Original title:Bank of China SecuritiesComments on the measures for the Supervision of Internet Insurance Business: it is emphasized that the licensed operation of Internet insurance is beneficial to the leaders of the industry and the forerunner of the channels of traditional insurance enterprises: China Finance Online Co Ltd

Emphasize licensed operation and clarify the classified supervision of business entities. On December 14, the Bancassurance Regulatory Commission formally issued the measures for the Supervision of Internet Insurance Business (hereinafter referred to as the "measures"), which will be formally implemented on February 1, 2021. The method provides for the definition of Internet business, business requirements, marketing publicity and after-sales service. Among them, the main points include: 1) emphasize the licensed operation of institutions. The measures stipulate that the so-called insurance institutions include insurance companies and insurance intermediaries, emphasizing that only the self-operated platforms of insurance institutions can sell insurance products. Remove unlicensed platform institutions; 2) "Internet enterprises licensed by insurance agents in accordance with the law" are added to the scope of insurance agents, emphasizing that insurance agents do not include individual agents. The purpose of this provision is to increase the right of Internet enterprises to apply for insurance agency business qualifications; 3) emphasize the standardization of Internet insurance marketing publicity business behavior.

The purpose of the new regulations is to regulate the misleading and compulsory tying behavior in the original Internet insurance industry, so as to ensure consumers' sense of achievement. Internet insurance business has the characteristics of rapid growth, fragmentation, small high-frequency occurrence and so on. In recent years, with the help of Internet traffic ports, it has widely reached various types of customers. Internet insurance institutions have transitioned from original product providers (providing travel delay insurance, return insurance, etc.) to creating products and services that exceed customer expectations, opening the door to hundreds of millions of insurance consumers' protection.. Standardizing the operation of Internet insurance will help to safeguard the rights and interests of consumers and create a healthy and competitive environment for Internet insurance management.

With the online and offline development of traditional insurance enterprises, the concentration of the Internet insurance industry is expected to increase. 1) traditional insurance companies are encouraged to use Internet tools to integrate their business in different scenarios, and it is expected to expand the field of Internet insurance and realize the integration of online and offline channels by virtue of brand effect and offline channel resources. 2) emphasize holdingLicense to operate Internet insurance business, the elimination of unlicensed third-party institutions, the industry competition pattern will further tend to the licensed head sales platform, the concentration of the Internet insurance industry is expected to increase.

Investment advice:

The introduction of new Internet insurance regulations is conducive to promoting healthy competition in the industry and standardizing market behavior. The emphasis on licensed operation and the elimination of non-licensed institutions are beneficial to two types of companies: 1) the licensed sales platform of Internet insurance benefits from the early layout of channels,License plate value and traffic advantage; 2) online and offline integration of the development of traditional insurance companies are expected to make use of the original brand effect, offline channel resources to broaden the field of Internet insurance. Recommended target:Ping An Insurance、China Pacific Insurance.

Risk suggests that the premium growth rate of guaranteed products is not as fast as expected; the dual impact of market fluctuations on investment returns and valuation

The investment uncertainty of insurance companies brought about by the downward interest rate; the epidemic spread more than expected.