Insurance Blog

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.