/blue book preface
In 2020, the global economic situation will change due to the "epidemic", with the focus on engineering and construction. On February 8, at the official website meeting of the National Development and Reform Commission, a Notice on Actively Responding to the Epidemic Situation, Innovating the Bidding Work, and Ensuring the Stable Operation of the Economy (No.NDRC Fa [2020]170) was sent to the Development and Reform Commission of all provinces, autonomous regions, municipalities directly under the Central Government, Xinjiang Production and Construction Corps, the lead department for bidding guidance and coordination, and the lead department for the integration of public resource trading platforms. While fully implementing the return of the bid bond amount, we will vigorously promote the use of letters of guarantee, especially electronic letters of guarantee, to replace cash deposits and realize online submission and online verification. "On February 26th, the Ministry of Housing and Urban-Rural Development issued the Notice on Strengthening the Prevention and Control of COVID-19 Epidemic and Promoting Enterprises to Start Work and Resume Work in an Orderly Way" (J.B.Z. [2020] No.5), emphasizing that "bank guarantee, engineering guarantee company guarantee or engineering guarantee insurance will replace the deposit to reduce the capital occupation of enterprises". To fully resolve the impact of sudden epidemic on China's economy, construction project guarantee insurance and its electronic platform have become one of the "grasping hands for epidemic prevention and resumption of work", and it is also the proper meaning and innovative move of reform and development in the construction field.
In this context, accelerating the implementation of the project guarantee insurance system in the field of construction engineering is not only of urgent significance for implementing the spirit of document notification, but also an inevitable requirement for realizing the reform and development goals in the field of construction engineering. At the same time, it is of great academic value and significance to strengthen the research on engineering guarantee insurance itself.
Based on the above-mentioned initial mission, under the guidance of insurance institute of china, the School of Insurance of Southwestern University of Finance and Economics and Gongbao Technology (Zhejiang) Co., Ltd. set up a research group to carry out exploration and research on construction project guarantee insurance, and the results were compiled into a book, which was published internationally as "Blue Book of Construction Project Guarantee Insurance in China (2020)". Its main contents involve the rise and development of construction project guarantee insurance in China, the subject and object of contract, the model and effect of pilot policy, supervision and self-discipline, positioning and development. The publication of the Blue Book aims to become an "accelerator" for all sectors of society to brainstorm and further effectively promote the development of construction engineering guarantee insurance, effectively enhance the service capabilities of insurance institutions through technological empowerment, and finally optimize the business environment and effectively reduce the burden on enterprises. As the first blue book of construction engineering guarantee insurance in China, the cooperation between industry and university has opened a platform for in-depth exchanges in the field of engineering guarantee insurance. Although the research group has done a lot of work as much as possible, the theoretical research and data of engineering guarantee insurance are relatively scarce, and it is inevitable that there are some inappropriate contents. Please give us your advice.
The first chapter, the rise and development of engineering guarantee insurance in China.
Project guarantee system is a kind of risk guarantee system introduced in the field of construction engineering in China in 1980s. By introducing deposit or third-party guarantor, it aims to solve all kinds of irregular behaviors that have existed for a long time in China's construction market, strengthen market trustworthiness and performance, transfer, disperse, prevent and resolve all kinds of engineering risks, and ensure the quality and safety of engineering construction.
Project guarantee insurance is one of the ways of project guarantee, and it is a kind of contract guarantee insurance with the performance of construction contract as the target. Specifically, project guarantee insurance is a risk transfer mechanism, that is, the insured pays the premium to the insurer, and when the insured fails to fulfill the agreed or legal obligations due to its actions or omissions, causing losses to the insured, the insurer pays the insured. In recent years, the discussion on the legal nature of guarantee insurance has gradually subsided, and basically reached an understanding of the nature of insurance.
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From the perspective of economics, project guarantee insurance is a financial arrangement to share losses and provide economic security.
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From the legal point of view, project guarantee insurance is a kind of contract behavior.
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From the social point of view, project guarantee insurance has the nature of mutual assistance.
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From the perspective of risk management, project guarantee insurance is a method and mechanism of risk management.
Figure 1- 1 Main types of domestic engineering guarantee insurance
In 20 16, the state issued the Notice on Clearing and Standardizing the Deposit in the Field of Engineering Construction, which made it clear that except for the bid bond, performance bond, project quality bond and migrant workers' salary bond established according to laws and regulations, all the deposits that construction enterprises need to pay in engineering construction will be cancelled. Correspondingly, at present, there are four kinds of domestic engineering guarantee insurance: bid guarantee insurance, performance guarantee insurance, quality guarantee insurance and wage payment guarantee insurance for migrant workers.
In addition, the domestic engineering guarantee insurance market is also active in prepayment guarantee insurance and owner's contract payment guarantee insurance.
1980 after the domestic insurance business resumed, the former People's Insurance Company of China tried the project contract guarantee insurance business in foreign-related business. In 2006, "Opinions on Further Implementing the Project Guarantee System in Construction Projects" clearly stated: "The guarantor who provides the project guarantee can be a qualified insurance company registered in People's Republic of China (PRC)." In the following two years, some domestic insurance institutions sporadically provided performance guarantee services in the form of "guarantee insurance performance guarantee", but overall, the research and development, promotion and application of engineering guarantee insurance products were almost at a standstill.
With the improvement of risk management technology and the change of social credit environment, insurance institutions began to be keen on the "touch" of the engineering guarantee insurance market: 20 12. Meiya Property Insurance Co., Ltd. submitted a request to declare some engineering guarantee insurance clauses, which was approved by the regulatory authorities. 20 14 the competent construction department of Wenzhou city, Zhejiang province launched the "performance guarantee insurance for construction projects" provided by Chang' an liability insurance co., ltd. on the basis of the pilot project. Since then, the project guarantee insurance has officially entered the pilot policy blessing period.
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On 20 15, Anhui, Yunnan and Fujian provinces took the lead in introducing pilot projects to ensure supply;
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20 16, Jilin, Sichuan and Zhejiang provinces joined the insurance pilot ranks;
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In 20 17, Xinjiang, Guangxi, Qinghai, Shandong, Hainan, Jiangxi, Hubei, Jiangsu and Tianjin successively issued documents to support the development of engineering guarantee insurance;
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In 20 18, eight provinces (autonomous regions) including Guizhou, Henan, Hunan, Guangdong, Ningxia, Liaoning, Gansu and Heilongjiang successively implemented the project guarantee insurance system.
Project guarantee insurance has become the fastest developing project guarantee method because of its advantages of fast processing speed and no credit occupation. 20 19 "guiding opinions of the Ministry of housing and urban-rural development and other departments on accelerating the implementation of the guarantee system for housing construction and municipal infrastructure projects" puts forward the goal that "by 2020, the substitution rate of various bonds will be significantly improved", which requires speeding up the implementation of the bank guarantee system and implementing the project guarantee company guarantee and project guarantee insurance in areas where conditions permit. By June 2020, 28 provinces (autonomous regions and municipalities directly under the Central Government) have issued policies related to construction project guarantee insurance.
The development of engineering guarantee insurance in China is still in its infancy. At present, it is mainly manifested in the macro trend of "letter of guarantee replacing cash deposit", the middle trend of "competition and development of three major engineering guarantee methods" and the micro trend of "the rise of electronic letter of guarantee service platform".
Chapter two, the subject, object and content of engineering guarantee insurance contract in China.
Project guarantee insurance has now developed into an important emerging force in the project guarantee market, which is embodied as follows:
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The total amount of engineering guarantee insurance business continued to grow. According to some industry data of domestic engineering guarantee insurance in 20 16 -20 19, the overall premium scale of engineering guarantee insurance in the whole industry increased from 10 billion yuan in 20 16 to/kloc-0 in 20 19.
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The main body of the engineering guarantee insurance market is increasing day by day. Based on the total number of insurance companies engaged in engineering guarantee insurance business in China from 20 14 to 20 19, this paper analyzes the development status of the industry, from 1 in 20 14 to 43 as of May 2020.
The development of engineering guarantee insurance system involves many subjects, including insurance contract subjects, such as construction enterprises, insurance companies, construction units and migrant workers; It also includes other subjects of the insurance market, such as insurance intermediaries, technology and management institutions.
Figure 2- 1 Relationship between Subject and Object of Engineering Guarantee Insurance Contract
Construction project guarantee insurance can release the cash flow pressure brought by various project deposits at a lower cost, and does not occupy the credit of enterprise banks, which has important market value for the development of domestic construction enterprises.
Bidding, performance and project quality assurance insurance in project guarantee insurance are mainly to prevent the contractor from breaking the contract and causing corresponding losses to the construction unit, and the insured is the "construction unit"; The wage payment guarantee insurance for migrant workers is to ensure the wage payment of migrant workers, and the insured is a "migrant worker".
In the contract payment guarantee insurance, the construction unit is the insured and the construction enterprise is the insured.
Other subjects in the engineering guarantee insurance market refer to the subjects who participate in the popularization and application of engineering guarantee insurance and provide related services in addition to the contract subjects of engineering guarantee insurance, mainly including insurance intermediaries, technology and management institutions.
Insurance intermediary channel will be an important driving force that can not be ignored in the development of engineering guarantee insurance market. At present, domestic insurance intermediaries lack the accumulation of corresponding professional skills, talents and management strength, and their ability to promote engineering guarantee insurance is still limited, but there is still great room for development in the future.
In the process of engineering guarantee insurance promotion, technical and management institutions provide professional and effective technical and risk management services, which play an important supporting role in insurance market promotion, product function realization and insurance service promotion. They can be mainly divided into three categories: third-party risk management companies and third-party technical service companies.
In the field of engineering guarantee insurance, the third-party risk management company mainly refers to a professional organization entrusted by an insurance company to identify and evaluate the risk factors of engineering guarantee insurance by using professional risk management technology, put forward risk control measures and risk response plans, and provide underwriting basis.
With the rapid development of big data, cloud computing, Internet of Things, artificial intelligence, blockchain and other technologies, the third-party technical service company is a brand-new industry subject, which can provide software and hardware platform services, system technical services, data analysis services and other technical support for traditional insurance institutions and government departments.
In assisting the government to improve its service level, third-party technical service companies can share information with the whole project approval management system and other supervision systems by building a platform of "Internet plus government affairs plus supervision", such as the supervision platform for project deposit information management and the electronic insurance policy service system for bid guarantee insurance, and provide technical solutions for government departments such as data statistics, project risk management and guarantee insurance handling.
The contents of the project guarantee insurance contract mainly include insurance liability, liability exemption, insurance amount and deductible (amount), insurance period, obligations of the insurer, obligations of the applicant and the insured, compensation treatment, etc. Among them, insurance liability is the focus of the insured and the insured, the core difference between different types of products under the engineering guarantee insurance sector, and the main contractual basis for insurance companies to carry out follow-up claims service.
Engineering guarantee insurance covers many links in the engineering contract process, which is suitable for different scenarios and serves specific objects. For investors, the insured and relevant government departments, it has the characteristics of comprehensive insurance coverage and easy understanding, which further embodies the practicability of engineering guarantee insurance in contract design and application.
Chapter three, the present situation and problems of the pilot project of engineering guarantee insurance in China.
With the continuous expansion of the pilot scope of engineering guarantee insurance in the whole country, various localities have been exploring and accumulating in the pilot practice of insurance coverage, and gradually presented seven differentiated characteristics with different emphases:
Figure 3- 1 Seven Features of National Pilot Model
Differentiation characteristics 1: credit evaluation/differential rate.
In the pilot policy opinions in various places, it is generally proposed to implement differentiated rates for construction enterprises through the credit evaluation mechanism, and promote the establishment of a construction market mechanism of "trustworthy incentives and disciplinary action against dishonesty".
Differentiating feature 2: * * Insurance subject and separate underwriting.
When implementing engineering guarantee insurance in various places, most insurance companies are required to adopt the business model of "one insurance institution takes the lead and several insurance institutions jointly form an insurance body"; In some areas, insurance companies are also allowed to adopt a business model of liberalization and decentralized underwriting, so that policyholders have more choices. In addition, insurance companies can effectively prevent and control risks through reinsurance.
Differentiation characteristics 3: insurance mode and product form.
Most of the pilot projects of engineering guarantee insurance in various places put forward the requirements of "advocating online insurance" and "actively developing electronic guarantee"
Differentiation feature 4: dynamic risk management of insurance companies and construction of credit system in construction market.
Insurance companies promote their own dynamic risk management or risk management with the help of the construction of the credit system of the construction market, and become a part of the credit evaluation system of the construction market through interconnection with the relevant government information supervision platform, thus promoting the improvement of the credit system of the construction market.
Differentiation feature 5: Third-party professional organizations.
In the pilot policy opinions in different regions, it is suggested that the risk management and credit evaluation of insurance companies can be undertaken by third-party professional institutions, including third-party credit management institutions, engineering consulting institutions and engineering supervision institutions.
Differentiation feature 6: insurance company qualification ability.
The policy opinions of all localities have the same requirements for the qualifications of insurance companies, that is, they meet the regulatory requirements of the China Banking Regulatory Commission and have specific requirements for their capabilities, which are mainly reflected in "whether they have complete service outlets" and "whether they have rich experience in insurance services in the fields of housing construction and municipal infrastructure projects".
Differentiating feature 7: Insurance institutions shall not provide engineering guarantee insurance for both parties to the same project.
Due to the conflict of interest between the construction unit and the contractor in the same project construction contract, in order to ensure the transaction safety, the pilot documents in some areas require that the same insurance institution shall not provide guarantee insurance for both the contractor and the contracting unit in the same project.
In the process of market practice of engineering guarantee insurance, domestic insurance companies have made various explorations and attempts in business operation and accumulated valuable market operation experience:
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A professional management system has gradually taken shape. The existing business system, underwriting system and reinsurance system of insurance companies have gone through a process of emptying and relearning, and the business management is gradually approaching to refinement and specialization.
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The quality of the team has improved rapidly. Engineering guarantee insurance requires a higher reserve and understanding of cross-border knowledge, and the demand for high-quality sales talents and management talents is increasingly strong.
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Cross-border cooperation has achieved good results. In some areas, pilot insurance companies rely on third-party professional risk management institutions to carry out marketing work, and achieved good results.
At the same time, insurance companies have also shown some problems during the pilot operation:
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Irrational price competition. Judging from the pilot situation of domestic engineering guarantee insurance, the main means of competition for insurance companies is traditional price competition. For the sake of premium scale and market share, in some pilot areas, "one company reduces its price and the industry follows suit", ignoring risk management and insurance services, reducing the adequacy of premium and affecting its solvency.
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Lack of claim experience and case analysis. The speed and quality of insurance claims are important factors affecting the development of engineering guarantee insurance market. However, at present, there are relatively few claims cases in domestic engineering guarantee insurance, and there is also a lack of professional claims talents. Lack of in-depth research and exploration on claims cases, unable to form a systematic claims system and claims process.
Chapter four, supervision and self-discipline of engineering guarantee insurance in China.
At present, the project guarantee insurance shows the characteristics of industry coordination supervision: in addition to the banking supervision department's supervision over the market behavior, solvency and corporate governance of insurance institutions, the construction departments in various pilot areas, such as housing and construction departments, human and social departments, public resource trading centers, transportation departments and water conservancy departments, also participated in the supervision of the project guarantee insurance.
Figure 4- 1 Supervision System of Engineering Guarantee Insurance in China
In engineering guarantee insurance, market behavior supervision is mainly reflected in two aspects: business supervision and product supervision:
In terms of business supervision
From July, 2065438 to July, 2007, the former insurance supervision department issued the Interim Measures for the Supervision of Credit Guarantee Insurance Business, which comprehensively regulated the credit guarantee business other than export credit insurance from the aspects of business rules, internal control management, supervision and management for the first time, changed the ex post supervision thinking that mainly relied on administrative punishment and special rectification in the past, and gradually changed from the result ex post supervision to the process ex post supervision. In May 2020, the Banking Supervision Department issued the Measures for the Supervision of Credit Insurance and Guarantee Insurance Business, which comprehensively revised the supervision of guarantee insurance business, focused on strengthening solvency supervision, and ensured that the development of credit insurance business matched the company's strength and risk management capabilities.
In terms of product supervision
In February 2020, the Banking Supervision Department issued the Notice on Further Strengthening and Improving the Product Supervision of Property Insurance Companies, which made it clear that the insurance supervision department of local banks would be responsible for the filing and supervision of engineering guarantee insurance from March. According to the new regulations, in the future, the insurance supervision departments of local banks will focus on the terms, rates and risk control of engineering guarantee insurance, and supervise products by tracking and monitoring the products of companies within their jurisdiction, organizing and implementing off-site inspections of products of companies within their jurisdiction, and being responsible for product-related information disclosure, letters and complaints, etc.
During the implementation of project guarantee insurance, housing and urban construction departments at all levels, human resources and social security departments, banks and insurance supervision departments, etc. All parties work together to coordinate and solve the contradictions and problems encountered in the implementation of project guarantee insurance in a timely manner. Each pilot area has formulated differentiated regulatory requirements for different types of insurance in light of local conditions.
The self-regulatory supervision of the insurance industry mainly relies on the national insurance self-regulatory organization-insurance association of china. In the field of engineering guarantee insurance, insurance industry associations can play an active role in improving the service quality of the industry and providing industry model standard clauses.
At the same time, the engineering guarantee insurance industry also conducts self-discipline supervision by forming an insurance consortium (insurance body).
As an innovative way of construction market supervision, engineering guarantee insurance will help improve the efficiency of government supervision in the whole construction industry, form a new impetus for the transformation and upgrading of government supervision methods, and gradually become an important means of government transformation in the new era.
Chapter five, the development and characteristics of engineering guarantee insurance system in the United States and South Korea.
Compared with the development of engineering guarantee system in China, some developed countries began to explore this system as early as the end of 19, and have formed a relatively complete system and system, which is worth learning from in China.
American engineering guarantee system has been practiced for more than 100 years, and has formed a relatively complete system in many aspects such as legislative construction, market supervision and functional application, and achieved success. As the main insurer in the engineering guarantee market, insurance companies account for about 90% of the market. Legislative construction is an important guarantee for the rapid development of engineering guarantee insurance in the United States, that is, special national laws are set up for the engineering guarantee system to ensure the "compulsory execution" of government-contracted projects (including new construction, reconstruction and repair of buildings and public facilities).
In Asia, South Korea is the main representative country with earlier, faster and more mature engineering guarantee insurance market. As early as 1969, Korea Fidelity Guarantee Company (formerly SGI) was established, and its guarantee insurance service officially became the beginning of Korean engineering guarantee insurance market business.
In 2004, South Korea's guaranteed insurance market premium income reached US$ 777 million, which tied for the top five in the world with the United States, Italy, Mexico and France. In South Korea's overall guarantee insurance market, engineering guarantee insurance accounts for more than two-thirds of the market share, so it has also achieved considerable market development. After 2004, South Korea's engineering guarantee insurance market maintained steady growth, and by 20 18, the total market premium was about 2.4 billion US dollars. Therefore, exploring and analyzing the development path of Korean engineering guarantee insurance market is also of great significance for China.
Chapter six: Explore the orientation, development path and mode of engineering guarantee insurance in China.
The development of engineering guarantee insurance in China is still in its infancy. At present, it is mainly manifested in the macro trend of "letter of guarantee replacing cash deposit", the middle trend of "competition and development of three major engineering guarantee methods" and the micro trend of "the rise of electronic letter of guarantee service platform".
With the continuous progress of electronic bidding in China, electronic bid guarantee insurance has become a development trend, which has promoted the prosperity of electronic guarantee service platform. At present, the electronic operation modes of domestic engineering bid guarantee insurance are mainly divided into three types, namely, the traditional "1+N" mode, * * * insurance subject "1+ 1+"mode and new industry joint development "1+". Each of the three modes has its own characteristics, which has important reference value for the market development of domestic project bid guarantee insurance.
Figure 6- 1 Electronic Operation Mode of Domestic Project Bid Guarantee Insurance
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From June, 2065438 to June, 2007, the electronic insurance policy system was launched in all regions of China through the housing and urban-rural construction departments and public resource trading centers. In the same year, Yunnan and Guangxi opened the function of electronic insurance policy mainly by building an engineering insurance module on the integrated platform of integrity supervision under construction; Jianggan District of Hangzhou began to provide self-help bidding guarantee service on the electronic bidding platform of banks.
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20 18,18 On July 2nd, Dalian Public Resource Trading Center in Liaoning Province launched the first electronic guarantee service system in China, and the first electronic bid guarantee insurance policy in China was born. In the same year, the public resource trading centers in Leshan City, Mawei District, Fuzhou City and other places in Sichuan Province also launched the electronic bid guarantee insurance policy system.
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2065 438+08 2065 438+08 Leshan Public Resource Trading Center Bidding to Ensure the Online Electronic Policy Service Platform. Leshan bid guarantee insurance electronic policy service platform is built according to the "Electronic Bidding Measures" system, which is completely embedded in the electronic service platform for public resource transactions. Bidders can complete insurance without switching system operations, and the regulatory authorities have realized centralized management and dynamic supervision of bid guarantee insurance policies.
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On July 1, 2065438, Hunan Changsha public * * * resource trading center launched an electronic policy system for bid guarantee insurance, adopting the mode of 1+ 1+N pioneered in China, that is, "one trading center+one electronic guarantee service platform+multiple financial service institutions". In this mode, the public resource trading platform is first connected with the third-party platform, and then connected with various financial institutions through the third-party platform. The system is open to all financial institutions, and orders are randomly distributed. This model relies on the technical advantages of professional third-party platforms to promote the construction of trading platforms to be more perfect, safe and convenient; At the same time, the public resource trading center only needs to formulate rules, do a good job of supervision and management, and realize "orderly supervision and reasonable division of labor". The operation mode of electronic letter of guarantee in Changsha Public Resource Trading Center has aroused extensive discussion throughout the country. 20 19 In the third and fourth quarters, many domestic public resource trading centers began to learn from or follow the "Changsha Model", and the domestic attention and discussion on electronic guarantee increased rapidly.
In 2020, under the pattern of "epidemic", the intelligentization, online and electronization of engineering guarantee insurance has become an industry trend. It will be the general trend to apply digital technology to improve risk control, actuarial and service level, and realize the business transformation, model innovation and industrial integration of engineering guarantee insurance. For insurance institutions, the future is bound to be a dispute of "technology empowerment".
Conclusion:
Due to the limitation of publication space, the above contents are taken from the Blue Book of China Construction Project Guarantee Insurance (2020). Please refer to the full version of the Blue Book for relevant quotation marks. For more exciting content, please send the keyword "Blue Book+Your Contact Information" to :LPS@cngongbao.com, the special email address of the research group, and the research group will contact you in time.
School of Insurance, Southwestern University of Finance and Economics and Industrial Insurance Technology (Zhejiang) Co., Ltd. all rights reserved, and shall not be copied or reproduced without authorization.