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Issue 25 (April to June 2013)
Welcome to Issue 25 of the China Newsletter, covering developments in the Chinese insurance market in the second quarter of 2013.
From January to June, about half of the domestic life insurance companies reported negative growth in premium income, compared with the same period last year, while around 80% of the foreign insurers had positive growth.
Several insurance companies have launched strategic cooperation projects to improve on various aspects such as policy innovation and client services. The industry continues to explore broader market opportunities by cooperating with large e-business suppliers, independently researching and developing online sales platforms and electronic mobile client platforms.
In this quarter, the CIRC approved the capital injection plans of 12 life and non-life insurance companies.
The CIRC promulgated theOverall Framework of the China Risk Oriented Solvency System (or C-ROSS) in order to further improve solvency
supervision and establish a scientific and effective second-generation solvency supervision system.
We hope you continue to find this Newsletter interesting and informative. We would particularly like to receive your feedback on how we can improve this Newsletter over time to increase its value to you.
Towers Watson Risk Consulting and Software, China
The Chinese
Insurance Market
China Mainland | April to June 2013In this issue
Industry statistics
Market update
New entrants
Expansion and capital injection
Corporate developmentsRegulatory update
CIRC promulgates Overall Framework of the China Risk Oriented Solvency System (or C-ROSS)
CIRC modifies Provisions on the Administration of Insurance Broker Institutions
CIRC regulates investment in insurance companies by limited partnership equity investment enterprises.
CIRC regulates administration of agricultural insurance terms, conditions and premium rates
CIRC regulates agreements ondegrees of disability and sum assured claim ratio in personal insurance contracts
CIRC regulates the business scope of insurance companies
CIRC issues regulations on Pension Business Management
CIRC releases Pilot Measures for Insurance Institutions to Invest and Establish Fund Management CompaniesDistribution
Insurance agency firms
Insurance brokers
Insurance assessment institutionsProducts
Personnel changes
Contact details
Industry statistics
January to June 2013
From 2011, CIRC started to publish premium income under China GAAP accounting standards whereby premiums received in respect of policies which are deemed to be “non-insurance “ products are excluded. Figures in this sector are under China GAAP.
The Chinese insurance industry generated gross written premiums of RMB 951.2 billion from January to June in 2013, up by 11.5% compared with the same period last year, according to the CIRC.
The contribution of life premiums was RMB 555.7 billion, an increase of 7.6% compared with the corresponding period in 2012. The contribution of non-life premiums was RMB 312.7 billion, and personal accident and health was RMB 82.9 billion, up by 15.8% and by 24.1% year-on-year respectively.
Life insurers
The total life premium income collected by domestic life insurance companies from January to June in 2013 was RMB 593.8 billion including both life and short term business, an increase of 7.8% compared with the same period last year, accounting for 95.1% of the total life premium.
About 50% of the domestic life insurers have reported negative growth for the period from January to June this year.
China Life reported an 8.8% increase in premium income with RMB 208.3 billion, still ranking first in the market and taking 33.4% of market share. Ping An (including life, health and pension) remained in second position, with premium income of RMB 90.6 billion, a year-on-year growth rate of 14.8%. China Pacific Life reported premium income of RMB 56.3 billion, increasing by 1.9% compared with the same period in 2012 and took the third place in the market. New China Life became the fourth, reporting a decrease of 8.2% in premium income with RMB 51.3 billion. PICC life and health business combined reported a 10.9% year-on-year decrease with premium income standing at RMB 42.7 billion.
Taiping (life and pension combined) reported a year-on-year growth of 68.0% with premium income of RMB 33.1 billion. China Post Life reported a 126.6% increase in premium income, at RMB 18.7 billion. Zhongrong Life, Kunlun Health, Sino-Conflux and Pearl River Life have all expanded from January to June in 2013, with premiums up by more than 100% on a year-on-year basis.
Company Premium
(RMB billion) Growth
China Life 208.31 8.8%
Ping An 90.56 14.8%
China Pacific Life 56.27 1.9%
New China Life 51.34 (8.2%)
PICC Group 42.72 (10.9%)
Company Premium
(RMB billion) Growth
Taiping Life 33.10 68.0%
China Post Life 18.66 126.6%
Zhongrong Life 2.13 727.4%
Kunlun Health 0.29 185.6%
Sino-Conflux 0.12 117.1%
Pearl River Life 0.01 1048.1%
Foreign / joint venture life companies together generated premium income of RMB 30.3 billion from January to June this year, up by 38.5% compared with the same period last year.
Around 80% of the foreign companies reported a positive premium income increase. ICBC-AXA grew by 924.4% with RMB 6.5 billion premium income. AIA, in second position, generated a RMB 4.4 billion premium income being a 7.8% increase. Sino-US United Metlife, which ranked third, showed a 24.7% increase to RMB 2.6 billion compared with the same period last year. Shin Kong & HNA Life and BoCommLife have both expanded in January to June 2013, up by 123.4% and 60.1% on a year-on-year basis.
Company Premium
(RMB billion) Growth
ICBC-AXA 6.50 924.4%
AIA 4.39 7.8%
Sino-US United Metlife 2.62 24.7% Shin Kong & HNA Life 0.24 123.4%
BoCommLife 0.68 60.1%
Non-life insurers
Domestic non-life insurers’ gross premium income
increased by 16.6% to RMB 323.1 billion in the period from January to June in 2013. Foreign companies’ gross premium income reached RMB 3.9 billion, up by 16.2% compared with the same period last year.
PICC Property & Casualty Insurance (RMB 115.3 billion), Ping An Property & Casualty Insurance (RMB 53.7 billion), and China Pacific Property & Casualty Insurance (RMB 42.3 billion) remained the top three non-life insurers, with a total of 65.4% market share in terms of premium income by the end of June this year. These three insurers achieved premium growth of 14.3%, 10.2%, and 20.3% respectively.
Among the foreign non-life insurers, AIG Insurance Company China Limited remained top, with premium income of RMB 0.57 billion in the first six months this year, slightly up by 0.2% compared with the corresponding period in 2012. Groupama Avic Insurance’s gross premium was RMB 0.52 billion, up by 58.3% compared on a year-on-year basis, and took second position. Allianz, rising to the third, had premium income of RMB 0.37 billion, increased by 14.1% compared with the same period last year.
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Market update
New entrants
Dehua Ergo Life Insurance Company Limited (德华安顾人寿 保险有限公司) has been approved by the CIRC to open business with registered capital of RMB 0.6 billion. The company, registered in Jinan, is funded by Shandong State-owned Assets Investment Holdings Co., Ltd, Ergo
Insurance Group and Ergo Life Insurance Company with investment respectively of RMB 0.3, 0.12 and 0.18 billion.
Expansion and capital injection
The latest approvals for the opening of new provincial/city branches for both domestic and foreign companies are as follows:
Non-life insurance
companies Branch
AIG Insurance Company China
Ltd. Zhejiang
The following insurance companies have obtained approval from the CIRC to make capital injections from April to June of 2013. Accumulated registered capital is listed as follows:
Insurance companies Registered capital (RMB billion)
China Life Reinsurance 6.72
China Post Life 4.00
Great Wall Life 1.77
Hua Xia Life 5.50
Kunlun Health 0.52 PICC Group 42.42 PICC Life 25.76 PICC P&C 13.60 Sino Life 11.75 Sino-US MetLife 2.40
Taiping Pension
1.70 Tianan Life 2.50Corporate developments
Anbang Insurance created one of the first overall mobile marketing platforms in the industry, which can complete overall process, sales management, team management, daily office work and all relevant other tasks, and provides clients with a brand new insurance marketing model.
Cardif Assurance Vie has announced it will purchase ING’s stake in ING-BOB Life Insurance, which is jointly owned byING and Bank of Beijing. Following the transaction, ING-BOB Life Insurance will be jointly owned by Cardif Assurance Vie and Bank of Beijing, each holding a 50% share.
CPIC P&C establishes a cooperative and comprehensive relationship with Euler Hermes Credit Underwriters Limited, a unit of Allianz Group, in insurance product
development, operational management, market expansion, etc.
China Reinsurance Property & Casualty Data Analysis Centre is established in Beijing. It is aimed to analyse property insurance industry data and to support the industry’s further development.
China Taiping Insurance Group and the Government of Shandong Province have signed a strategic cooperation agreement in Hong Kong. The two sides will actively participate in infrastructure and electrical energy construction in the form of debt or equity investments; steadily improve innovative applications of agricultural insurance, critical illness insurance, environmental pollution liability insurance and other insurance products in
Shandong Province.
China Taiping Insurance Group announced its overall reform to become a Group company with the Ministry of Finance and the CIRC agreed on the reform program of China Taiping Group. China Taiping Insurance Holdings Limited will issue 863 million shares for HKD 15.39 per share to its parent company – China Taiping Insurance Group and China Taiping Insurance Group Limited Hong Kong Company, and acquire the assets of the parent company. The total transaction amount is HKD 13.3 billion (RMB 10.6 billion).
Ding He Property Insurance Co., Ltd and CITIC Bank Limited signed a strategic cooperation agreement. The two companies will cooperate in concurrent-business through insurance agency, asset custody, cash management, bank card business, electronic commerce and capital clearing network business.
The CIRC has approved the application of mutual agency between Dubon P&C Insurance Co, Ltd. and Sinatay Life Insurance Co, Ltd. The two sides will carry out mutual agency cooperation in property insurance, liability
insurance, life insurance and other products.
Fosun Prudential Life Insurance, a joint-venture insurance company, has signed a cooperation agreement with Tebon Securities, which will become a full agent to sell Fosun Group’ insurance products. This represents the first such collaboration between an insurance company and a securities company in Shanghai.
Hua An Insurance became one of the four permanent members of the Asia Financial Cooperation Union. This Union is formed mainly by medium and small sized domestic banks, devoted to analysing the development of the financial industry and also to supporting reasonable appeals from union members.
AXA purchased a 50% share of Tian Ping Auto Insurance Company with RMB 3.9 billion on 24 April. After the transaction, auto insurance will be the company’s main business, while commercial insurance and health insurance will also be developed.
Industrial and Commercial Bank of China (ICBC) and China Taiping Insurance (Group) launched the ‘ICBC - Taiping’ joint debit card. This is the first nationwide joint debit-card which can provide both finance and bank insurance services.
Jiangtai Insurance Brokerage Company has almost completed the second stage of pre-listing. The company is expected to be the first insurance agency listed in the A
-share market.
New China Life Insurance Company Ltd. and China Huarong Asset Management Ltd. signed a strategic cooperation agreement in Beijing. The two companies will cooperate in investment and financing, insurance, trust, securities, futures and other derivatives, investment banking, private Equity (PE) funds and financial leasing.
New China Insurance will spend up to RMB 10 billion to subscribe to a share of the equity investment plan, launched by Xinhua Asset Company, the joint trustee.
China Pacific Insurance's Pacific Asset Management Company has successfully initiated the "Pacific China Construction Yang Yu Freeway debt investment plan". The debt plan is the first unsecured debt investment plan launched by the company, and also the first registered unsecured debt plan after the introduction of the policy approved by the CIRC.
People's Insurance Company of China (PICC) Group will establish a health care company with Kangmei Pharmaceutical Co., Ltd. The new company will set up a new model of Chinese health products, focusing on health management services and health product distribution.
PICC Group was approved to issue 10-year subordinated debt with the scale of up to RMB 16 billion.
PICC Group, PICC Life Insurance and American International Group (AIG) held a signing ceremony for the establishment of a joint venture sales company. The two sides jointly invested RMB 100 million to set up a national insurance sales and services company.
Ping An Group plans to invest RMB 50 million to set up a credit-rating company, whose main target customers are micro-credit companies, and P2P lending platforms. The project has already been submitted to the company headquarters for approval. Afterwards, the formal application will be submitted to the central bank.
Alipay is going to provide insurance against stolen items purchased through Alipay’s Express Checkout service. All Express Checkout users will receive 100% compensation if the items they purchase through the service are stolen. Ping An Property & Casualty Insurance Co. Ltd. will handle the insurance policy and all insurance costs will be paid by Alipay.
Qubao Company (趣保公司) formally launched a mobile App in Shanghai, which can be used to search for personal commercial car insurance. It also combines some related services, including fare comparison, service comparison, quick reports, claims assistance and personalized services. Qubao expects to build a third party insurance platform for insurance search and price comparison.
Sino-Conflux Insurance changed its place of registration to Ganzhou, Jiangxi. The company is renamed to "Ruijin Life Insurance Co., Ltd."
Tianping Auto Insurance Company Ltd. was approved to issue 10-year subordinated debt and the maximum amount is no more than RMB 500 million.
Taiping General Insurance Co., Ltd and China
Insurance Services Group (CISG) renewed their strategic cooperation agreement. Taiping General Insurance becomes CISG’s core partner and CISG will also be the preferred insurance agency of China Taiping.
Zhonghui International Insurance Brokers Co., Ltd plans to set up the first risk management group in China this year. The company is going to raise fresh capital and take control of 4-5 insurance brokerage firms. This will contribute to the founding of an insurance broker alliance.
The first securities company controlled insurance broker, Zhong Tou Hui Xin Insurance Broker (中投汇鑫保险经纪 公司) has been set up. It is invested by China Jianyin Investment Securities for RMB 50 million.
Zurich Insurance Company Beijing Branch is converted to a fully owned subsidiary insurance company.
Regulatory update
CIRC releases Overall Framework of China
Risk Oriented Solvency System (or C-ROSS)
To further improve solvency supervision and establish a scientific and effective second-generation solvency supervision system, the CIRC has issued the Overall Framework of the Second-Generation Solvency Supervision System of China (known as China Risk Oriented Solvency System or “C-ROSS” in English). Mechanism features include:
Relative to the more mature markets, C-ROSS places focus more on cost of capital, qualitative supervision, adaptability of market participants, dynamics of the market, ability of market participants to operate and execute, and enforceability by the regulator.
The Second Generation Solvency Supervision System’s assessment of asset and liability should reflect the actual risk conditions and variations of companies promptly and appropriately. The capital requirement should comprehensively and accurately reflect various risks. The supervision measures should be more risk-oriented.Supervision factors include：
Pillar one - Quantitative capital requirements;
Pillar two - Qualitative supervision requirements;
Pillar three - Market discipline mechanism. Supervision bases include：Copyright © 2012 Towers Watson. All rights reserved. towerswatson.com 5
Internal solvency management is the foundation and basis for the solvency management reviewed by the regulator.
A scientific and effective internal solvencymanagement mechanism which can actively identify and prevent various risks, and to respond promptly to changing risks.
CIRC modifies Provisions on the
Administration of Insurance Brokering
Institutions
The CIRC announced modifications to the Provisions on the Administration of Insurance Brokering Institutions on 27 April 2013 as follows:
The 8th provision is modified as “The registered capital limit to set up an insurance brokering institution is RMB 50 million, unless stated otherwise by the CIRC. Its registered capital shall be paid-in capital.CIRC regulates investment in insurance
companies by limited partnership equity
investment enterprises
In order to provide guidelines for private capital entering the insurance industry, the CIRC announced that limited partnership equity investment enterprises investing in Chinese insurance companies should meet the following requirements:
In one single insurance company, the share of one limited partnership equity investment enterprise and all limited partnership equity investment enterprises shall not exceed 5% and 15% respectively.
Limited partnership equity investment enterprises are not permitted to become the largest shareholder of insurance companies, the controlling shareholder or the actual controller or to participate in the business management of insurance companies.
Limited partnership equity investment enterprises that are for a fixed investment term should transfer the shareholdings before this term expires.CIRC regulates administration of agricultural
insurance terms and conditions and
premium rates
In order to improve administration of agricultural insurance terms, conditions and premium rates, and to encourage the steady development of agricultural insurance business, the CIRC released the Notice on Strengthening the
Administration of Agricultural Insurance Terms and Conditions and Premium Rates. When applying to CIRC, companies should meet the following requirements:
In principle insurance liability should cover primary risks in regions where the insurance subjects are located;
The sum assured should take full consideration of the risk protection needs of insured farmers and match the underwriting capacity of the companies;
Premium rates should be set as fixed numbers rather than in a range form. Premium rates can be adjusted by certain factors, according to the administration level, risk distribution, or past claims history of the insured.CIRC regulates agreements on degrees of
disability and sum assured claim ratio in
personal insurance contracts
In order to further regulate agreements on the degrees of disability and sum assured claim ratios in personal insurance contracts, and to better protect the interests of insurers and insured, the CIRC announced the following:
Personal insurance contracts whose liability involves claims on disability should specifically define degrees of disability and the corresponding sum assured benefit ratios in the terms and conditions. Insurers should categorizes the degrees of disability and set sum assured benefit ratios fairly;
The degrees of disability assessment standards in insurance contract terms and conditions should be compatible with national standards set by national administrative department of standardization or industrial standards set by other administrative departments under the State Council;
The Insurance Association of China undertake research work about technical standards, develop degrees of disability and sum assured benefit ratio standards for insurance companies. The Association should also invite professional organizations and institutions to check such standards and then release the results to the public;
Insurance companies should submit a pricing review report of short-term accident insurance products to the CIRC before 15 March every year.CIRC regulates the business scope of
insurance companies
In order to regulate the business scope of insurance companies, establish and improve the admission and exit mechanisms in the insurance industry and encourage professional and differentiated development, the CIRC released its Measures for the Hierarchical Management of Business Scope of Insurance Companies.
According to insurance business characteristics, the business scope of insurance companies can be divided into two levels, basic and extended:
Basic business of non-life insurance companies includes: auto insurance, enterprise/family property and engineering insurance, liability insurance, shipment insurance and short-term health/accident insurance;
Extended business of non-life insurance companies includes: agricultural insurance, special risk insurance, credit insurance and investment insurance;
Basic business of life insurance companies includes: life insurance & annuities, health insurance, accident insurance, participating insurance and universal insurance;
Extended business of life insurance companies includes: unit-linked insurance and variable annuities;
Newly founded insurance companies are only permitted to apply for basic business;
Only after acquiring business qualification for three product types of basic businesses shall insurance companies apply for extended business. Companies can apply for one business each time and should wait for six months before the next application.CIRC issues regulations on Pension
Business Management
In order to encourage the insurance industry to actively participate in the establishment of a multi-level pension system and a healthy development of pension business management operations, the CIRC released the Interim Administrative Measures for Pension Business
Management, and will regulate operations as follows:
Pension insurance companies that engage in pension management operations shall set up a separate account for pension management funds. A pension management fund shall be administered in accordance with the principles of special account management, segregated accounts and independent accounting to ensure that the pension management fund is independent of any natural persons, legal persons or other organizations that provide services for the management of the fund.
Pension insurance companies can operate pension business independently, or authorize other qualified financial institutions to take partial responsibility as the manager, but should take ultimate responsibility for their own pension business management operation.
Pension management funds should implement third party custodian mechanisms.CIRC releases Pilot Measures for Insurance
Institutions to Invest and Establish Fund
Management Companies
To further enhance competition within the industry and boost development of the fund industry, the CIRC cooperated with the China Securities Regulatory Commission (CSRC) to release Measures for Insurance Institutions Investing and Establishing Fund Management Companies.
Insurance institutions that can apply for investing and establishing fund management companies include insurance companies, insurance groups, insurance capital management companies and other insurance institutions;
Insurance institutions that apply for investing and establishing fund management companies should meet equity investment regulations of the CIRC;
In terms of risk controls, the pilot measures require that insurance institutions and fund management companies should have legal independent status, that they assume independent legal responsibilities; implement independent trusteeship, independent decision making, independent trading and independent accounting.
In terms of supervision, the CIRC and CSRC together will establish a cooperative supervision andinformation sharing mechanism.
Distribution
Business written by insurance intermediaries (including insurance agencies, insurance brokers and insurance assessment institutions) reached RMB 27.78 billion for the first quarter of 2013. Insurance intermediaries’ operational income amounted to RMB 4.83 billion, up by 23.54%
compared with 2012Q1. .
By the end of 2013Q1, the numbers of insurance agencies, insurance brokers and insurance assessment institutions were 108,433 and 322 respectively. The total registered capital of insurance intermediaries increased to RMB 16.94 billion, up by 49.15% compared with 2012Q1.
Insurance agency firms
Insurance agency firms generated total premium income of RMB 16.76 billion in 2013Q1. Life insurance accounted for 26.71% with 4.48 billion and non-life insurance for the remaining 73.29% with RMB 12.28 billion.
The operational income from insurance agency firms reached RMB 2.95 billion in 2013Q1. Life insurance contributed RMB 0.88 billion, and non-life insurance contributed RMB 2.07 billion, with shares of 29.8% and 70.2% respectively.
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Insurance brokers
Premium income from insurance brokers reached RMB 11.02 billion in 2013Q1. Life insurance contributed RMB 1.38 billion, non-life insurance contributed RMB 9.27 billion and reinsurance contributed RMB 0.37 billion.
Operational income from insurance brokers reached RMB 1.51 billion in 2013Q1. Life, non-life, reinsurance and consulting business contributed RMB 0.17 billion, RMB 1.11 billion, RMB 0.03 billion and RMB 0.20 billion respectively.
1.4 4.5 9.3 12.3 0.4 0 5 10 15 20 Insurance Broker Insurance Agency
Premium Income Breakdown(RMB Billion)
Life busines Non-life Reinsurance
Insurance assessment institutions
Insurance assessment institutions generated operating income of RMB 0.37 billion in 2013Q1, up 24.75%
compared with 2012Q1. The income for life insurance, non-life insurance and other business was RMB 2.64 million, RMB 0.36 billion and RMB 10.85 million respectively.
Products
AIA has launched two health care insurance products which are designed for both adults and children, providing high amount of sum assured, high renewable age and comprehensive covered health care service. The insured can enjoy full amount of hospitalization expenses
compensation and 4 times of sum assured accumulated for whole life. People from 0 to 60 years old can purchase this product and renewable age reaches up to 80.
Anbang Life has launched a universal whole life insurance product, which combines investment management with insurance protection. Except for the single premium when purchasing the policy, there is no initial charge, no risk premium and no policy management fee, so the premiums can all be invested into the personal account with daily compound interest and interested credited monthly, which has a minimum guaranteed benchmark. In addition, it has a wide range of coverage from 28 days following birth to 70 years old.
Aviva-COFCO has launched an annuity package. It has a wide scope of eligibility ranging from 30 days to 60 years old; premium terms are flexible including single, 3 years, 5 years, 10 years, 15 years and 20 years. In addition, clients can choose to receive an income from age 55, 60 or 65 and for a term of 20, 30 and 40 years, according to their own requirements. The payment amount can also be determined by clients.
China Life has launched a pension package with a wide range of coverage, including annuity, nursing-care
insurance for the daily-life-disabled, critical illness insurance and long-term accident insurance. The package consists of four products including participating annuity, term disease insurance, nursing care insurance and long-term accident insurance.
China Life has launched a health care insurance rider covering medical expenses caused by altitude sickness. It is specifically designed for tourists who travel in Tibet, characterized by low price, and wide coverage. It includes accident protection, compensation for clinics and
hospitalization medical expenses for altitude sickness and reimbursement of funeral expenses. Tourists can purchase the insurance via travel agencies. Premiums are either RMB 50 or 100 and claims are up to RMB 200,000 within the first 15 days.
China Life has launched a micro- insurance product covering urban low-income groups. When the insured dies, becomes disabled or suffers 3rd degree burns due to various accidents such as fire, flood, thunder, electric shock and drown, the insured can claim up to RMB 80,000.
Sino-US United Metlife has launched a free health care insurance product for its clients. Within the insurance period, if the insured suffers from the specific flu defined in the contract and is diagnosed to be hospitalized; claims will be paid calculated as the amount of payment per day times hospitalized days. The specific flu defined in the product refers to H7N9 or H5N1. The coverage period is 90 days.
PICC P&C Company Limited issued the first short-term export credit insurance in China, which represents the official beginning of short-term export credit insurance business of domestic P&C insurance companies.
PICC P&C Zhangjiagang Branch has launched the first Jiangsu summer green leaf vegetable price index insurance. When the average market retail price of the insured
vegetable is lower than the daily average retail price during the policy period, the policy holder can get compensation according to contracts. The CIRC said that it is aimed at encouraging insurance companies to develop new agricultural insurance products with moderate protection, low premiums and straight forward policies.
Ping An P&C has launched a comprehensive homeowner insurance package. The product combines both property and contents cover.
Ping An P&C has launched a flight cancellation insurance product with mangocity.com. When booking domestic "three prohibitions" airfares (no refund, no postponement and no changing special fares at mangocity.com), consumers can buy special flight cancellation insurance to avoid such prohibitions, also consumers will get compensation if they voluntarily return the ticket within seven days after the flight departure.
Taikang Life has launched an endowment insurance package. This product aims to meet customers’ need for wealth accumulation, pension planning, children’s education, wealth succession and personal protection. Starting from the 2nd contract year, the insured can have an annual payment of 10% of the sum assured paid before age 60 and 20% from 60 to 105. If the insured dies before 79, claims of 400% of the sum assured deducted by survival payment can be made.
Taiping Life has launched a critical illness insurance product. Besides the 25 types of diseases pronounced by the CIRC, it covers 30 additional common and newly defined critical diseases. This product provides dividends and offers clients an annuity-conversion option. In other words, clients can convert their claim fully or partially into an annuity and have annual payments; or the client can convert cash value fully or partially into an annuity after the 20th policy anniversary.
Personnel changes
Chen Yaozhong (陈耀中) has been appointed General Manager of Dazhong Insurance Co., Ltd.
Chen Yuan (陈远) has been appointed General Manager of Zhongrong Life Insurance Co., Ltd.
Dai Hao (戴皓) has been appointed Chairman of the Board of Union Asset Management Co., Ltd.
Guo Yongli (郭永利) has been appointed Chairman of the Board of Taishan Property &
Casualty
Insurance Co., Ltd. Huang Yingzhao (黄英钊) has been appointed General Manager of Beibuwan Property & Casualty Insurance Co., Ltd.Jin Wu (金武) has been appointed General Manager of Zheshang Property &
Casualty
Insurance Co., Ltd. Li Fei (李飞) has been appointed General Manager of Huaxia Insurance Co., Ltd.Li Yan (李燕) has been appointed Chairman of the Board of Beibu Gulf Property & Casualty Insurance Co., Ltd.
Liu Xianlong (刘显龙) has been appointed General Manager of China United Property Insurance Co., Ltd.
Tu Jincheng (屠锦成) has been appointed Chairman of the Board of Zheshang Property &
Casualty
Insurance Co., Ltd. Uchiumi Naoyuki(内海直之) has been appointed General Manager and Chairman of the Board of Aioi Nissay Dowa Insurance (China) Co., Ltd.Wang Bin (王滨) has been appointed Chairman of the Board of Taiping Life Insurance Co., Ltd.
Xu Rongxian (许荣贤) has been appointed Chairman of the Board of Cathay Insurance Co., Ltd.
Yang Yongbiao (杨永彪) has been appointed General Manager of Pramerica Fosun Life Insurance Co., Ltd.
Zhang Hanping (张汉平) has been appointed General Manager of Sino Insurance Asset Management Co., Ltd.
Zhang Likai (张利凯) has been appointed Chief Actuary of Kunlun Health Insurance Co., Ltd.
Zuo Fenggao (左凤高) has been appointed Chairman of the Board of Cinda Property &
Casualty
Insurance Co., Ltd.towerswatson.com 9
Contact details
Towers Watson’s Risk Consulting and Software business in China is based in Shanghai and Beijing. Please contact Adrian Liu, Michael Ross and Wesley Cui for life insurance, Jenny Lai and Yao Wang for non-life insurance and Steve Kean for distribution consulting.
Adrian Liu – General Manager, Life Insurance Consulting, China
Jenny Lai – Director, Property and Casualty Insurance Consulting, China
Steve Kean – Director - Insurance and Wealth Management Consultancy, Asia Pacific Michael Ross – Director, Life Insurance Consulting, Greater China
Wesley Cui – Director, Life Insurance Consulting, China
Yao Wang – Director, Property and Casualty Insurance Consulting, China Beijing
29/F Floor, Kerry Centre South Tower 1 Guang Hua Road
Chaoyang District Beijing, 100020, China Tel: (8610) 5821 6000 Fax: (8610) 8529 7884
Shanghai
11/F Floor, Kerry Centre 1515 West Nanjing Road Shanghai, 200040, China Tel: (8621) 5298 6888 Fax: (8621) 5298 5161 Emails: adrian.liu@towerswatson.com jenny.lai@towerswatson.com steve.kean@towerswatson.com michael.ross@towerswatson.com wesley.cui@towerswatson.com yao.wang@towerswatson.com
Towers Watson is present in seven locations in Greater China, including Beijing, Shanghai, Shenzhen, Guangzhou, Wuhan, Hong Kong and Taipei.
The Chinese Insurance Market newsletter has been prepared by Towers Watson for general information purposes only and does not constitute professional advice. The information, opinions and projections contained in this Newsletter are derived from various sources and have not been independently verified by Towers Watson. If you require professional advice or require any further information please contact any of the above named individuals. Errors and omissions expected.
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