Posts Tagged ‘china insurance’

China Insurance Market and Technology Technology Survey

October 20th, 2009 youhan

China Insurance Market and Technology Technology Survey

Have you ever wondered what exactly is up with China Insurance Market ? This informative report can give you an insight into everything you’ve ever wanted to know about China Insurance Market .

 Those of you not familiar with the latest on China Insurance Market  now have at least a basic understanding. But there’s more to come.

The charge for allowance in China is accretion due to accelerated bread-and-butter advance and added income. Reform of the alimony and medical allowance systems has provided a ample abject for the development of bartering insurance.

Insurance companies in China accept added accustomed the accent of advice technology in convalescent the competitiveness of enterprises and accept after invested a greater bulk of assets in IT spending. It is accepted that from 2008 to 2010, China’s allowance bazaar will acquaintance abiding and accelerated development, with a accelerated anniversary advance amount of about 20 percent. A fresh report, China insurance Bazaar and Technology Overview 2008, examines the Chinese insurance market’s all-embracing development trends and operations, as able-bodied as allegory insurancecompanies’ advice technology investments.

Concentration aural China’s activity insurance bazaar is high. China life insurance Company has added than 40% of the market, and the top bristles life insurance companies absorb 84% of the market. life insurance companies accept amorphous to gradually acclimatize their business structures to advance the admeasurement of limited-payment premiums accessible (as against to distinct premiums).

China’s acreage insurance  bazaar absorption is additionally actual high, with PICC application 40% of the market. The top bristles allowance companies absorb 76% of the absolute acreage market. Foreign advance / collective adventure activity allowance companies accept a abate share, accounting for 8% of the life insurance bazaar and alone 1% of the acreage insurance market.

Now might be a good time to write down the main points covered above. The act of putting it down on paper will help you remember what’s important about China Insurance Market .

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China’s Health insurance Industry Trends

October 16th, 2009 youhan

       一、 China’s health insurance industry in the pioneering era
        1, health insurance competition in the market to develop. China’s current health insurance market, the supply of the main addition to China Life, Ping An Insurance, China Pacific Life Insurance, Xinhua Life Insurance, Taikang Life, Taiping Life and other Chinese-funded life insurance companies, has added a new two business entities, one new “Insurance Law” stipulates that from January 1, 2003 start, insurance companies can operate short-term health insurance business. Including the People’s Insurance Company and Huatai companies, including insurance companies early in the new “Insurance Law” introduced a few months before, they started to increase health insurance product development and professional talent pool efforts in preparation for the short term health insurance in this new market accounted for was a place. As the past five or six years, the insurance companies in premiums relative to life insurance companies, the growth has slowed down (in 2002 the national property and casualty insurance premiums accounted for about a quarter of total), whether for competition in the market the need for or the firm’s capabilities requirements, insurance companies will vigorously explore both short-term health insurance, including a new business. Second, with China’s accession to WTO, the protection insurance market, shortened, and more has an international background in life insurance joint venture will be fully penetrate China’s insurance market, health insurance is bound to exacerbate the intensity of competition in the market. Are already doing business with its joint venture life insurance company health insurance than the rich management experience and technology, a breakthrough in the traditional sense of the mindset of medical insurance, according to market demand to provide health insurance products. As in September 2002, Sun Life Everbright Life Insurance Company (Sino-Canadian joint venture) launched the “ill worry-free” insurance, the kinds of major diseases to protect patients from 25 kinds of expanded to 33 species, becoming the highest protection of diseases a disease re-insurance . There are companies who will be spidered, another important category of health insurance – disability income insurance, launched a content-rich portfolio of health insurance products. Such as the CMG Corporation (Sino-Australian joint venture) in January 2003 devaluation in China, “regular life insurance income protection” products to meet the listing over the same period “Additional long-term disability income protection insurance,” constitutes a “Golden Collar worry-free insurance Plan “and so on. 
     2. Chinese-funded health insurance, life insurance companies to actively explore the development. China Life Insurance Company in 2001, issued to the whole system of “promotion of health insurance on the development of guidance,” and proposed a “positive development, professional management, the overall promotion and Cost-effective,” the four guiding principles, and actively develop commercial health insurance business, and strive to improve the professional management level; China Pacific Life Insurance Company launched in the rural areas, “Jiangyin Mode” and launched in cities and towns “Xiamen mode”, all in the community caused a greater response; Xinhua Life Insurance Company in 2003, the beginning of the company’s annual work conference held in clear that this year will be to build an independent health care insurance companies; Taikang Life Insurance Company’s health insurance product development, risk control, market-driven in various segments of the overall management of sales staff qualified to carry out special assessment; China Ping An Life Insurance Company attaches great importance to development of health insurance products, in January 2003 has introduced four new emphasis on disease health insurance products, and have become re-disease health insurance products of domestic varieties of the more complete insurance companies. It can be said, individual life insurance companies are fully anticipate the development potential of health insurance, and strive to be more intense in the coming competition in the market to seize opportunities.
     3. Supplementary medical insurance for employees starting point for business, health business-funded life insurance companies to maintain rapid growth. Since 2001, Chinese-funded life insurance companies to use national medical reform have given a good opportunity to seize in a relatively short period of time after the workers throughout the health reform supplementary medical insurance market. In their supplementary medical insurance-related driven by strong insurance, individual life insurance companies health insurance premiums in 2000 averaged 98.94 percent year on year growth rates, life insurance premiums than the national growth rate of 39.19 percentage points higher than the same time, health insurance premiums in life insurance business, the proportion was gradually rising trend. 
      

      二、China’s commercial health insurance trends
    （一） commercial health insurance industry is facing a good opportunity for development
In recent years, as soon as possible to establish a market economy needs to adapt to new social security system, has become a broad consensus. As an important component of the social security system, commercial health insurance, and its importance more obvious each day, can be said that China’s current health insurance is facing great opportunities for development, whether from the external policy environment, or from the internal operating environment, to develop commercial health insurance, unite in the basic conditions.
     1. The external environment is very conducive to the development of health insurance. First, a comprehensive medical insurance system reform in depth for commercial insurance companies in the country to carry out commercial health insurance, urban and rural areas has provided a broad space for development. In 2000, the State Council’s “on improving the social security system for urban workers, the pilot program of work notice” has made it clear the establishment of the basic medical insurance system for urban workers, the basic principles put forward the national health security system, the basic idea of this supplementary medical insurance for urban workers leaving a huge market space. In October 2002, the National Rural Health Conference should be made to co-ordinate the establishment of major diseases mainly of new rural cooperative medical system with individual farmers make payments, the collective support and government-funded combination of funding mechanisms to support farmers in various forms of access to basic health care protection, to encourage farmers to participate in the commercial health insurance. According to preliminary estimates, urban basic medical supplementary medical insurance premium, and farmers the potential of up to 100 billion yuan, health insurance will no doubt become the life insurance companies to maintain business as an important support for high-speed growth. Second, China Insurance Regulatory Commission attaches great importance to the development of the health insurance industry. In December 2002, China Insurance Regulatory Commission issued a special “Regulations on accelerating the development of guidance for health insurance” (hereinafter referred to as “guidance”), accelerating the development of health insurance, the enhancement of health insurance, professional operation and management, establish to adapt to national conditions and health insurance, the principle of the development model, etc. requirements. China Insurance Regulatory Commission has held numerous forums, seminars implementation of the development of health insurance policies. Third, China’s health care environment is constantly improving. Since 2002, the State Department stepped up medical insurance, health care and the pharmaceutical distribution system “from three years to simultaneously proceed with the”, so that drug prices and medical service costs has been initially brought under control. According to statistics, national health care reform before the General Hospital Health System 1990-1998, the average per annual growth rate of outpatient and inpatient costs were 25% and 23%, respectively, after the reform in 2001 reduced to 9% and 5%. Not long ago, the State Council has twice emphasized that “China’s social security health insurance is an important component of the system,” to speed up the commercial health insurance pilot work for the commercial health insurance, pointed out the direction of development. Ministry of Health, Ministry of Finance and the China Insurance Regulatory Commission and other relevant administrative departments, is actively study and formulate policies to support commercial insurance companies and health care service providers to carry out in-depth cooperation in the effective control of the business operating costs. Fourth, the increasing demand for health insurance market expansion, particularly in urban group supplementary medical insurance and basic medical insurance for the farmers market demand for large, the majority of urban and affluent rural areas, the public becomes more aware of the strong insurance, health insurance, consumer psychology has become a virtuous and so on.

        2. The development of health insurance, the internal business environment is moving in the direction of the evolution of sound. First, health insurance, part of the business risks can be a degree of control. As long as they filed past, health insurance, the insurance industry is generally believed that their business risks are relatively large, the loss ratio is too high. In fact, the current life insurance companies pushing products are the main supplementary medical insurance workers, and the past, particularly in relation to traditional health insurance, “designed to promote the main risks of additional health insurance,” is entirely different. Because of its link with the social security sector to carry out supplementary health care services, business risk is relatively easy to control. The basic medical insurance as government actions, mandatory, and to better regulate the hospital’s medical care. Life insurance companies can through the information system interface, the joint office with the form of convergence, either indirectly insured medical expenses and true information, but also can simplify the claims process and reduce operational risks. From a business management perspective, the social security sector is the first line risk control “firewall”, in other words, social health insurance valid for the commercial medical insurance, the incidence of spread of the most concentrated part of the crowd and the risk of common diseases, life insurance companies can take full advantage of the social security departments of medical institutions to manage results. In addition, in recent years, Chinese-funded life insurance companies in the business model and risk management tools on a useful exploration in some areas has been made in the health insurance business success stories. Second, the existence of health insurance premium rate increase space. Through recent years, the health insurance business, life insurance companies have accumulated a large number of effective base data, more a large number of front-line operational staff to conduct market research, which is conducive to statistics, suggesting a guiding market rates. In a sense, China’s current health insurance market in its infancy, and the supply lags far behind the demand. In parts of Guangdong Province as an example, additional medical insurance average rate of hospitalization from 30%. Raised to 50 ‰, experienced only a short period of time more than a year, they are quickly digested and accepted by the market. Since the rate increase there is room for the needs of society they exist in large numbers, a significant increase in premium income also the possibility of payment rate will decline due to an increase in premium, life insurance company’s business will be more stable, the majority of the interests of insurance policyholders will be more secure. This will be a positive chain reaction. Despite the current health insurance, life insurance companies operating in one way or another, there are still difficulties, but as long as we continue to adapt to the new development situation, and strive to improve their management level, health insurance, life insurance companies will eventually become an important group of products into parts, for the stability play an important role in people’s lives.

       (二) the health insurance industry will gradually enter the orbit of specialized operation

     Health insurance, professional management, including the meaning of both, one in business development orientation, on the health insurance as one of the main business to be planning; Second, in the direction of institution-building, in accordance with operational requirements to build professional business operation system.

      1. Health insurance business model. China Insurance Regulatory Commission, “guidance” to define the professional development of China’s commercial health insurance, the direction and requirements. In the professional management issues, health insurance is way out is to take the professional management of the road. Life insurance company health insurance business model is to establish a sound management system for the insurance professional. Fully demonstrated at home and abroad business practices, professional management can fundamentally improve the level of health insurance business, effective control of operational risks, is to ensure that health insurance, long-term plan for sustainable development.

     2. Health insurance, the financial evaluation system. Given the special nature of health insurance business, China Insurance Regulatory Commission “guiding opinions” explicit requirements for health insurance with a separate assessment and professional actuarial system. Health insurance-on management, health insurance will provide the basis for a separate evaluation conditions.

       (三) the development of health insurance Thoughts

Health insurance business in the insurance industry has been called a “worldwide problem”, the development of health insurance to the Chinese-funded life insurance company’s innovative capacity and overall strength will be a comprehensive test. In the rare opportunities and severe challenges, the Chinese-funded life insurance companies, no matter how much must be to overcome the difficulties step by step to the completion of a number of pioneering work seriously. Past couple of years necessary to how to speed up the development of health insurance a top priority on the agenda, from a strategic perspective to develop health insurance, business development planning, from the development of practical business tactics to promote the program to comprehensively strengthen the health insurance business leadership.

At present, the first specialized information system construction as soon as possible to resolve the issue. Health insurance information management requirements in view of the high importance of statistical analysis. China Insurance Regulatory Commission “guiding opinions” clear requirements, health insurance, information technology necessary to implement specialization, which reflects the company’s health insurance, the management level and service advantages, promote the rapid development of main insurance business. Second, is to improve the professional management system, system construction. He Pei specialized underwriting business health insurance system is a necessary requirement risk control, nuclear security is the core of business management. China Insurance Regulatory Commission “guiding opinions” expressly requested that the professional management must be the establishment of specialized underwriting Hepei system, and should focus on human, material and financial resources as soon as possible organizations to develop a corresponding set of management system. These include: health insurance management and underwriting claims management operating procedures manual for health insurance services, operating procedures and medical services such as supervision and management methods. The third is to strengthen professional sales management system. According to the operating characteristics of health insurance, professional selling is an important means for marketing, but also an effective risk control measures. In the professional sales force has not been established before the health insurance professional sales department may rely on rules and regulations and management practices, implementation of sales risk control, operations can be with the company’s existing sales channels. At present, group health insurance supplementary medical insurance is the focus of expansion, and enterprises, the cooperation between the Government and the insured amount is mainly a large group alone business, in order to direct the main risk group, while broadening distribution channels can make full use of intermediaries services and insurance brokerage business. Fourth, strengthen international exchanges and cooperation. By absorbing foreign advanced management concepts, improve their management level, to explore with Chinese characteristics and the formation of a new health insurance business model. Such as: to explore with the health sector to provide quality medical services and medical technology support, control health care expenditure patterns of cooperation and so on.

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China Health Insurance And Health Management Integrated Model Of Discussion

October 16th, 2009 youhan
        Since 2004, China’s insurance industry set up the first specialized health insurance companies has been on health insurance and health management to explore how to combine the theory and practice in an increasingly in-depth exploration, but now, from the internal and external evaluation of the industry point of view, The combination of these two hard to satisfactory results. Hope to trigger some discussion of the text in order to be the promotion of the cause of this.
 
Review and Present Situation Health management ideas and practices first appeared in the United States, it refers to the health of individuals or groups to conduct a comprehensive monitoring, analysis, assessment, providing health advice and guidance, as well as risk factors for health of the whole process of intervention, which aims through the efficient resource utilization to achieve the greatest health outcomes. The theory of meaning health management in broad terms the specific forms of realization are therefore much variety, from the physical examination, health assessment, sports and fitness, to lifestyle management, chronic disease management, and even traditional Chinese medicine health and much more . The reason for the health insurance and health management with a combination of reasons, there is a more unified understanding of the industry can be achieved through health management to improve the health status of the insured population, thereby reducing their medical expenses and reduce the rate of health insurance payment.

Abroad, the theory and practice of professional experience in health insurance, when introduced into China, there are many concepts (such as managed care, HMO, etc.) that contains the contents of its broader, which filled our understanding of health insurance and health management has been a combination of modes deviation, and even think that health care network management are also part of health management. In fact, the foreign professional health insurance companies in the medical expenses of the control, is two-pronged approach: the first medical provider network or health care management (eg, treatment services and medication review, specific treatment services, pre-authorization system, medical institutions, performance appraisal, etc.), audit unreasonable expenses, through benefit-sharing mechanisms to manage the health care provider behavior; second is the adoption of the above mentioned health management to improve the health status of insured groups, thereby reducing the medical expenses. The so-called health insurance and health management combination, refers to the latter. Of course, with the cooperation of health care providers, you can introduce a certain incentives to demand its insured to provide health management services (such as vaccination, health counseling, etc.). This is evident from expressions of view, is a medical network management and health management into one, but logically, the right health care network management and introduction of health management services to health insurance companies try to control medical costs of two kinds of means, each with of different expertise. From China’s current situation of health insurance companies and medical institutions (in particular, there is a strength, has been widely trusted by people in large medical institutions) of the game process, still vulnerable position, hard to form a community of interests, health insurance companies hoping to Build your own managed health care network is difficult and still very great. In addition, mainstream medical institutions are still concerns treatment of disease, the short-term fear is also too busy to help the company to provide further health management services. Thus, the domestic health insurance companies are mainly through independent third-party health management companies, to outsource services-based, self-built service, supplemented by way of providing health management services to clients. Services have a health consultation, health check, health assessment, appointment register and lifestyle management. However, on the one hand because the domestic health management services industry is still in its infancy, effective health management services, supply capacity is not enough; the other hand, the health insurance industry is still in its infancy, how to integrate health management services to the insurance risk control process has not yet matured into the model. Therefore, health insurance and health management of the combined form still rudimentary, health management services, primarily for the exhibition industry, the marketing tool of risk control for the role of medical expenses is not yet obvious, and difficult to account for health benefits management services.

Principles Health insurance companies in recent years on how to integrate the field of health management services, has done a lot of exploration and practice, many of whom are successful experiences, but also into the off errors in the development review process, it seems a few basic principles can be summarized, as health insurance companies the choice to carry out health management services guidelines. (A) based on the principle of insurance, the main industry. Health management technology and services to a variety of ways, but as a health insurance company in the selection of external services, integration of resources, or build their own service project, the insurance must be based on the primary industry itself, that is carried out by health management services must contribute to the development insurance business, controlling expenses paid and avoid vague position, in order to make health management and health management to do, so that the health management and health insurance, made of two separate business areas, there is no point of integration has become a "Liangzhang Pi." (B) the costs and benefits of matching principle. The field of professional health insurance companies is limited because of operational and business risk management and control is difficult, and generally in the "survival" of the early days, the financial pressure significantly. In the cost of extremely tense situation, carrying out health management services to more costs and benefits should adhere to the principle of matching. Some health management services appears to be simple, but if large-scale implementation, the actual cost of the necessary human and material resources are not small. In order to build customer health record, for example, due to various hospitals, medical institutions of medical reporting formats vary, it is difficult to achieve a direct exchange of data that, if carried out in all insurance customers this service, only the medical reports and review input links artificial workload is high, but the services can bring benefits (for example, to enhance customer satisfaction, lower paid, etc.) is difficult and cost-match. (C) service differentiation principle. Health Management Services supply and the supply of any product, should be aimed at different target customer base while differentiation. Health insurance companies to provide health management services, have to combine the characteristics of insurance business further subdivided. For example, chronic disease management is to maintain health and control health care expenses in an effective way, but for insurance companies is precisely the population suffering from chronic diseases is a high-risk customers. In underwriting a risk the autonomy of the higher channels, should be part of the underwriting risk to be screened (eg, fees, exemptions or exclusions, etc.), rather than underwriting and then passively through the implementation of chronic disease management to risk control. However, in the field of social security supplementary services, insurance groups can not be selected at this time according to past payment history of chronic disease groups chosen to carry out targeted chronic disease management, you can play a lower paid role.

Model proposed According to these principles, combined with the current health insurance, internal and external environment, or from several fields to promote health insurance and health management model of a combination of practice: (A) the social security supplementary services for customers in specific diseases of chronic disease management services. As noted above, such operations can not be selected underwriting group, so through effective health education, health tips, behavioral interventions, such as a set of chronic disease management services, on the one hand can help to control medical expenses, and to show the professional health insurance companies, risk control capability, on the other, can improve patient satisfaction, and thus promote the social security sector partnerships will be of such business relationships based maintenance mode gradually evolved as a professional health management technology-based maintenance model, further enhance the stability of such operations to achieve the patient’s health was improving, the social security sector must enhance the reputation, business insurance profits may have to raise the win-win situation. In addition, because the cost of carrying out the service and availability of the direct benefits (ie, the amount paid reduced rate) are measurable, so we can clearly calculate the input-output ratio of this service. (B) For a small minority of customers throughout health records management services. The health of the file mentioned here is not simply input the medical report, but around the customer life cycle, through his physical examination, Chuxian claims, health consultation, the health of the whole process of information gathering, and thus the formation of health records, and thus produce targeted Report of health assessment and health recommendations for improvement. Clients can be purchased to ensure renewal of the high medical expenses-type, high pay period of heavy disease type, or a high period of the investment products paid customers. The company may take an annual medical examination services, presented the way, year after year to collect information on the health status of clients, and through health assessment and health promotion programs and other value-added services to increase customer satisfaction, thereby enhancing customer stickiness. In the meantime, the former two types of customers, the company has real-time control over their health status changes in the trend of enhanced ability to control the risk of payment. In addition, countries are promoting the building of universal health records work, ahead of companies such operations carried out for the relevant government departments can also provide good advice and suggestions. (C) for the public health consulting services. Channels such as through the company’s Web site to the public transmitted diseases, medication, health management, and treatment recommendation of such knowledge and information, both play a role in education, consulting, but also can improve the company’s professional brand image. Health management services for more than three, respectively, from the medical cost control, customer experience improvement, upgrading the company’s brand with the three health insurance to do the binding, and without the need to mobilize a lot of medical resources, from the current industry, internal and external environment is concerned, should be more feasible to attempt the direction.

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A Development History Of China’s Insurance

October 14th, 2009 youhan

The afterward paragraphs abridge the assignment of China insurance experts who are absolutely accustomed with all the aspects of China insurance. Heed their admonition to abstain any China insurance surprises.

Is aggregate authoritative faculty so far? If not, I’m abiding that with aloof a little added reading, all the facts will abatement into place.

 The accepted better insurers in the apple including American insurance Group (AIG) of United States, were founded in Shanghai in 1919.

Before 1949, China’s insurance industry was controlled by best adopted companies operating in Shanghai. Most added insurers were ample adopted companies that larboard China absolutely afterwards 1949, admitting some aloof to Hong Kong.

From 1949 to 1976, the insurance industry in China about accomplished to exist. Few Chinese endemic claimed property, and about all businesses enterprises were government-owned and “self-insured.”

years. Absolute assets from premiums is acceptable to top US$20 billion in 2001.

By 2005, the absolute amount of China insurance premiums is accepted to ability $33.82 billion, basic 2.3 percent of the absolute gross calm artefact value. The boilerplate exceptional per being is estimated to ability $27.78.

At present there are 18 absolute branches of alone foreign-owned insurance companies and JV insurance companies in China either already in operation or advancing to barrage operations. There are additionally 201 adopted adumbrative offices in China that accord to 17 countries and 113 regions, abounding of which accept already activated to the China Allowance Regulatory Commission to accessible insurancebusinesses in China.

years. Absolute assets from premiums is acceptable to top US$20 billion in 2001.

By 2005, the absolute amount of China insurance premiums is accepted to ability $33.82 billion, basic 2.3 percent of the absolute gross calm artefact value. The boilerplate exceptional per being is estimated to ability $27.78.

At present there are 18 absolute branches of alone foreign-owned insurance companies and JV insurance companies in China either already in operation or advancing to barrage operations. There are additionally 201 adopted adumbrative offices in China that accord to 17 countries and 113 regions, abounding of which accept already activated to the China insurance Regulatory Commission to accessible insurance businesses in China.

 So now you apperceive a little bit about China insurance. Even if you don’t apperceive everything, you’ve done article worthwhile: you’ve broadcast your knowledge.

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The Gradual Diversification Of China Insurance Market

October 14th, 2009 youhan

China People’s Insurance Company since 1956, Xinfeng, Taiping two insurance companies after the withdrawal from the domestic insurance market, has been the exclusive monopoly of the Chinese insurance market. After the resumption of domestic insurance business, China’s insurance market is still dominating the world by the Chinese People’s Insurance Company. China People’s Insurance Company a complete monopoly on the market, in the circumstances have played a positive role in promoting China’s insurance industry in the short term rapid recovery and development. With the rapid development of the socialist market economy with market economy rules run counter to the monopoly operating system, the inherent shortcomings of gradually exposed. Monopoly system stifled the development of the law of value in the role of insurance and deprive the insured person the right to choose the insurer, resulting in high insurance rates, insurance, marketing power of contraction. Therefore, the change in China People’s Insurance Company dominate the world’s insurance system has become an urgent need to address the problem at that time.

In February 1986, the PBC approved the establishment of “agriculture and animal husbandry in Xinjiang Production and Construction Corps Insurance Company”, specializes in the Xinjiang Production and Construction Corps of planting and breeding farms within two business insurance. In 1992, the company was renamed “Xinjiang Corps Insurance Company”, and a corresponding expansion of business scope. Xinjiang Production and Construction Corps, the establishment of agricultural insurance companies, breaking an exclusive monopoly of the Chinese People’s Insurance Company insurance market situation. In 1987, the People’s Bank of Communications approved [8.75 -0.46%] and its affiliates to establish Insurance Department. In May 1988, Ping An Insurance was established in Shenzhen, Shekou. In 1991, the People’s Bank of requested sub-sector insurance and banking operation, sub-sector management, and approval of the Bank of Communications, in its insurance division on the basis of the formation of China Pacific [15.64 2.76%] insurance companies, and became established after the Chinese People’s Insurance Company the second national comprehensive insurance. In September 1992, Ping An Insurance Company changed its name to “China’s Ping An [55.27 1.60%] insurance” has become the third nation-wide comprehensive insurance.

Since 1988, the PBC approved the Sichuan Province, Dalian, Shenyang, Changsha City and Xiamen City, the establishment of five joint-stock insurance company, began to explore the life and property insurance sub-sector ways of operating. After 1991, the PBC has successively approved in Zhuhai, Benxi, Xiangtan, Dandong, Guangzhou, Taiyuan, Tianjin, Fuzhou, Harbin, Nanjing, Kunming and other places the formation of joint stock life insurance company. In addition to the newly established life insurance companies to apply for business insurance, also accepted the local government commission, charge d’affaires of social insurance. China People’s Insurance Company of these life insurance companies are in possession of a certain stock.

In October 1994, the PBC approved the establishment of Shanghai Tian An [4.95 6.45%] Insurance Company. In January 1995, also approved the establishment of Volkswagen Insurance Co. Ltd. in Shanghai. In July 1996, the State Council approved the reorganization of the Chinese People’s Insurance Company of China People’s Insurance (Group) Company, consists of PICC Property Insurance Company Limited, PICC Life Insurance Company and PICC Reinsurance Company Limited, the implementation of production, life insurance separate operation. Under the “Insurance Law” established in the commercial insurance and social insurance, the principle of separation of operations, the State Council decided that 17 was fully integrated into the local life insurance companies PICC Life. To promote the healthy development of China’s insurance industry, October 7, 1998, the State Council approved “to withdraw the Chinese People’s Insurance (Group) Company to implement the program,” the original PICC Property Insurance Co., Ltd. changed its name to the Chinese People’s Insurance Company; the original PICC Life Insurance China Life Insurance Company Limited changed its name to [29.32 1.38%] insurance companies; the original PICC Reinsurance Company Limited was renamed as the China Reinsurance Company; to PICC Group’s other overseas operations of bodies are all assigned to Hong Kong, China Insurance (Holdings) Ltd. . In 1996, the People’s Bank has also approved the establishment of Xinhua Life Insurance Co., Ltd., Taikang Life Insurance Co., Ltd., Huatai Property Insurance Co., Ltd., Wing On Property Insurance Co., Ltd., Hua An Property Insurance Co., Ltd. joint-stock insurance companies and other 5 .

The reform and opening up, many foreign insurance companies interested in the Chinese insurance market, the huge development potential, hoping to enter China’s insurance market as soon as possible. Since 1980, foreign insurance companies have set up representative offices in China. As of the end of 1999, a total of 17 countries and regions, foreign insurance institutions set up 196 representative offices in China. In 1992, China began opening up the insurance market in Shanghai pilot. In September 1992, American International Assurance Co. Ltd. to set up branches in Shanghai approved to operate life insurance business and property insurance. AIA Shanghai branch of the introduction of life insurance agent system, marketing system, China’s insurance market had a huge impact, the activation of the potential for substantial life insurance market. In September 1994, Tokyo Marine and Fire Insurance Company is approved to set up branches in Shanghai, business and property insurance.

In 1999, there were 28 insurance companies. By investors points, four state-owned sole proprietorship, joint-stock insurance companies 9, four joint-venture insurance companies, foreign insurance companies, subsidiaries 11; by operating region, the national insurance company 8, the regional insurance companies 20 ; according to the nature of business hours, a comprehensive three insurance companies, financial insurance companies 12, 12 life insurance companies, reinsurance companies 1. Insurance market initially formed as the main state-owned commercial insurance companies, domestic and foreign insurance companies co-deposit, several insurance companies a new pattern of development of competition.

With the full recovery of the domestic insurance business, all insurance business achieved remarkable success. In 1980 premium income 460 million yuan, but by 1999 had grown to 139.32 billion yuan, an increase of 300 times, with an average annual growth rate of 35.08%. Insurance is also offered from the initial single property insurance, expanded to include property insurance, personal insurance, liability insurance, and hundreds of four main categories of credit risk insurance.

(A) property insurance

In 1979 to restore the domestic insurance business, first and foremost from the restoration of property and casualty insurance business began. From 1980 to 1995, the property insurance business in the domestic business accounted for an absolute advantage, 1980, 1981, the proportion of 100% in 1983 to 98.2% in 1985 to 82.3%. With the development of other insurance, property insurance to reduce the proportion of each year, by 1999 only 37.4%. In property insurance, business property insurance and transport, and third-party liability insurance is the main types of insurance. The beginning of the domestic business recovery, corporate property insurance premiums in the property insurance accounted for the majority, until 1987 was only means of transportation and third-party liability insurance to catch up, but so far business property insurance is still the major insurance of the domestic business 1. Transportation and third-party liability insurance for the development of fast, premium income in 1985, these two the proportion of the total premium income soared to 42.2% in 1987, jumped from the largest insurance for property insurance, and keep still.

(B) life insurance

In 1982, the Chinese People’s Insurance Company resumed opened personal insurance business, premium income that year was only 1.59 million yuan, accounting for 0.2% of total revenue premiums. By 1999, premium income of 87.21 billion yuan, accounting for 62.6% of total revenue premiums. Life insurance business to restore the initial stage, offered insurance mainly group personal accident insurance, easy life insurance, pension insurance, and later gradually extended to a variety of medical insurance, children’s education, insurance, wedding insurance, group life insurance.

(C) Agricultural Insurance

Agricultural insurance in 1982, began to recover on a trial basis, has developed very rapidly after the pilot, the pilot has gradually extended. Only when the pig insurance recovery on a trial basis, cotton, insurance, and several other insurance, but by 1999 had reached more than 100 insurance. As the agricultural insurance risk, underwriting technology complex, the payment rate, the world in general by the government to support it. Planting and breeding industry, insurance, two resumed on a trial basis since 1982, has been by the Chinese People’s Insurance Company to operate throughout the country. Xinjiang Production and Construction Corps in 1986 after the establishment of agricultural insurance, in the demarcation of the region have been running kinds, the raising of two insurance industry.

(D) Foreign insurance

Although the reform and opening up foreign insurance business, without interruption, but long-term hovering at a very low level. After 1980, with the continuous deepening of reform and opening up of foreign-related insurance business in the rapid development of insurance offered by more than 20 extended to more than 80, from the original scope of services extended to the introduction of technology import and export trade, joint venture projects, foreign contractors engineering, labor export, nuclear power plants, satellite launch, the international shipping and other fields. At present, China has the world’s insurance, more than 100 countries and regions, thousands of insurance companies established reinsurance business relationships.

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Domestic Insurance Business Closed

October 14th, 2009 youhan

(A) insurance business setbacks

Early ’50s, the Chinese People’s Insurance Company across agencies in the implementation of policies and specific practices and a lot of problems, mainly relying on administrative orders for the business, internal management is chaotic. Pilot experience in agricultural insurance in the case of a very immature comprehensive promotion, a number of grassroots cadres to carry out business and issue compulsory orders, adversely affect the masses. Insurance agency is developing too fast, and many cadres do not understand business, but only to the number of premium quality does not seek insurance contracts, a number of county-level companies make ends meet. In March 1953, the Chinese People’s Insurance Company Third National Insurance Working Conference and deviation of these errors were corrected to determine the “finishing city of business, suspended operations in rural areas, reshaping institutions, in the consolidation of steady progress on the basis of” principle.

To the end of 1953, closed around the basic agricultural insurance. On the closed agriculture and insurance, although most had no opinion, but some farmers do not want closed down and surrender of them have had some money or some understanding of the benefits of insurance. Because of the rural economy in most parts of the Northeast and Co-operative movement has developed rapidly vast majority of farmers do not agree to cease operation of agricultural insurance. Financial and Economic Committee for approval by the Government Administration Council, the Northeast region to re-apply for the insurance of farm animals. With the accelerated pace of agricultural co-operation, organized farmers produced a certain demand for agricultural insurance. However, with the socio-economic development of agricultural co-operatives from primary to senior community, livestock owned by the public and uniform use of the demand for insurance than the primary anti-social urgency.

Since 1953, the state compulsory insurance business in the city has made an adjustment: (1) closed state organs, the compulsory insurance of property and infrastructure sites compulsory insurance; (2) State-owned enterprises (including cooperatives) will continue to apply for compulsory insurance; (3) other businesses, according to whether the positive effect on production, the masses need and voluntary, they have unconditional and whether it meets the four principles of economic accounting, is divided into consolidation, contraction, closure of three types of clean up. As the advance of the socialist transformation of capitalist industry and commerce, urban voluntary insurance has declined markedly.

(B) The suspension of the domestic insurance business

In October 1958, Xi’an, China finance and trade conference pointed out: people’s communes, the insurance role of the work has disappeared, with the exception of foreign insurance business must continue to apply, the domestic insurance business should be immediately discontinued. In the same year in December, held in Wuhan, the official National Financial Conference to make “immediate closure of the domestic insurance business” decision. In January 1959, the Chinese People’s Insurance Company held its seventh national insurance work conference, and implement the spirit of the closure of the domestic insurance business, and the deployment of the aftermath clean-up. From 1959 onwards, the country’s domestic insurance business in addition to Shanghai, Harbin and other places continue to maintain for some time, but all the other places closed.

Suspension of domestic insurance business, industry and commerce in the cities and towns to complete the socialist transformation and the rural people’s communes hair situation to arise. Some people think that industry and commerce in cities and towns were basically the case of state-owned enterprises, the state can regulate the financial means to compensate for a variety of disaster losses, so the need for start-up city insurance is not. While in rural areas, people’s communes has changed in the past that a smaller scale, operating the project the status of a single agricultural cooperatives, their financial and material resources already have greater resilience and ability to compensate. Dominated by this understanding that the historical task of the insurance had been completed.

Upon closure of the domestic insurance business, the state agencies to consider from the streamline, but the Board consists of foreign operations in the People’s Bank Insurance Department, responsible for handling import and export of the central and insurance business in Beijing, leading domestic and foreign branches of business and engaging in, centralized processing the international reinsurance business and external activities in the outside business with the “Chinese People’s Insurance Company”, “China’s insurance companies” and “Tai Ping Insurance Company,” the name of the three companies.

In 1959, some cities in the domestic insurance business is not completely closed, including Shanghai, Harbin, Guangzhou, Tianjin and other places. In 1964, with the overall improvement in the national economy, the People’s Bank Business Bureau Insurance Service upgraded the foreign bureau a unit of foreign insurance companies are still using the name of the Chinese people by the part-time general manager, vice president of the People’s Bank.

From 1966 to 1976 ten years of chaos during the period, China’s domestic insurance business completely closed. In the “Left” thinking under the influence of the insurance is considered “private market economy,” “not suited China’s socialist economic base,” “handle an international reinsurance business more harm than good”, “is to rely on imperialism,” “re-insurance is Emperor repair redistribution of profits among the anti-”and so on, so it was suggested to be” thoroughly smash China’s insurance industry “, not only closed the domestic insurance business, but also suspended all foreign-related insurance and international reinsurance business. Clear bear the brunt of the 1969 Ministry of Communications in January closed a ocean-going vessels, insurance, overseas business has been greatly affected. And then discontinued the motor vehicle third party liability insurance. 1968, before the overseas business people from Hong Kong to an insurance company, China Insurance, Pacific Insurance Company distributed to the Chinese People’s Insurance Company, and then by the Chinese People’s Insurance Company’s external reinsurance unity. However, in 1969, the overseas business of foreign reinsurance by CAS Insurance agents, life insurance companies reinsure from China, Hong Kong, Macao, Singapore and other countries and regions into the insurance business under the management of the Hong Kong branch of China Insurance Company. By 1969, China has re-insurance relationship with the countries from the original 32 dropped to 17, have business dealings of the company from 67 down to 20, only with the socialist countries and the relationship between individual developing countries to maintain reinsurance. Actually stopped the years of development together with the West of the insurance market reinsurance transactions.

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Transform Of Old China And The Birth of life insurance industry

October 14th, 2009 youhan

       early days after liberation, people’s government to take over parts of the bureaucratic capital of the insurance companies, while rectifying transformation of private insurance companies for the new Chinese insurance industry created the conditions for the birth and development. The establishment of the Chinese People’s Insurance Company, marking China’s insurance industry has entered a new historical period of development.

(A) transform the old China’s insurance industry

To establish a new meet the needs of socialist construction, the insurance industry, in 1949 China’s insurance industry in old people’s government conducted a comprehensive clean-up, consolidation and transformation.

1 to take over the bureaucratic capital of insurance companies. Since the liberation of the eve of the bureaucratic capital of the insurance sector are concentrated in Shanghai, People’s Government to take over the work of the bureaucratic capital of insurance institutions in order to focus on Shanghai. Take over the work from May 1949 until the end of October has basically ended. Chinese insurance companies and exclusive products ship insurance, accident insurance, the crew of China Airlines accident liability insurance joint approval to resume operation, other bureaucratic capital of insurance institutions to be closed down. Shanghai outside of the bureaucratic capital of insurance institutions taken over by the local military control committee. At that time the bureaucratic capital of insurance institutions, due to the transfer of funds and responsible persons for corruption and misappropriation, assets have been depleted exhausted. Of its employees by the Military Control Commission of organizational learning politics, many people after the establishment of the Chinese People’s Insurance Company embarked on a people’s insurance industry new jobs.

2, transformation of the private insurance industry. After the liberation, the development of private insurance companies around the succession management practices, such as re-checked assets, required by business type deposited the corresponding bond and so on, and strengthen supervision and inspection. Under the new regulations, foreign private insurance companies to resume business in various places, but most insurance companies solvency weak underwriting capabilities are limited.

As the original reinsurance group most of the disintegration of the relationship between the external interruption of reinsurance, in the Military Control Commission’s support, July 20, 1949 in Shanghai, was established by the voluntary participation of private insurance companies reinsurance organization “China invited reinsurance exchange office “(referred to as NLD), the main fire handling reinsurance business. The establishment of the NLD, the promotion of the private Chinese merchants insurance business development, enhancing the credibility of the insurance industry. Public-private partnerships with the private insurance companies, the NLD completed its historic mission in early 1952.

In 1951 and 1952, public-private partnership, “Taiping Insurance Company”, “Xinfeng insurance company” were set up. Both companies are based on the number of private insurance companies formed, and its business scope is limited to specific areas and industry, operating on the abolition of the commission system and the agent system. In 1956, the national private commerce and industry after industry-wide public-private partnerships, the state property of public-private partnerships to implement compulsory insurance, designated the property for the processing of the Chinese People’s Insurance Company for compulsory insurance of statutory bodies. That same year, Pacific, and Xinfeng the two companies merged called “Pacific Insurance Company,” is no longer operating domestic insurance business, and specializes in overseas insurance. The merger of the two companies achieved the insurance industry-wide public-private partnership, marking the completion of the socialist transformation of the insurance industry. Since then, China’s domestic insurance business started by the Chinese People’s Insurance Company exclusive situation.

3, foreign insurance companies out of China’s insurance market. Before 1949, foreign insurance companies by virtue of their political privileges, as well as its strong financial strength, control of China’s insurance market. After the founding of New China, People’s abolition of their privileges, and to strengthen supervision, requiring re-registration and pay the deposit. In May 1950, the National there are 61 foreign insurance companies, of which 37 Shanghai, Tianjin 10, Guangzhou, 8, 5, Qingdao, Chongqing 1. Governments to adopt restrictive policies and the use of equal emphasis on the one hand, to allow their business to continue to handle a number of other insurance companies were not allowed to operate the business, such as marine insurance, foreign nationals foreign exchange and insurance; the other hand, proceeding from safeguarding the national interests, its business the scope and made the necessary restrictions on business activities, its violation of national laws and acts of insubordination be dealt with severely. With the rapid growth of state-owned insurance business and foreign insurance companies to lose not only rely on the Government to obtain the privileges of high profits, and have lost a great number of reinsurance income. In the state-owned foreign trade system and the new customs building, its source of direct business less and less. 1949 premium income of foreign insurance companies account for 62% of premium income in 1950 dropped to 9.8% in 1951 to 0.4% in 1952 was only 0.1%. To the end of 1952, foreign insurance companies in China one after another application for suspension of business, the withdrawal of China’s insurance market.

(B) the birth of the Chinese People’s Insurance Company

In August 1949, as soon as possible to restore and develop the national economy destroyed by years of war, the Central People’s Government in Shanghai held its first national financial conference. At the meeting, Bank of China proposed the establishment of “China People’s Insurance Company”, and immediately after the organizational preparations. Approved by the CPC Central Committee, the Chinese People’s Insurance Company on October 20, 1949 formally established. This is the founding of New China’s first state-owned insurance companies. After the founding of the Chinese People’s Insurance Company quickly established branches throughout the country and to parts of the People’s Bank relies on to build a broad network of insurance agents.

In line with the national economic recovery and development, the Chinese People’s Insurance Company to actively conduct business, focusing on state-owned enterprises undertaken above the county supply and marketing cooperatives and state organs, property and railways, ships, aircraft and passengers compulsory insurance. In the city, opened fire, transportation insurance, group and individual life insurance, car insurance, passenger accident insurance, parcel insurance, aviation and transport insurance, gold note insurance, shipping insurance and so on. In the Village, an active pilot agricultural insurance, mainly livestock insurance, cotton, insurance and fisheries insurance. To get rid of Western countries to control China’s insurance market, the Chinese People’s Insurance Company is also committed to the development of foreign business, and many friendly countries have established reinsurance relationships. In addition to handling direct business, but also private companies to accept reinsurance business. China People’s Insurance Company quickly become a national leader in the insurance industry and the power to fundamentally end the monopoly of China’s insurance market to foreign insurance companies situation.

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History Of China’s Insurance

October 14th, 2009 youhan

Refers to China from the Qing Dynasty before the Opium War, to The People’s Republic of China before the establishment of the insurance industry.
China’s modern form of insurance industry in the Western capitalism that emerged after the invasion of China. The first foreign insurance companies established in China, is before the Opium War in 1835 by the British set up in Guangzhou ocean Hirohito security line. Later, Guangzhou, Shanghai and other treaty ports also start to appear and a number of foreign insurance companies. These companies mainly engaged in the commodity distribution services, marine insurance, 19 century, 60 years later, was extended to the fire. Sino-Japanese War, along with the export of capital to China, the United States, France, Germany, Japan, China and other countries insurance companies have set up a company or agency. 1936, 15 countries, more than 160 registered insurance companies operating in China.
China’s own business insurer in order to Guangxu eleven years (1885) Merchants Steam Navigation Company founded by Ren-Ji and the two insurance companies with the earliest. In 1886 the two companies merged to Yan Chai and insurance companies, became the first Chinese business insurance industry.
During World War I, the West engaged in a war of imperialism, China’s national industry and commerce to obtain an opportunity to develop the insurance industry has seen rapid development. In addition to an insurance company this time, there are some large commercial companies concurrently insurance industry. If Sincere 1915 and 1922, the company has facilities in Shanghai and the establishment of the first insurance companies and buy products Sincere Life Insurance Company, and to set up branches in Guangzhou; Wing in 1916 set up water and fire insurance companies in Hong Kong, and subsequently in Shanghai , Hankou, Guangzhou expansion. Control over these companies through the insurance industry and commerce, and to absorb a wide range of social capital.
After 1926, China’s insurance company mainly invested by the bank to open. These companies rely on the strength of banks to establish branches throughout the country, company or agent by the bank. To 1936, Chinese business insurance has reached 40, though developing rapidly, but the business can not get rid of foreign companies on the control and domination, had to a large number of insurance business through reinsurance, be transferred to foreign companies or foreign insurance companies. Premium income in 1936 nationwide, an estimated 80% of foreign companies.
During and after the victory of Anti-Japanese War, because of the hyperinflation, so that insurance companies to take advantage of the insurance fund hoarding goods and materials, as well as real estate, gold and silver currency speculation, the insurance industry to leave the track.
After the founding of the People’s Republic in 1949, People’s Government to rectify and reform the insurance industry: In addition to take over the bureaucratic capital of insurance companies, private insurance companies on a voluntary basis, to be merged, and in October 1949 setting up the China People’s Insurance Company. Foreign insurance company to withdraw from China at the end of 1952. In recent years, China’s GDP growth has been maintained at about 10% in 2007 GDP growth is expected to continue to remain at around 10%, comprehensively promote the building of a harmonious socialist society, economic and financial situation of steady development, capital market development has entered a new era, the State Council No. 23 The paper further implemented, these favorable conditions for the development of the insurance industry is extremely rare development environment and opportunities.
With the full liberalization of trade, foreign life insurance companies have moved into the domestic market. Can not currently pose a threat to the domestic several big giants, but the competition will become increasingly fierce. In order to catch up with old Chinese-funded insurance companies nationwide marketing network, foreign-funded insurance (including joint ventures) Company in 2007, will be the rapid expansion of its network. This rivalry, will also be in product innovation, service upgrades, the use of such funds has shown most vividly. In contrast, in 2007 the Chinese-funded insurance companies is the key to years of hard face a challenge. To broaden the financing channels for internal preparations for listing, to meet the accession to the WTO five years after the external foreign insurance experience and technology challenges.
Currently there are insurance professional intermediaries 2110, and industry, agencies 141,000, insurance marketers 1.558 million people in 2006 realized investment gains and 95.53 billion yuan, the highest level in nearly three years. Nationwide Insurance through insurance intermediaries to achieve premium income of 447.75 billion yuan, accounting for the total premium income accounting for 79%. With the arrival of the demographic dividend period, the reform of public pension system, giving birth to the golden period of development of commercial life; the stock market bullish expectations, investment channels for insurance assets increasingly turn release significant expansion of opportunities for development.
With the 2008 Olympic Games approaching, China’s insurance market with potential for further increases, the insurance industry are bright prospects for future development. With economic development, the State, enterprises and the growing wealth of households, the community of property insurance demand will grow increasingly stronger. In particular, as the pace car to enter households gradually accelerate as the first major property and casualty insurance, auto insurance is no doubt a good development prospects for the development of the property and casualty insurance, “insurance.” Life insurance business is an important component of China’s insurance business, with the advance of China’s urbanization process, residents raise the level of per capita income and insurance awareness to enhance the purchase of commercial life insurance and the amount of the number of personnel will be substantial growth and longevity insurance, health insurance and accident insurance market, the prospects are very broad. 2010, the National Insurance revenues will double in 2005, exceeded 1 trillion yuan, insurance, depth (GDP, the proportion of premium income) 4%, insurance density (premiums per capita income) 750 yuan, to consider to the market the main increase in breakthrough product innovation and policy factors such as total managed assets of the insurance industry is expected to reach more than 5 trillion yuan.
The research consultancy report is based on National Bureau of Statistics, the State Council Development Research Center, China’s socio-economic Survey Research Center, China Insurance Association, the China Insurance Regulatory Commission, provincial insurance regulatory, economic climate monitoring center to provide a lot of information on China’s Insurance development of the market conditions and supply and demand conditions, insurance, competition pattern, development trends are analyzed, the insurance industry investment in areas such as in-depth discussions; but also on the China Life Insurance (Group) Company, PICC Property and Casualty Company Limited, China Ping An insurance company, American International Assurance Co., Ltd., enterprise development overview, development strategy

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