China Life Insurance Market Report

2007

Publication Date	August 2007
Publisher	Research in China
Product Type	Report
Pages	116
ISBN Number	not applicable
Product Code	RIC00206

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£870.00
approximately: $1,502 | €1,105

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Summary

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.

Content

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