Sep
1
China Life Aims to Expand Bancassurance Channel
Filed Under China, China insurance, Insurance Company, Life Insurance | 6 Comments
China Life Insurance Company Limited (China Life), the largest life insurance company in China by premium, has started to shift its sales strategy towards the bancassurance distribution channels. As a first for the company, the bancassurance channel has contributed more than 70% of the company’s insurance premiums for the first half of 2010, becoming a vital premium generator for the company.
Known for having the biggest insurance sales team in the country, China Life has been experiencing growth in the contributions from their bancassurance channel, as per a statement recently released in an interview with Wan Feng, president of this Beijing-based insurance company.
The term ‘bancassurance’ is often used to refer to the Bank Insurance Model (‘BIM’), which describes the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank’s sales channels, including branch offices, in order to sell insurance products. Bancassurance allows the insurance company to maintain smaller direct sales teams as their products are marketed and sold through the bank to customers by bank staff. Replacing the role of an insurance salesperson, bank staff and tellers become the point of sale and contact for the customer. Bank staff are advised and supported by the insurance company through product information, marketing campaigns and sales training.
By the end of June of this year, China Life had approximately 42,700 consumer and wealth management officers assigned to their bancassurance channel, spread over 97,000 branch outlets throughout the country.
China Life intends to accelerate its business expansion during the second half of 2010, to cement its footing in the most populous insurance market in the world, according to details also shared by Mr. Wan.
Insurance Company mentioned:
China Life Insurance Company Limited (China Life) is a People’s Republic of China-based life insurance company. The products and services include individual life insurance, group life insurance, accident and health insurance. The Company operates in four business segments: individual life insurance business, group life insurance business, short-term insurance business, and corporate and other business.
Aug
26
Liberty Mutual Group Expands in China Opening Zhejiang Branch
Filed Under China, China insurance, Insurance Company | 5 Comments
Liberty Mutual Group continues its expansion in China by starting branch operations in Zhejiang, after having received the approval of the China Insurance Regulatory Commission (CIRC). Liberty Insurance Company Limited (LICL) had received approval from CIRC to open the branch in Hangzhou, Zhejiang Province in December 2009.
The Chinese Province of Zhejiang has a population of more than 47 million people, and is located 700 miles to the south of Beijing. There was no foreign company operating in Zhejiang offering property and casualty insurance products, which makes Liberty Mutual the first company to penetrate this segment of the market in that part of China.
In addition to its presence in Zhejiang, Liberty Mutual has operations in Chongqing and Beijing. Through the branches at these three locations the company will offer product lines for personal insurance and a wide range of commercial insurance.
Liberty Mutual first opened a representative office in Shanghai in 1996, their expansion in China continued in January of the year 2004 when the company received the approval to open its first insurance office in Chongqing, gaining the strategic position of being the first foreign insurance company to offer property and casualty insurance products in western China.
Then on September 2007, Liberty Mutual received approval from the CIRC to have its Chongqing operation converted to a wholly-owned subsidiary, becoming Liberty Insurance Company Limited (LICL). This gave LICL the distinction of becoming the only Fortune 500 company subsidiary head-quartered in Chongqing.
The President of Liberty Mutual Group, David Long, described the achievements of the company with the following words: “Liberty Mutual’s strategy of being the first insurer to enter markets untapped by foreign companies in China continues to be successful. CIRC’s approval of our Zhejiang branch reinforces our reputation as a strong company committed to providing quality insurance in China.”
Insurance Company mentioned:
Liberty Mutual Group offers a wide range of insurance products and services, including personal automobile, homeowners, workers compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, assumed reinsurance, fire, and surety. Liberty Mutual Group employs over 45,000 people in more than 900 offices throughout the world.
Aug
25
Discovery Health in Agreement with Ping An Over Stake in Ping An Health
Filed Under China, China insurance, Health Insurance, Insurance Company, Medical Insurance | Leave a Comment
South Africa-based health insurance company, Discovery Holdings, has signed an agreement with Ping An Insurance Company to take a substantial stake in Ping An’s health insurance subsidiary, Ping An Health Insurance Company, in order to develop the Chinese health insurance market.
The agreement was signed during a trip to Beijing and Shanghai by South African government officials, including the President Jacob Zuma and 12 ministers, as well as a business delegation of over 320 South African business people. The agreement will see Discovery Holdings take an initial 20 percent stake in Ping An Health Insurance, Ping An Group’s health insurance subsidiary.
Discovery bought Standard Life’s health insurance unit in the UK earlier this year, enveloping it in its joint-venture with Prudential, PruHealth. With health insurance clients in South Africa and the UK reaching more than 2.9 million, Discovery’s experience in running health insurance businesses in both developed and developing insurance markets is seen as a large part in why Ping An picked Discovery for the partnership.
The number of upper- and middle-income households in China reaches 80-90 million, most of which are capable of affording top-up insurance to complement the Social Health Insurance system run by the government. The demand from this segment of the population for insurance products that cover private healthcare services, as well as drugs and diagnostic tests that fall outside the coverage schedule of the Social Health Insurance is increasing, and the government is encouraging health insurance companies to fulfill this need as it tries to roll out the Healthy China 2020 reforms.
Ping An Health Insurance is likely to benefit from the strengths of both Ping An Group and Discovery Holdings. Ping An Health Insurance can springboard off the back of Ping An Group’s scale, distribution network and experience in the Chinese market, while Discovery brings its array of health products, systems and processes, and data and risk management abilities to the table.
Adrian Gore, the Chief Executive Officer of Discovery Holdings said that “Ping An is an excellent partner. The Group is a leader in the Chinese insurance market, providing immediate scale, brand and distribution capability in this rapidly growing market.”
Ping An’s Chief Insurance Officer also sees a bright future ahead, adding that “Both Ping An and Discovery have a vision to fundamentally change the markets in which they operate, and provide consumers with innovative, benefit-rich products. Discovery is a global leader in consumer-engaged health care, and we are excited to have them as a partner. Through this cooperation, Discovery will also be able to share the massive distribution channel and customer base brought by Ping An.”
Insurance Companies Mentioned:
Discovery Holdings
Discovery is a financial services provider based in Johannesburg, South Africa, and was founded in 1992. Discovery offers health insurance and life insurance in different markets as well as investment services and credit cards. They also have a joint venture life and health insurance companies with Prudential called PruHealth and PruProtect, which are structured under the PruProtection banner.
Ping An Insurance Company
Ping An Insurance (Group) Company of China, Ltd. (Ping An) is engaged in providing a range of financial products and services. The Company focuses on three businesses: insurance, banking and investment. The Company operates in five business segments: life insurance business, property and casualty insurance business, banking business, securities business, corporate and other businesses. The Company’s subsidiaries include Ping An Life Insurance Company of China, Ltd. (Ping An Life), Ping An Property & Casualty Insurance Company of China, Ltd. (Ping An Property & Casualty), China Ping An Trust & Investment Co., Ltd. (Ping An Trust), Ping An Securities Company, Ltd. (Ping An Securities), Ping An Bank Co., Ltd. (Ping An Bank), Ping An Annuity Insurance Company of China, Ltd. (Ping An Annuity) and Ping An Health Insurance Company of China, Ltd. (Ping An Health), among others.
Aug
9
Bank of China Insurance Converted into BoC Subsidiary
Filed Under China, China insurance, Hong Kong, Insurance Company | 8 Comments
According to a recent announcement, the China Insurance Regulatory Commission (CIRC) has approved the Hong Kong-based Bank of China Group Insurance Co., Ltd. to transfer 100 percent of its stake in Bank of China Insurance (BoC Insurance) to the Bank of China. With this move, the Bank of China now becomes the sole shareholder of the BoC Insurance.
Before the policy was changed, the Bank of China (BoC) was not allowed to exert direct control over an insurance company. In order to comply, the BoC had indirectly entered the Chinese insurance market through its Hong Kong subsidiary, Bank of China Group Insurance.
BoC Insurance was established by Bank of China Group Insurance, a wholly-owned subsidiary of Bank of China, on 05 January 2005. At present, BoC Insurance has branches in 19 provinces and municipalities around China. BoC Insurance was initially designated to operate as a nationwide property insurance company.
On 11 April 2006, Bank of China and Bank of China Group Insurance Company Limited entered into a Sale and Purchase Agreement whereby the Company conditionally agreed to purchase 51 percent of the shares of BOC Group Life Assurance Company Limited (BOC Life) for a purchase price of US$115.4 million (EUR 86.8 million). BOC Life was incorporated in Hong Kong on 12 March 1997, as a wholly owned subsidiary of BOC Insurance, which itself was wholly owned by the BoC Group Insurance.
The principal business of BOC Life was the provision of life insurance policies to customers in Hong Kong, mainly through the extensive bancassurance distribution network of Bank of China (Hong Kong) Limited, a principal operating subsidiary of the Company. BOC Life, to a lesser extent, was also engaged in writing life insurance policies linked to investment products and retirement scheme management.
For the first six months of 2010, BoC Insurance realised premiums of US$177 million (EUR 133 million).
Upon completion of the share transfer exercise, BoC Insurance will become a wholly-owned subsidiary of Bank of China.
Insurance Company mentioned:
Bank of China Group Insurance Company Limited was established in July 1992. It mainly underwrites general insurance business and provides professional services and comprehensive coverage to customers. Since its establishment, the Company strives to achieve ‘Service Excellence, Product Diversification, Accountability and Customer Satisfaction’ by making effort in developing sources of business, implementing risk management, and adjusting effective marketing strategies. The Company has been in the forefront in the Hong Kong general insurance market for over 10 years.
Aug
5
Southern China Business Expansion for Manulife-Sinochem
Filed Under China, China insurance, Insurance Company, Life Insurance | 2 Comments
Aiming to further expand their business operations in Guandong province, Manulife-Sinochem has recently announced the opening of a sub-branch in Shantou. Manulife-Sinochem is a life insurance joint venture between the Canadian life insurer Manulife and the China Foreign Economy and Trade Trust Company, a member of the Sinochem group.
Shantou, an important port city located in the southern province of Guangdong, is one of the five special economic zones in China.
The insurance market in China is undergoing rapid development, and the opening of this new sub-branch in Shantou reflects the steady growth in business operations that Manulife-Sinochem has been experiencing in Guandong, becoming a significant life insurer in China.
Making good on their social responsibility, Manulife-Sinochem intends to nurture local talent to build a localised professional team, creating in the process more employment opportunities in the community.
Back in 2002 Manulife-Sinochem opened its first branch in the city of Guangzhou, located in the province of Guandong. Since then, and within that same province, the company continues developing their business operations in the cities of Foshan, Dongguan, Zhongshan, Jiangmen and Huizhou.
Based on figures released by the China Insurance Regulatory Commission (CIRC), during the first five months of 2010 the Guandong insurance market total original premium income of over US$8.4 million (EUR 6.4 million), of which life insurance accounted for US$6 million (EUR 4.6 million), approximately a 72 percent.
Insurance Company mentioned:
Manulife-Sinochem is a joint venture company between Manulife (International) Limited and China Foreign Economy and Trade Trust Company (a member of the Sinochem group). It was the first Chinese-foreign joint-venture life insurance company established in China. Manulife-Sinochem began operations in November 1996. To date the Company has more than 11,000 professionally trained agents and employees, providing financial and insurance services to over 500,000 customers. The company is now developing in over 40 cities including Shanghai and Beijing, and in provinces including Guangdong, Zhejiang, Jiangsu, Sichuan, Shandong, Fujian, Chongqing, Liaoning and Tianjin.
Jul
29
Ping An Health Insurance Approved to Open Zhejiang Branch
Filed Under China, China insurance, Health Insurance, Insurance Company, Medical Insurance | 1 Comment
Ping An Health Insurance Company of China, a wholly owned subsidiary of Ping An Insurance (Group) Company of China, has received approval from the China Insurance Regulatory Commission (CIRC) to set up a new branch in Zhejiang province.
Earlier this year, Ping An Health Insurance was also given approval by the central Chinese insurance regulator to open a branch in Jiangsu province. With the approval of the two new branches, Ping An Health Insurance now has 5 branches in China, although the CIRC says that both of the new branches in Zhejiang and Jiangsu will require operational licenses issued by the local insurance bureaus in the respective provinces.
Ping An Health Insurance already had branches located in Beijing, Shanghai, and Guangdong, and the approval for the two new branches will allow them to expand into the coastal provinces of Zhejiang, the province directly to the south of Shanghai, and Jiangsu, directly to the north of Shanghai. This will afford China Ping An Health Insurance the opportunity to enter into the markets in the relatively affluent cities of Nanjing in Jiangsu and Hangzhou in Zhejiang.
Original premium income in Zhejiang province between January and May, 2010 was RMB 33.04 billion (USD 4.87 billion), of which accident insurance comprised RMB 727 million (USD 107.2 million), health insurance made up RMB 1.05 billion (USD 154.9 million), property insurance RMB 10.86 billion (USD 1.6 billion), and life insurance making up the lion’s share of RMB 20.4 billion (USD 3 billion).
Similarly, the insurance industry in Jiangsu Province generated RMB 57.47 billion (USD 8.48 billion) in cumulative original premium income. Accident insurance accounted for RMB 1.16 billion (USD 171 million), health insurance RMB 1.91 billion (USD 281.8 million), property insurance RMB 13.08 billion (USD 1.93 billion), and life insurance constituting RMB 41.32 billion (USD 6.1 billion).
According to the Chinese Insurance Regulatory Commission, China Ping An Health Insurance received original premium income of RMB 64.38 billion (USD 9.5 billion) between January and May, 2010.
Insurance Company mentioned:
Ping An Insurance Company
Ping An Insurance (Group) Company of China, Ltd. (Ping An) is engaged in providing a range of financial products and services. The Company focuses on three businesses: insurance, banking and investment. The Company operates in five business segments: life insurance business, property and casualty insurance business, banking business, securities business, corporate and other businesses. The Company’s subsidiaries include Ping An Life Insurance Company of China, Ltd. (Ping An Life), Ping An Property & Casualty Insurance Company of China, Ltd. (Ping An Property & Casualty), China Ping An Trust & Investment Co., Ltd. (Ping An Trust), Ping An Securities Company, Ltd. (Ping An Securities), Ping An Bank Co., Ltd. (Ping An Bank), Ping An Annuity Insurance Company of China, Ltd. (Ping An Annuity) and Ping An Health Insurance Company of China, Ltd. (Ping An Health), among others.
Jul
26
United MetLife – Opens New Sichuan Branch
Filed Under China, China insurance, Health Insurance, Insurance Company, International Healthcare, MetLife | 1 Comment
MetLife announces the opening of its third Provincial branch in Sichuan. The unveiling of the new Sichuan branch is the first since United Metlife disclosed its plans to merge with Sino-US MetLife insurance business.
The planned merger between United MetLife and its Sino-US MetLife Insurance Company Limited is the first sign that MetLife is preparing for the two MetLife subsidiary’s to amalgamate; this follows the announcement by the China Insurance Regulatory Commission (CIRC) that foreign investors should only have one insurance operation on the mainland.
The Beijing based Sino-US MetLife insurance subsidiary planned merger with the Shanghai based United MetLife – creating Sino-US United MetLife Insurance – will ensure that MetLife follows the Chinese Authorities guidelines for foreign insurance investors in China.
In order for MetLife to meet its obligations – to become a single operating insurance provider in China – requires Capital Airport Holding to sell its 50% stake in Sino-US MetLife to Shanghai Alliance Investment which is MetLife’s JV partner in United MetLife.
Mr Marks, head of the Asia-Pacific region for MetLife said “China is a key strategic market for MetLife. By having a single partner across the country we can create a stronger brand and portfolio of offerings for the market. This will allow us to accelerate growth and in turn provide increased value to our customers.”
The opening of the new branch in the Sichuan province – together with the Chongqing branch – means MetLife continues to build the foundations in second-tier cities in western China, expanding its presence in the country; this has been a key focus for MetLife in recent years.
Sino-US MetLife Insurance Company Limited provides life, accident and health insurance to individuals in Beijing, Chongqing, Guangzhou, Shenzhen, Sheyang and Dalian. While United MetLife Insurance Company Limited offers life and accidental insurance products in Shanghai, Nanjing, Hangzhou, Ningbo and Wuxi.
The announcement of the Sichuan province branch comes at a time for MetLife when foreign investors in China, aim to strengthen their presence in this prosperous country. The growing demand for insurance products – to cover accident and health in China – is a key revenue stream for MetLife since they acquired the American Life Insurance Company.
The Asian insurance industry – especially China – has been transformed in recent years, with foreign investors competing for a percentage of this profitable market. MetLife’s activities in China was estimated to generated Yuan 3 billion (US$442 billion) in 2009 – a figure accounting for less than 1% of the Chinese insurance market.
Insurance company mentioned:
MetLife
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Jul
9
Generali China Life Leading Foreign-Funded Life Insurers
Filed Under China, China insurance, Health Insurance, Insurance Company, Life Insurance | 2 Comments
Generali China Life Insurance Co. Ltd. is leading the pack of foreign-funded life insurance companies in China, after ranking no.1 for five consecutive months from the end of 2009 to April 2010.
Generali China Life Insurance Co. Ltd. is a joint-venture company; 50 percent owned by Assicurazioni Generali S.p.A. (Generali) and the other 50 percent owned by China National Petroleum Corporation (CNPC). Generali China Life received CNY 4.5 billion (US$ 664.1 million) in written premiums during the 2009 financial year, and in the first five months of 2010 it has already received written premiums worth CNY 3.7 billion (US$ 546 million).
Generali China Life has expanded at different rates in different Chinese markets; some of those in which it grew the most include Beijing, Shanghai, Guangdong province and Shandong Province. In the Beijing life insurance market alone, premium revenue reached around CNY 1.74 billion (US$ 256.8 million) by the end of the 2009 financial year, ranking 7th out of all life insurers and 1st among foreign-funded companies.
In contrast, during the first five months of 2010, Generali China Life’s premium revenue in the city of Beijing reached CNY 2.15 billion (US$ 317.3 million), increasing it’s market share from 3.29 percent to 7.48 and making its way into the list of top five life insurance companies in the Beijing market. During the same time period, the no. 2 foreign-funded life insurer, Sun Life Everbright Life Insurance Co., Ltd., earned CNY 656 million (US$ 96.8 million) in the Beijing market.
Industry analysts say that Generali China Life’s success may be derived from their line of twelve bancassurance products, which include one China health insurance product, three investment-linked life insurance products, three universal life insurance products, with the remaining five products being participating general insurance products.
Insurance Companies Mentioned:
Generali China Life Insurance Co. Ltd. was founded in 2002. The joint-venture company owned in equal part by Assicurazioni Generali S.p.A. (Generali) and China National Petroleum Corporation (CNPC) was the first joint-venture insurance company to get approval from the Chinese Government after China joined the World Trade Organization.
The Generali Group is one of the most significant participants in the global insurance and financial products market. The Group is a leader in Italy and Assicurazioni Generali, founded in 1831 in Trieste, is the Group’s Parent and principal operating Company. Generali is one of the leading global players in the assistance sector thanks to the Europ Assistance Group, active in more than 200 countries with services in the motor, travel, healthcare, home and family sectors. In recent years, the Group has made a significant return to 14 central-eastern European markets and has set up offices in the principal markets of the Far East, including China and India.
Jul
6
Raffles Medical Group Opens Medical Center in Shanghai
Filed Under China, China insurance, Expat Insurance, Healthcare, International Healthcare | 4 Comments
Raffles Medical Group (RMG) has opened a new medical center in Shanghai to offer residents of the city another option when seeking medical care that is up to the highest of international standards.
The new clinic, named Raffles Medical – Shanghai, is located in the Innov Tower on Hong Mei Lu which is situated within Shanghai’s business park. Designed to offer world class medical care to expatriates, corporate customers and high net worth mainland Chinese, Raffles Medical – Shanghai is equipped to provide comprehensive medical services; including, health screening, general medical and dental treatment.
The Director of Operations at Raffles Medical – Shanghai, Yong Yih Ming said “China’s economic growth has cultivated a pool of Chinese who can afford high-quality medical care of international standards,”
The new addition of Raffles Medical – Shanghai offers a new regional platform to RMG, which already has a network of 72 clinics throughout Singapore and Hong Kong. Yong Yih Ming also added that “We have more than 30 years of experience in providing integrated care. From primary to specialist to tertiary health care, we offer a complete continuum of health care services, covering even health insurance and health supplements.”
Company mentioned:
Raffles Medical Group was started in 1976 with two clinics in Singapore. Since then, RMG has grown into a large integrated healthcare organization, offering general family medicine through their expansive network of clinics in Singapore and Hong Kong and their private hospital in Singapore. They also offer international health insurance services, traditional Chinese medicinal care and aesthetic medical treatments.
Jun
30
Chinese and American Healthcare Comparison by CIGNA CEO
Filed Under CIGNA, China, China insurance, Health Insurance, Healthcare, USA Health Insurance | 2 Comments
As well as being the fourth largest commercial insurer in the US, American health insurance giant CIGNA conducts approximately 20 percent of their business abroad, with most of the rapid growth coming from Asia, and in particular China.
In the US domestic market, CIGNA mainly acts as a Health Management Organisation (HMO) providing larger-scale employers with insurance packages, whilst their main role in China is in selling supplemental packages to individuals wanting more coverage than what is available under basic government-provided plans.
In the words of David Cordani, CEO of CIGNA, “It’s a real critical part of our growth strategy. It’s not new for Cigna, it’s just an acceleration” commenting on the continued and significant growth experienced abroad.
Further sharing his insights about the non-US marketplace, Mr. Cordani believes that the healthcare systems of both the US and China could learn from each other, explaining that in broader terms, the non-US marketplace has a very vibrant individual supplemental segment, from which to learn by providing people in the US with transparency, choice, and ready access to more retail-oriented policies.
Conversely, the healthcare system in China could learn more about American population-based health programmes including health coaching, disease care and lifestyle programmes.
Given that both countries are undergoing healthcare reforms on their respective healthcare systems, the insight offered by Mr. Cordani may be the type of food for thought needed to drive quality and cost improvements that will ultimately help make the new legislations correspondingly sustainable.
Insurance Company mentioned:
A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioural health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.