The China Insurance Regulatory Commission took over the business and funds of Taijia Insurance, the leading taxi insurance company this morning (7th). Zhang Yunzheng, the Chief Executive Officer of the China Insurance Regulatory Commission, stated that due to Taijia’s investment and market deployment in violation of statutory requirements, there is a lack of internal governance, according to the insurance industry. The takeover of the ordinance will maintain the normal operation of Taiga. This is the third time the insurance regulatory agency takes over the insurance company. This is also the case after more than 12 years.
"Hong Kong 01" was informed that the China Insurance Regulatory Commission had earlier requested Taiga to transfer its US$154 million offshore private account back to its Hong Kong account.
Zhang pointed out that if the response would violate the insurance industry regulations, and the China Insurance Regulatory Commission would take action if it noticed that the solvency rate of insurance companies had fallen.
Regarding Taiga's reprimand of the Insurance Regulatory Bureau for making things difficult this afternoon, Zhang said, "I don't want to talk over the air, it doesn't make sense."
Zhang Hongzheng pointed out that at 9 am this morning, a manager was appointed to take over all the affairs and assets of Taiga Insurance. He pointed out that through general supervision of market work and market intelligence, the China Insurance Regulatory Commission discovered that Taiga's investment activities and capital allocation may violate the statutory provisions of the insurance industry regulations. Require.
He continued to point out that Taiga’s internal governance is seriously lacking, so it is reasonable to appoint Deloitte Guan Huang Chen Fang as the manager for reasons of public interest, so that Taiga insurance can operate normally and smoothly, and the market remains stable. The interests are protected, and the handover will be smooth this morning.
"Hong Kong 01" obtained a letter from the Insurance Regulatory Bureau to Taiga on January 4, requesting Taiga to transfer more than 154 million U.S. dollars of assets from offshore private currency accounts to the company's Bank of China Hong Kong account, but after Taiga transferred the funds back , And cancel the instruction.
Zhang said that there are requirements for supervision and that the internal information of insurance companies cannot be released to the public.
However, Zhang said that insurance companies cannot leave the industry for investment. The investment depends on whether there is sufficient liquidity and whether it is a high-risk investment category. "You don't know if you do insurance." It is impossible to continue to do it with investment subsidies.
The Insurance Regulatory Bureau once again took over the insurance company after 12 years. The last time was Starlight Insurance in 2009, and it was also the main underwriting taxi insurance.
(Photo by Yu Junliang)
Zhang said that Taiga Insurance had difficulties in its business at an earlier time, and its solvency has not been at the optimal stage. Therefore, Taiga Insurance has already imposed additional requirements on Taiga Insurance, including the need to place a statutory deposit, as well as the use and deployment of its assets. Impose restrictions.
In the afternoon press conference of Taijia Insurance, he reprimanded the Insurance Regulatory Bureau for making things difficult, and pointed out that he would report to the Independent Commission Against Corruption. Zhang retorted, "Our supervision is the most transparent, and it is a bit difficult for people?" All work is related to regulations and mechanisms, and individuals are also prevented. The regulation of bribery regulations, "there is no making things difficult for individuals to observe the law", which means that law enforcement agencies do their own things.
As for whether Taiga will sell or dissolve in the future, Li Jiaen, the representative of Deloitte Guanhuang and Chenfang Certified Public Accountants, said that it is necessary to understand the financial situation of Taiga first. It is expected that it will become clearer in more than a month. Health believes that it is not difficult to resume business
Li Jiaen, the representative of Deloitte Guanhuang and Chenfang Certified Public Accountants, has been appointed as a manager to take over Taiga, saying that the handover will be smooth this morning and hope the old management will continue to cooperate.
(Photo by Yu Junliang)
Zhang Hongzheng pointed out that Taiga 8 has become car insurance, underwriting approximately 11,000 taxis, accounting for 60% of the taxi market, and the rest is employee compensation insurance, but the overall insurance market accounts for 1.43%, which is not a large scale. As of the end of 2021, there is 4.1 Ten thousand insurance policies, including 38,000 auto insurance and 560 employees’ compensation insurance.
The business will continue under the takeover of the China Insurance Regulatory Bureau, but no new orders are expected.
Taiga Moon issued a letter to taxi owners stating that it would cancel the policy contract within 7 days, which is estimated to be 8,000.
When asked when the Insurance Regulatory Bureau learned that Taiga had made this decision and whether it had prepared in advance, Zhang responded: "Do you think you can scare me? I don't know, I think we should know." He said, the Insurance Regulatory Bureau. The first time I learned about it was last Friday, but there was no comprehensive information. I started to learn more about it on Tuesday, but I always knew the pulse of the market, and I was prepared at every level. Prepared well", but I have done something that can be done in three days.
Lin Ruijiang, executive director (general business) of the China Insurance Regulatory Commission, said that a central coordination mechanism has been introduced for the taxi industry, and 7894 taxis have been diverted through this mechanism this morning.
(Photo by Yu Junliang)
Lin Ruijiang, executive director (general business) of the China Insurance Regulatory Commission, said that a central coordination mechanism has been introduced for the taxi industry. If there is no underwriting, it can be distributed to four insurance companies. However, the insurance premium is set by the insurance company and the taxi owner. 7,894 taxis are diverted through this mechanism.
Taxi insurance has been suspended since yesterday. Lin said that there is also a 30-day insurance plan to assist relevant car owners to continue to have insurance to serve the public.
Regarding insurance pricing, Zhang Hongzheng said that four insurance companies have provided average fee schedules, and insurance companies are not free to set prices.
The Taxi Dealers Association and the Hong Kong Taxi and Minibus Merchants Association welcome the Insurance Regulatory Authority to take over the Taiga Insurance, and urge that the insurance policies of more than 10,000 taxis affected as soon as possible should be properly handled, so as to relieve the concerns of taxi owners and frontline drivers.
According to the taxi industry, some taxis need to be temporarily suspended due to lack of insurance and cannot continue to serve the public. They deeply regret it.
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