February 3, 2021

CISFC Holds 2021 Work Conference

China Insurance Security Fund Co., Ltd. (CISFC) held its annual work conference on February 2, 2021, in both offline and online formats. Under the overall guidance of the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Conference aims to fully implement the guiding principles of the 19th CPC National Congress; the Second, Third, Fourth, and Fifth Plenary Sessions of the 19th CPC Central Committee; and the Central Economic Work Conference, as well as carry out the directives of the Annual Work Conference of the China Banking and Insurance Regulatory Commission (CBIRC) and of the CBIRC Conference on Full and Strict Party Self-Governance, Party Conduct, and Clean Governance. In addition, the Conference reviewed CISFC’s accomplishments in 2020 and during the 13th Five-Year Plan (FYP) period (20162020) as a whole, analyzed the new trends and tasks facing the company, and made plans for CISFC’s core initiatives and major Party self-governance programs in 2021. Yu Hua, Secretary of the CPC CISFC Committee and Chairwoman of the Board, spoke at the meeting. Yi Cheng, CPC CISFC Committee Member and Vice Chairman of the Board, presided over the meeting. The meeting was attended by CISFC’s leadership team, all staff members, and invited officials from the Management Committee and Finance and Accounting Department of CBIRC.

The Conference noted that 2020 was not only an extraordinary year in the history of the People’s Republic of China, but also a year of unprecedented opportunities and challenges for CISFC. Under the central leadership of the CPC CBIRC Committee, CISFC has firmly implemented the decisions and plans of the CPC Central Committee, the State Council, and CPC CBIRC Committee, and duly performed all its functions. As of December 31, 2020, the Fund had a balance of RMB 164.344 billion, composed of RMB 102.312 billion of property insurance fund and RMB 62.032 billion of life insurance fund, accounting for 62.25% and 37.75% of the total, respectively. Annual investment income was RMB 3.517 billion, giving a return on investment of 4.05%.

In 2020, CISFC has seen ever-improving functionalities of the insurance security fund system, steadily modernizing corporate governance system and capacity, and successful completion of the various programs for the 13th FYP period. Specifically, CISFC: (1) shouldered its political responsibilities by contributing to the successful national campaign against COVID-19; (2) duly fulfilled its social responsibilities as a state-owned enterprise in the successful targeted poverty alleviation program; (3) completed its political task of risk resolution and helped the country prevent and defuse major financial risks; (4) actively integrated its functions with regulators’ risk monitoring system to help improve the monitoring results; (5) improved the institutional framework for the insurance security fund system for more sustainable corporate development; (6) collected contributions to the Fund in strict accordance with the law and managed Fund assets in a prudent manner; (7) enhanced self-improvement efforts for more rule-based and efficient operations; (8) prioritized political strengthening in all its activities and steadily promoted the high-quality development of its party-building programs; and (9) strengthened Party conduct and governance integrity programs to create an upright political environment.

The Conference summarized CISFC’s four main achievements during the 13th FYP period, namely: (1) CISFC has further strengthened the foundations of party building, with an appreciable improvement in the capacity for full and strict Party self-governance; (2) it steadily modernized the corporate governance framework and capacity; (3) it strictly performed its statutory duties and optimized and strengthened its core businesses; and (4) it has improved the insurance security fund system and resolved many institutional problems.

The Conference stressed that 2021 stands at the historic juncture of the Two Centenary Goals. It is also the first year for the national 14th Five-Year Plan and a vital year for advancing the reform of the insurance industry and modernizing the financial supervision and regulatory system. Consequently, CISFC is to follow the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the guiding principles of the 19th CPC National Congress; the Second, Third, Fourth, and Fifth Plenary Sessions of the 19th CPC Central Committee; and the Central Economic Work Conference, as well as carry out the directives of the CBIRC Annual Work Conference and of the CBIRC Conference on Full and Strict Party Self-Governance, Party Conduct, and Clean Governance. The CISFC will uphold the central leadership of the Party over Fund programs; follow the general guideline of making steady progress; and adapt to the new development stage, embrace the new development philosophies, and support the new development paradigm. The company will promote high-quality development and ensure full and strict Party self-governance can provide both guidance and assurance to Fund activities. It will vigorously carry out its political task of risk resolution, fulfill the statutory duties of the Fund, promote the modernization of its corporate governance system and capacity, and continue to resolve any remaining institutional challenges. Lastly, the CISFC will be fully committed to safeguarding the sound development of the insurance industry and the interest of policyholders and to taking a solid first step toward the sustainable development of the Fund and the company during the 14th FYP period.

The Conference charged the CISFC with the following priorities in 2021: (1) continuously optimizing the top-level design of the insurance security fund system and developing a sound corporate development plan for the 14th FYP period; (2) fulfilling the political responsibility of risk resolution at high standards to help build a heathier and more sustainable insurance industry; (3) steadily advancing the fundraising programs and continuously improving the management of Fund deposits; (4) managing Fund assets in a rational and prudent manner to keep them secure and maintain and grow their value; (5) modernizing and strengthening its risk monitoring system for more accurate identification of industry risks; (6) enhancing internal management and ensuring the orderly operation of its core businesses; and (7) building innovative IT infrastructures to become a more technology-empowered company.

The Conference called for all Party and non-Party staff members of CISFC to rally more closely around the CPC Central Committee with Xi Jinping at the core and follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. It asked them to strengthen the Four Consciousnesses and Four Confidences and ensure Two Upholds, to duly execute the decisions and plans of the CPC Central Committee and the State Council, and to steadily carry out the various programs of the Fund in accordance with the guiding principles of the CBIRC 2021 Work Conference, in order to welcome the 100th anniversary of the Party with outstanding achievements.