Chinese insurance business violation 1.505 billion financial revenue and expenditure violation 440 million

China People's Insurance Group Co., Ltd. 2009 annual balance of profit and loss audit results (January 31, 2011 notice) According to the audit law of the People's Republic of China, the Audit Commission in May 2010 to July, the Chinese People's Insurance Group Co., Ltd. (hereinafter referred to as PICC)　　and its 6 subsidiaries and 18 branches of the 2009 annual balance of assets and losses of the audit. First, the basic situation of China Bao is a wholly state-owned comprehensive insurance (financial) group, under the 10 holding subsidiaries.　　According to China's PICC financial statements, as at the end of 2009, the total assets of the Chinese insured 304.909 billion yuan, total liabilities of 271.384 billion yuan, the owner's equity of 33.525 billion yuan, the current operating income of 153.625 billion yuan, the total profit of 2.086 billion yuan.　　The audit results show that in recent years, the Chinese people have conscientiously implemented the National macro-control policy, actively promote reform and innovation, the company's overall strength and comprehensive competitiveness has been steadily improved. One is to actively promote the overall reform of the group, and constantly improve the corporate governance structure.　　While the Chinese people are dealing with the problems left over by the reform and reorganization, taking group construction as the main line, strengthening the control of subsidiaries, promoting the construction of comprehensive risk management system, strengthening budget, investment and capital plan management, supervision and operation coordination, and initially forming the governance structure of decentralization, balance and operation. Second, we should strive to build a diversified financial development pattern to promote the rapid growth of business income and asset scale.　　Since 2007, the Chinese people have realized the strategic change from the single property insurance business to the diversified development of property insurance, life insurance, health insurance, asset management and financial business, and the premium income increases by 35% annually and the asset scale increases by 40% annually. The third is to widen insurance coverage and service field, and to open up the insurance market in the new countryside construction and service harmonious society.　　Chinese people from the allocation of resources, product development, expand service outlets and so on to increase investment, and actively develop the "three rural" insurance business, to cover the South-to-north water diversion and other major projects, participate in urban and rural medical security system construction, to carry out major natural disaster claims work, the service sector has been widened.　　Second, the audit found the main problems and rectification of the situation (i) the management of irregularities in the problem 1.505 billion yuan. 1. Illegal underwriting of 412 million yuan. Mainly is the violation of the agreement to cover or relax underwriting conditions underwriting, false insurance of agricultural insurance, discount sales and other issues, including Heilongjiang, Hunan and other branches of 17 provinces and cities.　　such as Hunan Qiyang County related departments and local companies 2009 together to fabricate false agricultural insurance business, to obtain higher financial subsidy 9.02 million yuan.　　In view of the above problems, the Chinese insurance has taken to see the bill and open agricultural insurance information and other corrective measures, and 31 of the relevant persons responsible for the accountability process. 2. False refund or cancellation policy 260 million yuan, involving Tianjin, Jilin, Shanghai, Hunan, Guangdong, Zhejiang, Yunnan and other 7 provinces and cities branches. such as Tianjin Branch2009, the business system in some of the invalid insurance policy to be treated as a write-off for various reasons over the years to form a receivable premium of 233 million yuan.　　In view of the above problems, the Chinese insurance has adopted the standard smoothen process, the right to collect and other corrective measures, and the 7 related to the responsibility of the accountability process. 3. The violation claims 146 million yuan. Among them, a false claim of 86 million yuan, expand the scope of coverage claims 3.56 million yuan and false claims 56.12 million yuan, etc., mainly for the additional payment of customer insurance indemnity, agency fees, etc., involving Liaoning, Shandong and other 12 provinces and Cities branch offices.　　such as Liaoning Tieling Branch and its 6 companies in 2009 fraud claim funds 6.7952 million yuan for the payment of high fees and so on.　　In view of the above problems, the Chinese insurance has taken the centralized control of claims and other corrective measures, and 45 of the relevant persons responsible for the accountability process. 4. Illegal payment of insurance agent fees 684 million yuan. Mainly through the false agent business to obtain fees, to the unqualified units or individuals to pay the handling fees, the use of fees to reverse the false linked premiums, payment of high fees and other issues, involving Guangdong, Shanghai and other 13 provinces and cities branch offices.　　For example, 3 companies in Guangzhou in 2009, the direct selling business virtual hanging in the name of the insurance intermediary, a total of 12.6648 million yuan fee.　　In view of the above problems, the Chinese insurance has carried out the sales channels, standardize the intermediary cooperation and other special inspection, and 25 of the relevant persons responsible for the accountability process. 5. The operation of the insurance business is 3.12 million yuan, involving Shandong, Liaoning Province, 2 branch offices.　　such as Shandong Weihai Branch 2009 years of misappropriation of 2.6066 million yuan, used to repay the debts of the formation of foreign loans.　　In view of the above problems, Chinese insurance has taken measures to strengthen the custody of documents and clean up the inventory, and the 42 related responsible persons have been treated with accountability. (b) The financial revenue and expenditure violations of the amount of 440 million yuan. The main is to take a single, span and other ways to adjust the premium income, the cost of multiple expenditures and kangaroo "coffers" and other issues, involving Beijing, Tianjin, Liaoning, Jilin, Shanghai, Shandong, Hubei, Hunan, Guangdong, Shenzhen, Yunnan, Shaanxi, Gansu and other 13 provinces and cities branch offices.　　Some branches of Yunnan province, such as the use of false invoices in 2009, "office supplies", such as the name of reimbursement of 16.1904 million yuan, mainly for invitation gifts and distribution benefits.　　In response to the above problems, the Chinese insurance branch has adjusted the paying table, the recovery of funds 62.92 million yuan, the tax 79.89 million yuan (has been paid 2.4543 million yuan), and 24 related to the responsibility of the accountability process. In addition, there are some weak links in the operation and management of the Chinese subsidiaries and some branches, for example, the historical receivable premiums have fully taken account of the bad debts, but the long-term ledger affect the authenticity of the financial statements; , there are defects in information system construction, prevention and control of illegal questionsThe ability of the problem needs to be improved. In view of the above problems, the Chinese people's insurance through the implementation of the "Information technology, vertical management, the construction of Financial Sharing Service center, improve the internal control compliance system" and other key projects, further plugging the financial and information systems and other management loopholes, to ensure effective rectification; At the same time, issued a "financial　　and penalties for the implementation of more than 20 rules and regulations and policies, and further improve the company's internal management system. Third, the audit processing situation and recommendations on the above issues, the Audit Office issued an auditing report. The illegal operation insurance business that the audit discovers, the problems such as the weakness of management and management have been transferred to the CIRC for treatment, the problems of violating the financial revenue and expenditure regulations are dealt with according to law, and the relevant institutions in China shall be obligated to adjust the relevant accounting accounts according to law and to pay the tax. Clues to 12 suspected offences and serious disciplinary problems , has been transferred to the judiciary and discipline Inspection and inspection departments for investigation.　　At the same time, the Audit Commission also advised the Chinese people to further optimize the business development model, strengthen the insurance business management, strengthen the branch of underwriting, retirement, claims and other business aspects of the examination and approval, management and monitoring, strengthen the basic work of financial management, improve the level of insurance services. The Audit Commission will continue to follow up and make timely announcements on matters that the Chinese have not completed rectification.