plan based on market demand and company development plans, etc., and adopt scientific research methods to collect, collate and analyze data such as market demand information and similar product information.
Article 26 Financial insurance companies shall strengthen research and demonstration on the development of terms and rates, do a good job of analyzing the feasibility and necessity, and avoid developing insurance products that are not substantially different from existing terms and rates. Fully consider the needs of target customer groups, accurately analyze potential risks, study and analyze the impact on the balance and liability matching situation, scientifically formulate risk control measures, and clarify management plans and plans in product sales and promotion, underwriting, and claims processing.
Article 27 Financial insurance companies shall prepare complete terms, rates and other development materials in accordance with laws, regulations and supervisory regulations.
Article 28 Financial insurance companies shall establish an internal review mechanism for the development of terms and rates, and carry out tasks such as review of provisions, rate reviews, and consumer rights protection reviews.
The following terms and rates shall be submitted to the Product Management Committee for review, and an explanation of the review by the Product Management Committee shall be provided in the submission for approval or filing materials:
(1) Where it should be submitted for approval;
(2) Financial credit insurance and financing guarantee insurance;
(3) Highly innovative, special business model, or high underwriting risk;
(4) Where the chief compliance officer, chief actuary, or the functional department of terms and rate development management deems it necessary to submit it to the Product Management Committee for review;
(5) Other matters that the State Financial Supervisory Administration believes should be submitted to the Product Management Committee for consideration.
Article 29 The head office of a financial insurance company shall submit the terms and rate materials to the State Financial Supervision and Administration or its provincial dispatching agency for approval or filing in accordance with laws, regulations and supervisory regulations.
When revising approved or filed terms and rates, financial insurance companies shall submit a revised comparison table of terms and rates, clearly showing the details of the changes before and after the revisions and the reasons for the revisions.
Article 30. The China Insurance Industry Association formulates and manages industry model clauses for major types of insurance. The China Association of Actuaries establishes and manages industry-standard pure risk loss rates for major insurance types.
Where there are industry model clauses or benchmark pure risk loss rates, financial insurance companies should, in principle, use them. If the financial insurance company has not used it, the difference in the pure risk loss rate with the industry model clause or benchmark and the reason for not using it shall be explained in the feasibility report or actuarial report.
Where industry model clauses are used, there is no need to submit a feasibility report. Where an industry benchmark pure risk loss rate is used, or where rate data is provided by a government department, it shall be explained in the actuarial report.
Article 31 Financial insurance companies shall do a good job of disclosing product information in accordance with the “Administrative Measures on Information Disclosure of Insurance Companies”, “Measures for the Administration of Insurance Sales Conduct” and other relevant requirements.
Chapter 6 Evaluation, Revision, and Cancellation
Article 32 A financial insurance company shall, in accordance with the requirements of the insurance companies' solvency supervision rules, regularly evaluate the sales situation, cash flow, capital occupation, profits, etc. of products on sale that account for at least 5% of current contract premiums. Among them, products that have been on the market for less than two years are evaluated at least every six months, and products that have been on the market for more than two years are evaluated at least once a year. Premium adequacy should be assessed at least once a year for products on sale that account for 5% or more of the current subscription premium.
Article 33 Financial insurance companies shall closely follow up and promptly evaluate the compliance and adaptability of the products sold by the company in accordance with regulatory requirements, market conditions, letters, complaints, and public opinion feedback. Timely adjust or discontinue sales of products that are unsuitable for continued sales.
Financial insurance companies shall carry out clean-up work on terms and rates every year, and immediately clean up and cancel those that do not comply with regulatory regulations and damage the legitimate rights and interests of consumers; promptly verify, revise, or clean up and cancel clauses and rates that have not been used for three consecutive years and are not used in an industry model. In the above situation where the cancellation clause rate needs to be cleared, the financial insurance company shall update the rate status on the industry platform designated by the State Financial Supervision and Administration within 10 days after the cancellation.
Financial insurance companies shall rationally evaluate, verify and adjust rates based on actual conditions such as historical empirical data, operating conditions, and reserve withdrawals.
Article 34 The annual analysis report on insurance policies and insurance premiums of financial insurance companies shall include the following content:
(1) The main situation and summary schedule for the development, revision and clean-up of annual terms and rates;
(2) The development and management of annual terms and rates shall include major negative public opinion incidents or administrative supervision measures taken due to the terms and rates, as well as the rectification of the corresponding terms and rates;
(3) The work plan for the development and management of terms and rates for the next year;
(4) Other matters required to be reported by the State Administration of Financial Supervision and Administration or its provincial dispatching agency, or that the financial insurance company believes need to be reported.
Article 35 The evaluation work carried out by a financial insurance company in accordance with Article 32 and the annual analysis report formed in accordance with Article 34 shall be submitted to the Company's Product Management Committee for review.
Chapter 7. Supervision and Management
Article 36 Financial insurance companies and their branches shall strictly implement approved or filed terms and rates, and shall not substantially change the terms or rates through special agreements, approvals, agreements, memorandums, etc.
Article 37 The main person in charge of a financial insurance company is responsible for leading the company's terms and rate development and management work, the chief compliance officer is directly responsible for the rate review, the chief actuary is directly responsible for the rate review, the head of the financial insurance company's terms and rate development management department is directly responsible for the centralized management of the company's terms and rate development, and the head of the product development department or business department performing product development functions is directly responsible for the term rate development and management of this product line or business line.
Article 38 Financial insurance companies shall establish an accountability mechanism for developing terms and rates, and shall seriously investigate the responsibility of relevant personnel for acts of negligence of duty and responsibility, which are subject to administrative punishment, cause centralized complaints, or generate significant negative public opinion.
Article 39 Where a financial insurance company and its branches violate the relevant requirements of these Regulations, the State Financial Supervision and Administration and its dispatched agencies shall take supervisory and administrative measures or impose administrative penalties in accordance with law.
Chapter 8 Supplementary Provisions
Article 40 Where motor vehicle insurance, agricultural insurance, marine insurance, policy credit insurance, short-term health insurance, accident insurance, etc. are otherwise stipulated, those provisions shall apply.
Article 41 The State Financial Supervision and Administration shall be responsible for interpreting these regulations. This regulation came into effect on November 1, 2026, and the “Notice of the China Insurance Regulatory Commission on Issuing the 'Guidelines for the Development of Insurance Products for Property Insurance Companies'” (Insurance Regulatory Commission (2016) No. 115) and the “China Insurance Regulatory Commission's Emergency Notice on Issues Relating to Regulating the Development and Sale of Insurance Products by Property Insurance Companies” (Insurance and Industrial Insurance (2014) No. 88) were abolished at the same time.
This article was selected from the official website of the “China Financial Supervisory Administration”. Zhitong Finance Editor: Feng Qiuyi.