Insurance funds to invest in infrastructure range of relaxing

To further meet the insurance fund long-term configuration requirements, improve insurance services economic and social capabilities, China Insurance Regulatory Commission recently on the "insurance capital indirect investment in infrastructure pilot project management approach" to revise not only eliminated many administrative provisions of insurance funds to invest in infrastructure projects, and further relaxation of the investment.
The main amendments include: First, the simplification of administrative license. According to the results of market-oriented reforms in recent years, the relevant parties explicitly canceled business qualification examination and approval, product release record investment plans, insurance agencies and other investment matters for approval licensing matters. After the revision, the "measures" has no administrative licensing items; the second is to broaden the investment space. Measures shall be original art infrastructure investment narrow, limited to transportation, communications, energy, industry, municipal and environmental protection five high industry concentration, unable to meet the needs of the market. In the premise of risk prevention, China Insurance Regulatory Commission to relax the insurance funds can invest in infrastructure projects in the industry-wide increase government cooperation and social capital (ie PPP mode) and other viable investment model; third is to strengthen risk management and control. Further improve the relevant responsibilities of the parties, the establishment of mechanisms responsible for fiduciary risk, net capital and risk management mechanism reserve mechanism to implement the main market risk control responsibility; Fourth, improve the system of rules. Combined with the actual situation, adjust and improve the relevant provisions of the presentation, and integration of information disclosure and disclosure of the main requirements, standardize information disclosure.
CIRC official said the "measures" Amendment has many important significance, mainly to promote the development of insurance asset management business. Further enhance the vitality of the infrastructure investment plan to stimulate the enthusiasm of insurance asset management institutions, strengthen risk management and control, better participation in the asset management industry competition; relieve pressure on insurers asset allocation. Insurance increase the effective supply of long-term assets, the allocation of funds to meet the insurance needs, deal with asset liability matching assets shortage pressure low interest rate environment; and supporting economic growth steady. Insurance funds to promote a more active participation in national infrastructure and livelihood projects to help moderate expansion of aggregate demand, support the real economy; to promote the insurance industry supply-side structural reforms. Through the development of the asset side of insurance products to further expand the development of space, optimize the supply of insurance services, to enhance the ability of the insurance industry to promote social and economic development services and better meet the growing risk management and financial management needs.
It is understood that since 2006, the indirect investment of insurance funds in infrastructure projects, made good progress. First, a steady increase in business scale, especially after the 2013 registration system reform, business has been rapid development. As of the end of May this year, the cumulative insurance asset management institutions initiated the establishment of infrastructure debt investment plan 300, infrastructure equity investment program 17, the total registration (record) the size of 893.826 billion yuan; the second is the main service the insurance industry achieved remarkable success. As the insurance industry, the creation of asset management products, infrastructure investment plan in line with the characteristics of insurance funds, insurance funds to better meet the configuration requirements. As debt investment plan an average investment period of 754 years, the average annual yield of 6.65%, which greatly improved the insurance asset allocation structure, promote the development of insurance business; the third is the basic risk control. Insurance funds to invest in infrastructure projects focus on safety, the relatively high standard. Among them, the debt subject to debt investments of large enterprises, good liquidity, in addition to credit outside the country, has more than 90% of large enterprises or bank guarantee measures to increase confidence and more fully, the basic investment risk control. It has also been highly recognized by society, and is included in the scope of investment annuity; 4 is to support the real economy. Insurance funds to invest in infrastructure projects mainly in transport, energy and municipal sector, the scale of investment was 399.414 billion yuan, 229.44 billion yuan and 78.11 billion yuan. In the national key projects and key livelihood areas formed a group of influential investment projects, stimulating effect on the steady growth significantly improves the ability of the real economy the insurance industry.