The leverage of the insurance trust ＂three generations under one roof＂ has not changed, and the service has been iterated.
China Net Finance October 8 (Reporter Lu Kai) After continuous development in recent years, the insurance trust has quietly completed its own iterative development, which provides better corporate financial services by combining the natural leverage advantage of insurance.
Leverage to incite great wealth
Insurance trust is similar to family trust and belongs to the original trust business. Compared with non-standard financing trust business such as real estate trust and political trust, insurance trust has become an important direction of trust business transformation. At the same time, compared with the entry threshold of family trust, the insurance trust takes the insurance amount of the policy as the establishment threshold, and adopts the "down payment+installment" model, which greatly reduces the starting threshold of family trust, not only ensures that the scale of trust assets meets the regulatory requirements, but also reduces the pressure on start-up funds. At the same time, it is attracting more and more attention from high net worth individuals and middle-class families through "leverage".
Since the first single insurance trust of CITIC Trust in 2014, the net profit of insurance trust has gradually increased from 0 to 1, and then from 1 to N. The number of clients who set up insurance trust has increased from 10 in 2014, nearly 100 in 2015, 500 in 2016 and over 1,000 in 2017, reaching nearly 10,000 by the end of June 2021. During this period, the scale of insurance trust has also risen.
Statistics show that in 2017, six trust companies carried out insurance trust business, with a scale of 352 million yuan and a business number of 1023. Today, the scale of insurance trust has advanced by leaps and bounds. In June this year, the new insurance trust was 6.237 billion yuan, up 38.29% from the previous month. However, the new scale of insurance trust is still less than the new scale of family trust of 11.995 billion yuan in the same period.
By comparing the main characteristics of insurance trust and family trust, it is not difficult to find that although both of them belong to service trust, even from the perspective of industry practice, there is a widespread problem of confusing family trust business with insurance trust business, and some people even think that insurance trust belongs to family trust, but there are still great differences between them.
We analyze the main differences between them layer by layer, and it is not difficult to find that there are great differences between insurance trust and family trust in many aspects, such as trust property, threshold for establishment, requirements for the establishment of trust parties, and characteristics of trust property management and application. First of all, the trust property of insurance trust is the right to claim insurance, while the trust property of family trust is rich in forms. At present, the mainstream financial assets in the market are monetary funds, asset management products, insurance policies and corresponding rights.
In terms of the threshold of trust establishment, the supervision has clear scale requirements for the establishment of family trust, and the amount or value of family trust property is not less than 10 million yuan. However, there is no special regulation on the scale of insurance trust, but it still needs to meet the requirements of trust property scale of general trust. At present, in the practice of the industry, the threshold of establishing trust scale for insurance trust is usually higher than RMB 1 million to meet the needs of future wealth management and inheritance.
At the same time, the supervision has clear requirements for the parties to the family trust, but it is mainly bound by the Trust Law and other relevant legal provisions; However, in addition to meeting the trust-related legal and regulatory requirements, the establishment of relevant parties in insurance trust also needs to be restricted by insurance law and insurance contract.
Finally, in terms of the management and application of trust property, although the characteristics of family trust put forward higher requirements for the corresponding management and application, its management, application and disposal of trust property began with the establishment of the trust and the confirmation procedures for transferring the corresponding assets to the trust were not much different from those of traditional trust. However, the insurance trust has different requirements from other trust products in terms of information disclosure, process requirements for claims funds to enter the trust account and trust property management requirements after claims funds arrive, which also provides the possibility of cross-integration with other trust businesses, especially family trusts.
For the insurance trust with a trust scale of more than 10 million yuan, it can be set as a family trust, or the insurance policy and other property can be put into the family trust together. For the trust property with a trust scale of less than 10 million yuan, it can leverage the insurance to incite greater benefits, and it is in the process of mutual cross-integration that the insurance trust is continuously and iteratively developed.
"Three generations under one roof" service upgrade
From the analysis of the current practice, there are three existing insurance trust business models: 1.0, 2.0 and 3.0. In practice, both 2.0 and 3.0 models can be regarded as upgrading iterations on the basis of 1.0 model, and there is no clear updating relationship among them. Instead, they jointly promote the growing insurance trust market under different application conditions.
In the earliest 1.0 business model, the principal insured himself and entrusted the policy beneficiary right or insurance premium of life insurance or annuity insurance he held as trust property to a trust company to set up a trust. With the consent of the insured, the trust company was changed into the policy beneficiary, and when the payment conditions agreed in the policy were met, the insurance company paid the insurance premium to the trust company. As the trustee, the trust company manages and uses the trust property according to the agreement in the trust contract, and gradually delivers the trust property and income to the trust beneficiary designated by the trustor. Under this model, the insurance leverage can also lower the threshold for the establishment of family trust, but the trust company as a whole is in the stage of inferior participation.
In view of the above situation, compared with the 1.0 operation mode and the insurance trust 2.0 mode, the participation stage of the trust company is greatly advanced. After the insurance products and trust products are established, with the consent of the insured, both the applicant and the beneficiary of the policy are changed into trust companies. During the duration of the policy, the trust company will continue to pay the premiums on its behalf by using the trust property, and as the insurance beneficiary, it will be entrusted with the management and distribution of insurance benefits. Since the subsequent policyholder is changed to a trust company, the risks such as the policy being divided as an inheritance or being forced to surrender as the property of the policyholder after the death of the policyholder are avoided. In this way, on the basis of making full use of the leverage advantage of insurance money, the trust has the natural advantage of risk isolation legal framework.
In the insurance trust 3.0 model stage, the trustor sets up a trust with its own funds and entrusts the trust company to buy insurance. As the trustee, the trust company pays the premium with the trust property and signs an insurance contract with the insurance company. This is not so much an insurance trust, but actually it is more like a customized service based on the family trust.
The 3.0 model can provide all-round custody services for customers’ policies from three dimensions: insurance stage, policy holding and claim settlement. It can also expand the types of insurance from traditional life insurance to multiple insurance categories, make insurance an integral part of trust property asset allocation, and further play the role of insurance trust in realizing wealth management. As a result, many insurance trust models have been derived, such as "family insurance policy" model, "insurance trust+will" model, "insurance trust+pension" model and "insurance trust+charity" model. With the continuous iteration of insurance trust, its service quality is constantly upgrading, and investors’ awareness of it is also constantly improving.
The future is promising
In addition to the "gradual" development of the insurance market mentioned above, relevant information shows that the insurance trust market has entered a rapid growth period in the past year or two, and more and more high-net-worth users, especially female users, are increasingly favoring insurance trusts. From the perspective of the proportion of premiums, women account for about 53% and men account for about 47%; From the number of policies, women account for 44% and men account for 56%; From the perspective of the age distribution of premiums, most of them are people aged 41 to 50, accounting for 43%.
At the same time, the insurance market is still facing stage challenges. Compared with customers’ recognition and acceptance of family trust, it needs to be strengthened, and the market needs to be further cultivated and developed, which puts forward higher requirements for improving the professional ability of employees and improving the basic system of insurance trust.
However, we should also see that under the background of tightening supervision and industry transformation, insurance trust business is one of the important businesses for trust companies to cope with industry transformation. Although there are still some shortcomings in this field, such as unclear laws and regulatory policies, and lack of effective profit model, compared with the previous business processing time of several months, the financial technology widely used in the industry has effectively helped the development of insurance trust business, and the insurance trust has been greatly improved in modularization, standardization and informationization. In particular, the professional ability of employees is gradually improving in marketing mode, service mode and management mode. In the future, with the progress of society and the changes in China’s wealth market, the real market demand will be further released.
Some experts in the industry once said: For high-net-worth customers, insurance trust can enrich the forms of insurance payment and effectively solve the problem of insurance distribution and inheritance in the future. At present, domestic private banks, insurance companies, trust companies and other institutions have begun to extend the service chain through insurance trust, which will be welcomed by more and more high-net-worth people in the future. China Net Finance will continue to pay attention to the future development of insurance trust.
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