Guiding Opinions of the National Financial Regulatory Administration on Promoting the High-Quality Development of Green Insurance

Guiding Opinions of the National Financial Regulatory Administration on Promoting the High-Quality Development of Green Insurance

(No. 5 [2024] of the State Administration for Financial Regulation)

All local offices of the National Financial Regulatory Administration; all insurance group (holding) companies, insurance companies, and insurance asset management companies; China Banking and Insurance Information Technology Management Co., Ltd., the Shanghai Insurance Exchange, the Insurance Association of China, the Insurance Society of China, the China Association of Actuaries, and the Insurance Asset Management Association of China:

Green insurance collectively refers to the economic activities of the insurance industry that provide risk guarantee and financial support in such respects as environmental resource protection and social governance, operation of the green industry, and green living consumption. For the purposes of implementing the decisions and deployments of the CPC Central Committee and the State Council on promoting green development, fully maximizing the important role of insurance in promoting the comprehensive green transformation of economic and social development, and actively and steadily assisting in achieving carbon dioxide peaking and carbon neutrality, the following opinions are hereby put forward.

I. General requirements

1. Guiding thought. Under the guidance of the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the spirit of the 20th CPC National Congress and the Central Financial Work Conference shall be comprehensively implemented. According to the general deployment of the CPC Central Committee and the State Council on accelerating the promotion of the construction of ecological progress, the principles of green development such as conservation, low-carbon, environmental protection and sustainable development shall be insisted on, the supply-side structural reform of the insurance industry shall be strengthened, a green insurance service system shall be built, the high-quality development of green insurance shall be promoted, support for green, low-carbon and circular economy shall be increased, environmental, social and governance risks shall be prevented, and the quality and effectiveness of green insurance to serve the green transformation of economy and society shall be improved.

2. Basic principles

The systematic concept shall be insisted on and progress shall be sought while maintaining stability. The development of the industry shall be consciously combined with the goal of achieving carbon dioxide peaking and carbon neutrality, the development of green insurance shall be promoted in a systematic and institutionalized manner from a strategic height, and their environmental, social and governance performance shall be concurrently improved. The general tone of seeking progress while maintaining stability shall be insisted on, risk awareness shall be strengthened, and the sustainable development of green insurance shall be actively and steadily promoted.

Demonstration and leadership, and key breakthrough shall be insisted on. Adjustment to measures according to local conditions shall be encouraged, pilot program shall be implemented first, and replicable and popularizable green insurance practical experience shall be formed in an accelerated manner through demonstration and typical promotion. By focusing on key fields and key industries, efforts in risk guarantee of green insurance shall be increased, the industry's risk characteristics and protection needs shall be constantly explored, and service capabilities shall be continuously improved.

Innovation-driven and digital empowerment shall be insisted on. The innovation upon green insurance management, model and service shall be promoted in an accelerated manner, and exploration shall be made for new paths for insurance to support green development. Digital reform shall be accelerated, scientific and technological support shall be increased, the green insurance product system shall be enriched, and the service level of green insurance shall be improved.

Coordinated promotion, opening up and cooperation shall be insisted on. Interaction and cooperation with local governments and relevant industry authorities shall be strengthened, the coordinated development of green insurance and green industry shall be promoted, the orderly connection of green development policies and standards in various fields shall be promoted, interaction among enterprises, universities, and research institutions shall be encouraged, regional coordination shall be strengthened, and external cooperation shall be promoted, to jointly support the development of green insurance.

3. Main goals

By 2027, the green insurance policy support system will be relatively perfect, the service system will be initially established, the risk reduction service and management mechanism will be optimized, the product service innovation ability will be enhanced, a number of green insurance service models with typical demonstration significance will be formed, the growth rate of green insurance risk guarantee and green investment of insurance funds will be higher than the overall growth rate of the industry, and the role in promoting green economic and social transformation will be strengthened.

By 2030, important progress will be made in the development of green insurance, the service system will be basically sound, it will become an important financial means for assisting in the comprehensive green transformation of the economy and society, the level of green insurance risk guarantee and the scale of green investment of insurance funds will be significantly improved, the satisfaction and recognition of green insurance from all walks of life will be significantly improved, and the market influence of green insurance development will be significantly enhanced.

II. Strengthening green insurance guarantee in key fields

4. Enhancing the society's ability to cope with climate change. The development of climate insurance shall be accelerated, risk guarantee for areas implementing the pilot program of climate investment and financing shall be increased, and the national strategy to address climate change shall be served. The development of catastrophe insurance shall be promoted, the coverage of catastrophe insurance shall be expanded, reinsurance shall be utilized to effectively disperse risks, exploration shall be made for expanding the channels of risk diversification by new risk transfer methods such as catastrophe bonds, the formation of a multi-level and multi-dimensional catastrophe risk diversification system shall be promoted, and the industry's capacity to assume catastrophe risks shall be improved. The insurance industry shall strengthen the risk guarantee for public infrastructure, urban housing, agricultural housing, personnel, etc., and actively respond to natural disasters. Meteorological index insurance shall be developed in an orderly manner, and the “insurance + meteorological” service mechanism shall be innovated upon.

5. Ensuring green and low-carbon technological innovation. Innovation upon green equipment, materials and software related technology insurance shall be continuously promoted, to provide risk guarantee for technical research and development, equipment manufacturing, use, operation and maintenance and other links. By focusing on the field of green and low-carbon science and technology, the development of science and technology insurance such as research and development cost losses, intellectual ......