UnionPay International responded to rumors: not stopped overseas insurance UnionPay card payment service

On the evening of October 28, it was reported that UnionPay will temporarily suspend the consumption channel of Hong Kong insurance business from October 29.

UnionPay International responded to media sources that it did not stop the UnionPay card payment service for overseas insurance merchants, and stressed that it is not required to purchase life insurance with capital project investment nature in accordance with regulatory requirements.

UnionPay International said that in accordance with regulatory requirements, UnionPay cards issued in China can only be used for personal travel and consumer payments, and cannot be used for capital and financial project transactions. Therefore, UnionPay cards can only be used for frequent travel expenses related to accidents, diseases, etc. Project insurance, can not buy life insurance with the nature of investment in capital projects.

UnionPay International also reminded that insurance has always belonged to the category of overseas restricted merchants. With the purchase of relevant insurance products by domestic bank cards, there is a single limit of US$ 5,000, which can meet the reasonable demand of domestic cardholders to purchase small insurance. Restrictions on investment insurance involving capital projects.

Affected by the rumors that UnionPay closed the consumer channel of Hong Kong's insurance business, the service hours of the sales team of the Hong Kong Prudential Insurance Company's headquarters in Tsim Sha Tsui were extended to 11:59 today. A Hong Kong insurance agent told reporters that the UnionPay initiative has considerable restrictions on the purchase of premium insurance premiums and renewal premiums for large-value insurance customers, but there are still other payment options to purchase Hong Kong insurance, for example, VISA, cheque, cash. , wire transfer and other methods.

In February of this year, the State Administration of Foreign Exchange imposed a single limit of 5,000 US dollars on overseas insurance merchants, but there is no limit on the number of credit cards. It is not uncommon in Hong Kong to exchange large-value policies for credit card swiping. In June this year, the China Insurance Regulatory Commission issued five risk warnings about mainland residents going to Hong Kong to purchase insurance, highlighting the fact that Hong Kong policies are not protected by mainland laws.

On the evening of October 28, the foreign exchange administration also issued a statement saying that it did not adopt new control measures such as exchange and cross-border payment, but required banks to comply with current foreign exchange regulations, effectively fulfill the self-discipline requirements of the exhibition industry, and strengthen the authenticity of compliance. Review. Compared with before, the foreign exchange management policy has been consistent and has not changed. At present, all types of purchase and payment of foreign exchange and settlement of foreign exchange transactions are carried out normally.

Wang Yungui, Director of the Comprehensive Department of the State Administration of Foreign Exchange, publicly stated during the year: "If it is to buy life insurance or return dividend insurance, it is a transaction under the financial and capital terms. For this insurance product, the current foreign exchange management policy. And the regulations are not explicitly allowed. At present, the capital account convertibility is in the process of orderly advancement, and there is a large amount of risk in operating such uninsured overseas insurance products."

The above multiple policy risks and exchange rate risk reminders involving multiple departments have not had a substantial impact on the purchase of Hong Kong insurance by mainland residents. The amount of insurance purchased by mainland residents in Hong Kong has reached record highs. However, the relevant adjustments of the UnionPay to close large-value insurance to the sea, The "actual" obstacles for mainland customers to purchase insurance in Hong Kong have also confusing the prosperous Hong Kong insurance market.

According to the latest statistics released by the Office of the Commissioner of Insurance of Hong Kong on August 31, the amount of new policy premiums for mainland residents to purchase insurance in Hong Kong in the first half of this year was HK$30.1 billion, accounting for 36.9% of the total new policy for personal business in the first half of the year, and close to last year. The sum of the year (HK$31.6 billion), and in 2010, mainland residents insured for HK$4.4 billion, accounting for only 7.5% of Hong Kong's total premium. In the past five years or more, the proportion of mainland insurance policies has surged fivefold.

The main reasons why Hong Kong insurance attracts Chinese mainland residents to “sweep” purchases in Hong Kong include that Hong Kong insurance can provide US dollar-denominated insurance policies, bypass the regulation of foreign exchange quotas, realize global resource allocation, and reduce exchange rate fluctuations. The impairment of assets is very attractive to high-net-worth individuals. In addition, Hong Kong policies have wider coverage and better underwriting fees than mainland insurance policies, and they are also attractive to ordinary residents in the Mainland.

Since October, the depreciation pressure of the renminbi has continued to increase, and the renminbi against the US dollar has been significantly more violent than before, hitting a new low in six years. On October 28, the RMB against the US dollar was 6.776, which fell below the 6.75 mark and continued to refresh the six-year low. The continued depreciation of the RMB undoubtedly accelerated the outflow of the RMB through the insurance channel in Hong Kong.

The following is the announcement of UnionPay International on this matter.

Announcement on Regulating the Acceptance of Overseas UnionPay Cards by Overseas Insurance Merchants

Recently, we have found through the merchant transaction monitoring that some overseas insurance merchants have a large number of single-card single-merger transactions. In order to further standardize overseas insurance merchants to accept domestic UnionPay cards, we recently issued the "Guidelines for the Acceptance of Domestic UnionPay Cards by Overseas Insurance Merchants" (hereinafter referred to as "Guidelines"), reaffirming relevant regulatory requirements and business rules, and ensuring domestic UnionPay Cards are used outside the country for compliance.

The "Guidelines" are currently being piloted in Hong Kong and are applicable to overseas insurance merchants accepting domestic UnionPay cards in all channels such as POS terminals, Internet and mobile payment. The main contents include: First, domestic residents purchase overseas project-related insurance related to accidents, diseases and other tourism expenses, which can be paid by UnionPay card; other insurance items are strictly prohibited to use UnionPay card payment. The second is to strictly implement the foreign exchange policy provisions of overseas insurance merchants single transaction does not exceed 5,000 US dollars or other equivalent foreign currency consumption limit. The third is to strengthen the management requirements of overseas merchants for insurance merchants, including: accurately setting merchant category codes, strengthening merchant training and abnormal transaction monitoring, and strengthening merchant inspections.

We will continue to provide UnionPay card payment services for overseas insurance merchants within the framework of regulatory policies.

UnionPay International Limited

2016.10.29