The National Financial Regulatory Administration has issued the "Regulations on the Management of Insurance Product Development for Property Insurance Companies".

To protect the lawful rights and interests of insurance consumers, regulate the management of insurance product development by property insurance companies, and improve the quality and efficiency of insurance product supply, the National Financial Regulatory Administration has revised and formed the "Regulations on the Management of Insurance Product Development for Property Insurance Companies." The Regulations propose that the names of clauses and rates developed by property insurance companies shall be clear and concise, objectively and comprehensively reflect the main insurance liabilities, shall not use words that easily cause ambiguity, shall not distort insurance liabilities, and shall not mislead consumers. The wording of clauses shall adhere to standardization and normalization, with rigorous and accurate language. Individual-type clauses shall be easy to understand, clear and explicit, and strengthen the protection of the lawful insurance rights and interests of individual consumers. For content in clauses that exempts or mitigates the insurer's liability, prompts shall be given using text, fonts, symbols, or other conspicuous marks sufficient to attract the policyholder's attention. The original text is as follows: Regulations on the Management of Insurance Product Development for Property Insurance Companies Chapter I General Provisions Article 1 These Regulations are formulated in accordance with the "Insurance Law of the People's Republic of China" and the "Measures for the Administration of Insurance Clauses and Insurance Premium Rates of Property Insurance Companies" for the purpose of protecting the lawful rights and interests of policyholders, insureds, and beneficiaries, and regulating the insurance product development activities of property insurance companies. Article 2 The term "property insurance company" as used in these Regulations refers to a property insurance company established within the territory of the People's Republic of China in accordance with law. Article 3 The term "insurance product" (hereinafter referred to as "product") as used in these Regulations refers to a sales unit developed by a property insurance company, consisting of one or more main insurance policies and possibly attached with several supplementary insurance policies. A main insurance policy refers to insurance clauses and insurance premium rates that can be sold independently and have complete elements. A supplementary insurance policy refers to insurance clauses and insurance premium rates that have a clear correlation with the main insurance policy to which they are attached and cannot be sold independently. Insurance clauses (hereinafter referred to as "clauses") refer to the standard text formulated by a property insurance company to stipulate the rights and obligations of the insurer, policyholder, insured, and beneficiary. Insurance premium rates (hereinafter referred to as "rates") refer to the calculation method by which a property insurance company collects insurance premiums for assuming insurance liabilities. The term "personal insurance" as used in these Regulations refers to short-term health insurance and accident injury insurance that a property insurance company may operate in accordance with law. Article 4 A property insurance company is the entity responsible for developing clauses and rates and shall bear corresponding legal liability for the clauses and rates. Chapter II Basic Requirements for Product Development Article 5 A property insurance company shall adhere to the following principles when developing insurance products: (1) Principle of insurable interest. The insured of property insurance shall have an insurable interest in the subject matter of insurance at the time of the insured event; the policyholder of personal insurance shall have an insurable interest in the insured at the time of conclusion of the insurance contract. (2) Principle of indemnity. For compensatory insurance such as property insurance, compensation shall be limited to the actual loss, and the insured shall not obtain additional benefits through insurance. (3) Principle of good faith. The development of insurance clauses shall uphold honesty and good faith, clearly specify the rights and obligations of the parties to the insurance contract, and shall not use standard clauses to exempt one's own statutory liability, unreasonably aggravate the liability of the policyholder or insured, or exclude the rights enjoyed by the policyholder, insured, and beneficiary in accordance with law. (4) Principle of aleatory contract. There shall be uncertainty as to whether an insured event will occur. (5) Principle of risk-based pricing. Rate determination shall be based on the actual risk level and measurement of insurance liabilities to ensure that premiums match risks. Article 6 A property insurance company shall meet the following requirements when developing clauses and rates: (1) Comply with laws and regulations, be fair and reasonable, not infringe upon the lawful rights and interests of policyholders, insureds, and beneficiaries, and not endanger the financial soundness and solvency of the property insurance company; (2) Conform to insurance principles, adhere to integrity and innovation, respect social morality, not violate public order and good customs, and not harm public interests; (3) Comply with laws, regulations, and relevant provisions of the National Financial Regulatory Administration, and match market demand. Article 7 A property insurance company shall not develop the following products: (1) Where the insured of property insurance does not have a legally recognized interest in the subject matter of insurance, or the policyholder of personal insurance does not have a legally recognized interest in the insured; (2) Where the insured event stipulated in property insurance will not cause actual loss to the insured; (3) Where the insured event stipulated in property insurance will inevitably occur or inevitably not occur; (4) Underwriting speculative risks that have both the possibility of loss and the opportunity for profit; (5) Having no actual protection content and solely aimed at reducing (rates), increasing (rates), or malicious speculation; (6) Promising to return insurance premiums or return other improper benefits if no insured event occurs; (7) Substantively assuming risk protection but not collecting insurance premiums, unless otherwise provided by the National Financial Regulatory Administration; (8) Other circumstances that violate laws and regulations, insurance principles, or public order and good customs. Article 8 Clauses and rates are divided into two categories, individual and non-individual, according to the attributes of the insured. Among them, individual-type refers to clauses and rates where the insured includes natural persons, and non-individual-type refers to clauses and rates where the insured does not include natural persons. Article 9 For the insurance types operated by property insurance companies, property insurance includes motor vehicle insurance, enterprise property insurance, family property insurance, engineering insurance, liability insurance, credit insurance, guarantee insurance, hull insurance, cargo transportation insurance, special risk insurance, agricultural insurance, and other insurance; personal insurance includes short-term health insurance and accident injury insurance. A property insurance company shall determine the insurance type classification of clauses and rates based on the subject matter of insurance, insurance liabilities, proximate cause attribution, etc. Where it is truly impossible to classify into a specific insurance type, it shall be classified as other insurance. Article 10 The names of clauses and rates developed by a property insurance company shall be clear and concise, objectively and comprehensively reflect the main insurance liabilities, shall not use words that easily cause ambiguity, shall not distort insurance liabilities, and shall not mislead consumers. The wording of clauses shall adhere to standardization and normalization, with rigorous and accurate language. Individual-type clauses shall be easy to understand, clear and explicit, and strengthen the protection of the lawful insurance rights and interests of individual consumers. For content in clauses that exempts or mitigates the insurer's liability, prompts shall be given using text, fonts, symbols, or other conspicuous marks sufficient to attract the policyholder's attention. Chapter III Requirements for Main Insurance Clauses and Rates Article 11 The name of a main insurance policy shall conform to the following format: Property insurance company name or abbreviation + (regional name) + description of main insurance liabilities (insurance type) + (version) + (special type description). Content in parentheses is optional. Among them: "Regional name" refers to the operating region of local clauses and rates. "Description of main insurance liabilities" shall cover the main insurance liabilities of the clauses. For agricultural insurance, the attributes and subject matter shall be specified. Where insurance liabilities can be clearly classified into a certain insurance type, the name of the insurance type may be used. "Version" may include content such as applicable specific sales targets, specific business nature, exclusive codes, year numbers, etc. "Special type description" is used to label special types of clauses and rates such as industry model clauses. Article 12 A property insurance company developing main insurance clauses shall refer to the following framework elements: general provisions, subject matter of insurance, insurance liabilities, exclusions, insurance amount/liability limit/compensation limit and deductible (rate), insurance period, insurance premium, insurer's obligations, policyholder's/insured's obligations, claims handling, dispute resolution and applicable law, other matters, definitions, etc. The specific content of clauses may be increased, decreased, or adjusted according to the characteristics of each insurance type. Article 13 A property insurance company shall follow actuarial principles and methods, and scientifically determine main insurance rates and reasonably set additional rates in accordance with the principles of reasonableness, fairness, and adequacy. Article 14 Main insurance rates generally include components such as benchmark rates, adjustment coefficients, and insurance premium calculation formulas, and short-term rates may be set according to actual circumstances. Rate fluctuation rules shall be clear and explicit, and reasonably reflect risk differences. Chapter IV Requirements for Supplementary Insurance Clauses and Rates Article 15 Supplementary insurance policies shall extend, restrict, or adjust the policyholder, insured, subject matter of insurance, insurance liabilities, exclusions, insurance period, claims handling, etc. of the main insurance policy. A property insurance company shall evaluate the necessity of developing supplementary insurance policies. Provisions that explain the main insurance policy and do not involve the circumstances stipulated in the first paragraph of this Article shall, in principle, not be developed as supplementary insurance policies. Article 16 In principle, a property insurance company shall not develop the following supplementary insurance policies: (1) Those where the policyholder or insured is inconsistent with that of the main insurance policy, except for circumstances that extend or restrict the scope of the policyholder or insured; (2) Those that correct errors in the main insurance policy; (3) Those with relatively complete clause framework elements and relatively independent insurance liabilities that should be developed as main insurance policies; (4) Those with weak correlation to the main insurance policy; (5) Other circumstances that the National Financial Regulatory Administration considers should be prohibited. Article 17 Supplementary insurance policies shall, in principle, be classified into insurance types according to their own main insurance liabilities. Article 18 The name of a supplementary insurance policy shall conform to the following format: (1) Supplementary insurance policy attached to a single main insurance policy: main insurance policy name + supplementary + (regional name) + description of main insurance liabilities (insurance type) + (version) + (special type description). (2) Supplementary insurance policy attached to a certain insurance type or multiple main insurance policies within a certain insurance type: property insurance company name or abbreviation + full name/abbreviation of the main insurance type + supplementary + (regional name) + description of main insurance liabilities (insurance type) + (version) + (special type description). The relevant elements shall refer to the requirements for main insurance policy names in Article 11 of these Regulations. Article 19 A property insurance company developing supplementary insurance clauses shall refer to the following framework elements: conditions for attaching the supplementary insurance policy, content of the supplementary insurance policy, relationship between the main insurance policy and the supplementary insurance policy, etc. Article 20 Supplementary insurance rates may include components such as benchmark rates, adjustment coefficients, and insurance premium calculation formulas, or may be expressed as a proportional relationship with the main insurance rate or main insurance premium. Chapter V Product Development Management Requirements Article 21 A property insurance company shall formulate its own product development management system, clearly stipulating the organizational structure, division of functions, workflow, assessment and rewards and penalties, etc. for product development management work. Property insurance companies are encouraged to research and establish product development incentive mechanisms, increase product research and development efforts, and develop insurance products that meet the protection needs of the public and the needs of social development. Article 22 A property insurance company shall establish a product management committee, led by the principal person in charge of the company, with the participation of heads of relevant departments, responsible for deliberating major matters in the company's clause and rate development and management. Article 23 A property insurance company shall designate a specialized department to perform the functions of clause and rate development management, responsible for the centralized management of the entire process of clause and rate research and development, submission for approval and filing, verification and revision, and cleanup and cancellation. The product development department of a property insurance company or the business department performing product development functions shall assign product development personnel responsible for the clause and rate development management work of their product line or business line; each provincial-level branch may assign relevant personnel responsible for research and demonstration of local clauses and rates. Article 24 The product development management process of a property insurance company shall include planning and preparation, research and demonstration, clause development, rate pricing, internal review, submission of clauses and rates for approval and filing, information disclosure, etc. Article 25 A property insurance company shall reasonably determine its product development plan based on market demand and the company's development plan, etc., and adopt scientific research methods to collect, organize, and analyze data and materials such as market demand information and information on similar products. Article 26 A property insurance company shall strengthen research and demonstration for clause and rate development, conduct feasibility and necessity analysis, and avoid developing insurance products with no substantive difference from existing clauses and rates. It shall fully consider the needs of target customer groups, accurately analyze potential risks, research and analyze the impact on asset-liability matching, scientifically formulate risk control measures, and clearly define business management plans and programs for product sales promotion, underwriting, claims, and other stages. Article 27 A property insurance company shall complete the preparation of clauses, rates, and other development materials in accordance with laws, regulations, and regulatory provisions. Article 28 A property insurance company shall establish an internal review mechanism for clause and rate development, and carry out clause review, rate review, and consumer rights protection review, etc. The following clauses and rates shall be submitted to the product management committee for deliberation, and an explanation of the product management committee's deliberation shall be provided in the materials submitted for approval or filing: (1) Those that shall be submitted for approval; (2) Financing credit insurance and financing guarantee insurance; (3) Those with strong innovation, special business models, or high underwriting risks; (4) Those that the Chief Compliance Officer, Chief Actuary, or the functional department for clause and rate development management considers necessary to submit to the product management committee for deliberation; (5) Other matters that the National Financial Regulatory Administration considers should be submitted to the product management committee for deliberation. Article 29 The head office of a property insurance company shall, in accordance with laws, regulations, and regulatory provisions, submit clause and rate materials to the National Financial Regulatory Administration or its provincial-level dispatched offices for approval or filing. When a property insurance company revises approved or filed clauses and rates, it shall submit a comparison table of clause and rate revisions, clearly listing the changes before and after the revision and the reasons for revision. Article 30 The Insurance Association of China formulates and manages industry model clauses for major insurance types. The China Association of Actuaries formulates and manages industry benchmark pure risk loss rates for major insurance types. Where industry model clauses or benchmark pure risk loss rates exist, property insurance companies shall, in principle, use them. Where a property insurance company does not use them, it shall explain in the feasibility report or actuarial report the differences from the industry model clauses or benchmark pure risk loss rates and the reasons for non-use. Where industry model clauses are used, no feasibility report is required. Where industry benchmark pure risk loss rates are used, or where government departments provide rate data, this shall be explained in the actuarial report. Article 31 A property insurance company shall perform product information disclosure work in accordance with the relevant requirements of the "Measures for the Administration of Information Disclosure of Insurance Companies," the "Measures for the Administration of Insurance Sales Conduct," and other relevant provisions. Chapter VI Evaluation, Revision, and Cleanup and Cancellation Article 32 A property insurance company shall, in accordance with the requirements of the regulatory rules for solvency of insurance companies, regularly evaluate the sales situation, cash flow, capital occupation, profit, etc. of products in force with a proportion of signed premiums of 5% or more in the current period. Among them, products on the market for less than two years shall be evaluated at least once every six months, and products on the market for more than two years shall be evaluated at least once a year. For products in force with a proportion of signed premiums of 5% or more in the current period, premium adequacy shall be evaluated at least once a year. Article 33 A property insurance company shall, based on regulatory requirements, market conditions, petition complaints and public opinion reflections, etc., closely track and timely evaluate the compliance and adaptability of its products in force. Products that are no longer suitable for continued sale shall be adjusted or stopped in a timely manner. A property insurance company shall carry out clause and rate cleanup work annually. For those that do not comply with regulatory provisions or harm the lawful rights and interests of consumers, they shall immediately be cleaned up and cancelled while being stopped from use; for clauses and their rates that have not been used for three consecutive years and are not industry models, they shall be timely verified and revised or cleaned up and cancelled. For the above circumstances requiring cleanup and cancellation of clauses and rates, the property insurance company shall update the status of the clauses and rates on the industry platform designated by the National Financial Regulatory Administration within 10 days after cleanup and cancellation. A property insurance company shall, based on historical experience data, operating conditions, reserve extraction, and other actual circumstances, conduct reasonableness evaluation, verification, and adjustment of rates. Article 34 The annual analysis report on insurance clauses and insurance premium rates of a property insurance company shall include the following content: (1) The main circumstances of annual clause and rate development, revision, and cleanup, and a summary detailed table; (2) The annual progress of clause and rate development management work, which shall include major negative public opinion events caused by clauses and rates or administrative regulatory measures taken, as well as the rectification of the corresponding clauses and rates; (3) The work plan for clause and rate development management for the next year; (4) Other matters required to be submitted by the National Financial Regulatory Administration or its provincial-level dispatched offices, or that the property insurance company considers necessary to report. Article 35 The evaluation work carried out by a property insurance company in accordance with Article 32, and the annual analysis report formed in accordance with Article 34, shall both be submitted to the company's product management committee for deliberation. Chapter VII Supervision and Management Article 36 A property insurance company and its branches shall strictly implement the approved or filed clauses and rates, and shall not substantively change the clauses or rates through special agreements, endorsements, agreements, memoranda, or other means. Article 37 The principal person in charge of a property insurance company bears leadership responsibility for the company's clause and rate development management work, the Chief Compliance Officer bears direct responsibility for clause review, the Chief Actuary bears direct responsibility for rate review, the head of the functional department for clause and rate development management of the property insurance company bears direct responsibility for the centralized management of the company's clause and rate development, and the head of the product development department or the business department performing product development functions bears direct responsibility for the clause and rate development management work of their product line or business line. Article 38 A property insurance company shall establish an accountability mechanism for clause and rate development. For situations involving dereliction of duty and failure to fulfill responsibilities, receipt of administrative penalties, triggering concentrated complaints, or producing major negative public opinion, etc., the responsibility of relevant personnel shall be seriously pursued. Article 39 Where a property insurance company and its branches violate the relevant requirements of these Regulations, the National Financial Regulatory Administration and its dispatched offices will take supervisory and management measures or impose administrative penalties in accordance with law. Chapter VIII Supplementary Provisions Article 40 Where there are separate provisions for motor vehicle insurance, agricultural insurance, marine insurance, policy-based credit insurance, short-term health insurance, and accident injury insurance, etc., those provisions shall prevail. Article 41 These Regulations shall be interpreted by the National Financial Regulatory Administration. These Regulations shall come into force on November 1, 2026, and the "Notice of the China Insurance Regulatory Commission on Issuing the Guidelines for the Development of Insurance Products of Property Insurance Companies" (Bao Jian Fa [2016] No. 115) and the "Urgent Notice of the China Insurance Regulatory Commission on Issues Concerning the Regulation of the Development and Sale of Insurance Products of Property Insurance Companies" (Bao Jian Chan Xian [2014] No. 88) shall be repealed simultaneously. This article is edited and selected from the official website of the "National Financial Regulatory Administration." GMTEight Editor: Feng Qiuyi.