Life Insurance Market Report (China)
In China, up to 2005, 47 foreign insurance organizations from 15 countries and regions had established 121 operation organizations, and 135 foreign insurance organizations had set up nearly 200 offices. The premium revenue of domestic insurance companies has increased 9% y-o-y, while that of foreign funded insurance companies has increased 248.45% y-o-y in the past five years. The market shares of foreign life insurance companies amounted for 51.86%, 19.79% and 12.24% in Beijing, Shanghai and Guangdong respectively. The market share of foreign insurance companies had amounted to 5.6% in Nov, 2006, in addition, the premium revenue of AIA and Cenerali amounted to RMB 6.2 billion and RMB 4.6 billion separately, ranking the 7th and 8th largest life insurance companies in China.
According to the statistics of China Insurance Regulatory Commission, the insurance industry has maintained fast and healthy development momentum since 2006, and in the first 11 months of 2006, the premium revenue all over China had broken RMB 500 billion, in which the premium revenue of life insurance was RMB 379.8 billion, making a big contribution. while in the aspect of indemnity and paid-off, in the first 11 months of 2006, the total indemnity and paid-off of accident insurance, health insurance and life insurance amounted to more than RMB 56.3 billion, steadily increasing compared to the statistics in October.
In 2006, the first administrative measures on Health Insurance and the definition of Critical Illness standard were issued, influencing the standardization and professional processes of life insurance industry.
According to the statistics of China Insurance Regulatory Commission, the insurance industry has maintained fast and healthy development momentum since 2006, and in the first 11 months of 2006, the premium revenue all over China had broken RMB 500 billion, in which the premium revenue of life insurance was RMB 379.8 billion, making a big contribution. while in the aspect of indemnity and paid-off, in the first 11 months of 2006, the total indemnity and paid-off of accident insurance, health insurance and life insurance amounted to more than RMB 56.3 billion, steadily increasing compared to the statistics in October.
In 2006, the first administrative measures on Health Insurance and the definition of Critical Illness standard were issued, influencing the standardization and professional processes of life insurance industry.
1 China Life Insurance Industry Development, 2006-2007
1. 1 Development
1.1.1 Dividend Insurance Dominates the Industry, and the Health Insurance Demand Rose Rapidly
1.1.2 Life Insurance Industry Entering the 4th Advancement Period
1.1.3 The 10-year Demographic Dividend Period Promotes the Life Insurance Industry to Develop Rapidly and Well
1.1.4 Adjustment of Citizen Financial Assets Structure Provided Development Opportunity for the Company
1.1.5 The Rising of the Medium-level Income Group Expanded the Client Basis of Effective Life Insurance Demand
1.1.6 Public Pension System Reform Brings Important Development Opportunity for Commercial Life Insurance
1.1.7 Scale Economy and Brand Preference are Competitive Advantages
1.2 Influence of Life Insurance Industry Structure and Enterprise Operation Strategy on the Profitability
1.3 Increase Mode of China Life Insurance Companies and Sustainable Development
1.3.1 Profit and Loss
1.3.2 Classification and Grade of Expense, Difference and Loss
1.3.3 Development Phase
1.3.4 Increase Mode
1.3.5 Analysis of Increase Mode
1.3.6 Change the Increase Mode
2 China Life Insurance Market, 2006-2007
2.1 Comprehensive Analysis, 2006
2.2 New Products, 2006
2.3 Development Trend, 2007
3 China Life Insurance Market by Type, 2006-2007
3.1 Urban Personal Insurance Market
3.2 Status Quo of Rural Personal Insurance Market
4 Key Regional Life Insurance Markets in China, 2006
4.1 Beijing
4.2 Shanghai
4.3 Guangdong
4.4 Jiangsu
5 Demand of China Life Insurance Industry
5.1 Influencing Factors of Personal Life Insurance Demand under Mixed Operation
5.1.1 Objective Factors
5.1.2 Subjective Factors
5.2 Determinant Factors of Life Demand
5.2.1 Determinant Factors
5.2.2 Comprehensive Influence
5.2.3 Extrapolation of Model Conclusion
5.2.4 Conclusion Analysis
5.2.5 Policy Suggestions
5.3 Life Insurance Product Structure in the Aspect of Urban Citizen Insurance Demand
5.4 Analyze Life Insurance Product Development in the Aspect of Future Market Demand
6 Marketing of China Life Insurance Industry
6.1 Review and Forecast of Life Insurance Marketing System
6.2 Main Problems and Reform Ways
6.3 Marketing System Evaluation and Reform
6.4 Innovation of Marketing Mode
6.5 Improvement of Interior Marketing Environment
6.6 Current Psychology of Customers and Marketing Countermeasures
7 Sales Channel Innovations and Sustainable Development of Life Insurance Industry
7.1 Retrospect of Sales Channel Development
7.1.1 Individual Marketing Channel
7.1.2 Agent Channel
7.1.3 Group Direct-sale Channel
7.2 Necessity and Pressure of Sales Channel Innovation
7.2.1 Status quo of Life Insurance Market Requires further Exertion of Sales Channel Potential
7.2.2 Rapid Rising of Middle Class Will Bring Great Challenge for the Current Life Insurance Sales Channel
7.2.3 Marginal Production Capacity of Sales Channel in the Life Insurance Industry Shows Gradual Decrease Trend
7.2.4 Three Main Sales Channels also face a Series of Problems Restricting Productivity
7.3 Way Selection of Sales Channel Innovation
7.4 Specific Thoughts on Sales Channel Innovation in Life Insurance Market
7.4.1 Accelerate Interior Innovation of Sales Channel, and Exert the Current Channel Potential
7.4.2 Integrate Channel Resources, and Carry out Overall Marketing
7.4.3 Explore Diversified Sales Channels
8 Competition Pattern of China Life Insurance Industry, 2006-2007
8.1 Competition Pattern
8.2 Key Domestically-funded Insurance Companies
8.2.1 Chinalife Insurance Company Ltd
8.2.2 Ping an Insurance (Group) Company of China
8.2.3 China Pacific Insurance (Group) Co., Ltd
8.2.4 Taiping Life Insurance Co., Ltd
8.2.5 New China Life Insurance Co., Ltd
8.2.6 Taikang Life Insurance Company Ltd
9 Risk of China Life Insurance Industry
9.1 Operation Risk
9.1.1 Interest Increase Forecasts the Risk of Insurance Exit
9.1.2 Information System Risk Affects Security Operation of Insurance Enterprises
9.1.3 Financial Holding Groups may bring in Negative Cooperative Effect
9.1.4 Broadening of Investment Channel Expands the Capital Operation Risk
9.2 Interest Risk of Life Insurance Companies and Management
9.2.1 Source of Interest Risk of Life Insurance Products
9.2.2 Influence of Market Interest Rate Change on Operation of Life Insurance Companies
9.2.3 Countermeasures to Avoid and Solve Interest Risk
9.3 Main Risks in Life Insurance Operation
9.3.1 Pricing Risk
9.3.2 Sales Risk
9.3.3 Operation Risk
9.3.4 Management Risk
9.3.5 Policy Risk
10 Investment of China Life Insurance Industry
10.1 Investment Concept in Life Insurance Capital Operation
10.2 Feasibility of China Life Insurance Capital Introducing Venture Investment
10.2.1 Current Troubles
10.2.2 Insurance Capital Investment in UK, the USA etc
10.2.3 Suitability
10.2.4 Feasible Mode
10.3 Global Comparison
10.3.1 Significance of Effective Utilization of Insurance Capital
10.3.2 Comparison of Capital Utilization of Foreign Insurance Companies
10.3.3 Existing Problems of Domestic Insurance Companies in Investment
10.3.4 Countermeasures
LIST OF TABLES/CHARTS
Operation Statistics of Insurance Companies, Jan-Dec, 2006
Premium Revenue of Life Insurance Companies, Jan-Dec, 2006
Monthly Premium of Personal Insurance, 2006
Shares of Life Insurance Market, 2001-2006
Population Increase Change of Economic Activity, 1950-2050
Population Structure Change, 1950-2050
Top Ten Life Insurance Companies by Premium Revenue, 2006
Top Ten Chinese-funded Life Insurance Companies by Premium Revenue, 2006
Top Ten Foreign-funded Life Insurance Companies by Premium Revenue, 2006
Expansion of Interest Rate Gap between Insurance Bill and Deposit stimulates Life Insurance Sales to Increase Rapidly, 1989-2006
Market Shares of Life Insurance Companies, 2006
Quality Comparison of Chinese and Foreign-funded Life Insurance Business, 2004-2005
Steady Increase of Personal Insurance /Periodical Payment Ratio, 2004-2006
Personal Insurance Ratio Increase, 2004-2006
Renewable Insurance Rate, 2004-2006
Increase of Life Insurance Business, 2004-2006
Number Growth of Middle-level Income Family, 1985-1025
Middle-level Income Family Number and Ratio of Disposal Income, 1985-2025
Change on Increase of Ratio of Bank and Post Office Agent Marketing Channels, 2001-2005
Life Insurance Premium Revenue in Some Provinces, Cities and Autonomous Regions of China, 2006
Life Insurance Premium Revenue and Growth Rate Change in Beijing, 2005-2006
Ranking of Life Insurance Companies by Total Insurance Premium in Beijing, Jan-Dec, 2006
Life Insurance Premium Revenue and Growth Rate Change in Shanghai, 2005-2006
Ranking of Life Insurance Companies by Total Insurance Premium in Shanghai, Jan-Dec, 2006
Life Insurance Premium Revenue and Growth Rate Change in Tianjin, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Chongqing, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Guangdong, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Zhejiang, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Jiangsu, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Shandong, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Henan, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Anhui, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Hebei, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Liaoning, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Hubei, 2005-2006
Commercial health insurance will become the key means to bear medical expense
Inflation leads to decrease of life insurance consumption, and economic increase promotes the insurance premium increase
The 4th Growth Period: More Steady Structure Factor ranks the leading role
Population Dividend Period most fit for Development of Life Insurance and Investment Products
Population Dividend Period: Population Bear Coefficient will be lowest in History
Financial Assets Ratio of Insurance Companies will increase to 8% from 4%
Per Capita GDP Improvement Makes Assets Allocation towards Life Insurance and Investment Products
Resident Investment Inclination Comparison of Main Cities
Per Capita GDP Increase and Difference between Deposit and Loan Promotes Increase of Life Insurance/Saving Ratio
Income Improvement Raises Income Growth Rate and Marginal Saving Trend
Continuous Advancement of Urbanization Accelerates Insurance Depth Rise
Small-scale Family Increases the Demand of Life Insurance and Pension Products
Scale Economy Benefits of Life Insurance Companies, 2005
Influence of Business Scale on Expense Rate
Influence of Average Insurance Premium Increase on Life Insurance Market Expansion
CAGR of Premium Revenue of China Life, 2005-2025
Sales Revenue Forecast of China Life, 2004-2009
1. 1 Development
1.1.1 Dividend Insurance Dominates the Industry, and the Health Insurance Demand Rose Rapidly
1.1.2 Life Insurance Industry Entering the 4th Advancement Period
1.1.3 The 10-year Demographic Dividend Period Promotes the Life Insurance Industry to Develop Rapidly and Well
1.1.4 Adjustment of Citizen Financial Assets Structure Provided Development Opportunity for the Company
1.1.5 The Rising of the Medium-level Income Group Expanded the Client Basis of Effective Life Insurance Demand
1.1.6 Public Pension System Reform Brings Important Development Opportunity for Commercial Life Insurance
1.1.7 Scale Economy and Brand Preference are Competitive Advantages
1.2 Influence of Life Insurance Industry Structure and Enterprise Operation Strategy on the Profitability
1.3 Increase Mode of China Life Insurance Companies and Sustainable Development
1.3.1 Profit and Loss
1.3.2 Classification and Grade of Expense, Difference and Loss
1.3.3 Development Phase
1.3.4 Increase Mode
1.3.5 Analysis of Increase Mode
1.3.6 Change the Increase Mode
2 China Life Insurance Market, 2006-2007
2.1 Comprehensive Analysis, 2006
2.2 New Products, 2006
2.3 Development Trend, 2007
3 China Life Insurance Market by Type, 2006-2007
3.1 Urban Personal Insurance Market
3.2 Status Quo of Rural Personal Insurance Market
4 Key Regional Life Insurance Markets in China, 2006
4.1 Beijing
4.2 Shanghai
4.3 Guangdong
4.4 Jiangsu
5 Demand of China Life Insurance Industry
5.1 Influencing Factors of Personal Life Insurance Demand under Mixed Operation
5.1.1 Objective Factors
5.1.2 Subjective Factors
5.2 Determinant Factors of Life Demand
5.2.1 Determinant Factors
5.2.2 Comprehensive Influence
5.2.3 Extrapolation of Model Conclusion
5.2.4 Conclusion Analysis
5.2.5 Policy Suggestions
5.3 Life Insurance Product Structure in the Aspect of Urban Citizen Insurance Demand
5.4 Analyze Life Insurance Product Development in the Aspect of Future Market Demand
6 Marketing of China Life Insurance Industry
6.1 Review and Forecast of Life Insurance Marketing System
6.2 Main Problems and Reform Ways
6.3 Marketing System Evaluation and Reform
6.4 Innovation of Marketing Mode
6.5 Improvement of Interior Marketing Environment
6.6 Current Psychology of Customers and Marketing Countermeasures
7 Sales Channel Innovations and Sustainable Development of Life Insurance Industry
7.1 Retrospect of Sales Channel Development
7.1.1 Individual Marketing Channel
7.1.2 Agent Channel
7.1.3 Group Direct-sale Channel
7.2 Necessity and Pressure of Sales Channel Innovation
7.2.1 Status quo of Life Insurance Market Requires further Exertion of Sales Channel Potential
7.2.2 Rapid Rising of Middle Class Will Bring Great Challenge for the Current Life Insurance Sales Channel
7.2.3 Marginal Production Capacity of Sales Channel in the Life Insurance Industry Shows Gradual Decrease Trend
7.2.4 Three Main Sales Channels also face a Series of Problems Restricting Productivity
7.3 Way Selection of Sales Channel Innovation
7.4 Specific Thoughts on Sales Channel Innovation in Life Insurance Market
7.4.1 Accelerate Interior Innovation of Sales Channel, and Exert the Current Channel Potential
7.4.2 Integrate Channel Resources, and Carry out Overall Marketing
7.4.3 Explore Diversified Sales Channels
8 Competition Pattern of China Life Insurance Industry, 2006-2007
8.1 Competition Pattern
8.2 Key Domestically-funded Insurance Companies
8.2.1 Chinalife Insurance Company Ltd
8.2.2 Ping an Insurance (Group) Company of China
8.2.3 China Pacific Insurance (Group) Co., Ltd
8.2.4 Taiping Life Insurance Co., Ltd
8.2.5 New China Life Insurance Co., Ltd
8.2.6 Taikang Life Insurance Company Ltd
9 Risk of China Life Insurance Industry
9.1 Operation Risk
9.1.1 Interest Increase Forecasts the Risk of Insurance Exit
9.1.2 Information System Risk Affects Security Operation of Insurance Enterprises
9.1.3 Financial Holding Groups may bring in Negative Cooperative Effect
9.1.4 Broadening of Investment Channel Expands the Capital Operation Risk
9.2 Interest Risk of Life Insurance Companies and Management
9.2.1 Source of Interest Risk of Life Insurance Products
9.2.2 Influence of Market Interest Rate Change on Operation of Life Insurance Companies
9.2.3 Countermeasures to Avoid and Solve Interest Risk
9.3 Main Risks in Life Insurance Operation
9.3.1 Pricing Risk
9.3.2 Sales Risk
9.3.3 Operation Risk
9.3.4 Management Risk
9.3.5 Policy Risk
10 Investment of China Life Insurance Industry
10.1 Investment Concept in Life Insurance Capital Operation
10.2 Feasibility of China Life Insurance Capital Introducing Venture Investment
10.2.1 Current Troubles
10.2.2 Insurance Capital Investment in UK, the USA etc
10.2.3 Suitability
10.2.4 Feasible Mode
10.3 Global Comparison
10.3.1 Significance of Effective Utilization of Insurance Capital
10.3.2 Comparison of Capital Utilization of Foreign Insurance Companies
10.3.3 Existing Problems of Domestic Insurance Companies in Investment
10.3.4 Countermeasures
LIST OF TABLES/CHARTS
Operation Statistics of Insurance Companies, Jan-Dec, 2006
Premium Revenue of Life Insurance Companies, Jan-Dec, 2006
Monthly Premium of Personal Insurance, 2006
Shares of Life Insurance Market, 2001-2006
Population Increase Change of Economic Activity, 1950-2050
Population Structure Change, 1950-2050
Top Ten Life Insurance Companies by Premium Revenue, 2006
Top Ten Chinese-funded Life Insurance Companies by Premium Revenue, 2006
Top Ten Foreign-funded Life Insurance Companies by Premium Revenue, 2006
Expansion of Interest Rate Gap between Insurance Bill and Deposit stimulates Life Insurance Sales to Increase Rapidly, 1989-2006
Market Shares of Life Insurance Companies, 2006
Quality Comparison of Chinese and Foreign-funded Life Insurance Business, 2004-2005
Steady Increase of Personal Insurance /Periodical Payment Ratio, 2004-2006
Personal Insurance Ratio Increase, 2004-2006
Renewable Insurance Rate, 2004-2006
Increase of Life Insurance Business, 2004-2006
Number Growth of Middle-level Income Family, 1985-1025
Middle-level Income Family Number and Ratio of Disposal Income, 1985-2025
Change on Increase of Ratio of Bank and Post Office Agent Marketing Channels, 2001-2005
Life Insurance Premium Revenue in Some Provinces, Cities and Autonomous Regions of China, 2006
Life Insurance Premium Revenue and Growth Rate Change in Beijing, 2005-2006
Ranking of Life Insurance Companies by Total Insurance Premium in Beijing, Jan-Dec, 2006
Life Insurance Premium Revenue and Growth Rate Change in Shanghai, 2005-2006
Ranking of Life Insurance Companies by Total Insurance Premium in Shanghai, Jan-Dec, 2006
Life Insurance Premium Revenue and Growth Rate Change in Tianjin, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Chongqing, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Guangdong, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Zhejiang, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Jiangsu, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Shandong, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Henan, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Anhui, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Hebei, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Liaoning, 2005-2006
Life Insurance Premium Revenue and Growth Rate Change in Hubei, 2005-2006
Commercial health insurance will become the key means to bear medical expense
Inflation leads to decrease of life insurance consumption, and economic increase promotes the insurance premium increase
The 4th Growth Period: More Steady Structure Factor ranks the leading role
Population Dividend Period most fit for Development of Life Insurance and Investment Products
Population Dividend Period: Population Bear Coefficient will be lowest in History
Financial Assets Ratio of Insurance Companies will increase to 8% from 4%
Per Capita GDP Improvement Makes Assets Allocation towards Life Insurance and Investment Products
Resident Investment Inclination Comparison of Main Cities
Per Capita GDP Increase and Difference between Deposit and Loan Promotes Increase of Life Insurance/Saving Ratio
Income Improvement Raises Income Growth Rate and Marginal Saving Trend
Continuous Advancement of Urbanization Accelerates Insurance Depth Rise
Small-scale Family Increases the Demand of Life Insurance and Pension Products
Scale Economy Benefits of Life Insurance Companies, 2005
Influence of Business Scale on Expense Rate
Influence of Average Insurance Premium Increase on Life Insurance Market Expansion
CAGR of Premium Revenue of China Life, 2005-2025
Sales Revenue Forecast of China Life, 2004-2009
