Opening to the outside world, transformation, strict supervision, return to the source, and the stability of the real economy have all become 2018InsuranceKey words of the industry, this trend will continue until 2019.
On January 10, at the regular meeting of the China Insurance Regulatory Commission, Qi Jiang, deputy general manager of AVIC Safety Insurance Co., Ltd., said that increasing the opening up of the insurance industry is a major positive for foreign-invested insurance companies and has enhanced foreign investment.shareholderThe party’s confidence in the investment in China’s insurance industry.
“Next, our shareholders will continue to increase investment in China, especially in their own operations and development, accelerate the layout of our business branches and agricultural insurance, product innovation, and provide better insurance in a wider area. Service." Lijiang said.
The predecessor of AVIC UNITA, UNITA Insurance (China) Co., Ltd., is one of the first professional agricultural insurance companies in China and the first foreign insurance company to register its headquarters in the western part of China.
Although in the process of opening up the financial industry, the insurance industry was the earliest. However, after years of development, the insurance premiums of foreign-invested insurance companies in the domestic insurance market are still low. The development of foreign-invested insurance companies is still facing a situation of acclimatization.
According to the company's introduction, since its inception, the company has always placed "integration", "combination" and "innovation" in the first place, and continuously increased the intensity of localization and integration, not only fundamentally solving the problem of foreign experience "unacceptable". It also effectively promoted organizational innovation, product innovation and technological service innovation in agricultural insurance in underwriting areas.
The company's deputy general manager, acting secretary of the board of directors Desaian said that the company has a relatively clear division of labor in daily operations management. For example, the French side focuses on technical aspects, such as actuarial, reinsurance, product development, etc.; the Chinese side focuses on marketing, human resources, administrative management, etc., the two sides of the division of labor do not separate, always maintain a smooth communication, deliberation, decision-making channels.
“The company has formed an efficient operation mechanism. In the practice of standardizing the governance structure, it has gradually explored the actual operation mode of the joint venture company, which can not only exert the enthusiasm of the management personnel of the Chinese and French, but also play a check and balance role in corporate governance. Said Desaian.
Unprecedented opening to the outside world
Since 2018, the insurance industry has accelerated its opening to the outside world at an unprecedented pace, and various opening measures have also been launched. For example, the shareholding ratio of foreign shareholders of foreign-invested personal insurance companies will be reduced to 51%, and no restrictions will be imposed after three years; qualified foreign investors will be allowed to come to China to operate insurance agency business and insurance public valuation business; The business scope is consistent with that of Chinese-funded institutions.
With the release of a new round of open signals, many foreign-invested insurance companies have expressed interest in the Chinese market and actively rushed to the beach. At the end of November 2018, Allianz (China) Insurance Holdings Co., Ltd. was approved by the Banking Insurance Regulatory Commission and became a major positive measure for China's financial industry to increase its opening up.
It is foreseeable that the number and market share of foreign-invested insurance companies will increase in the future and usher in new development opportunities.
According to the incomplete statistics of the First Financial Reporter, in 2018, the Banking Insurance Regulatory Commission accepted and approved more than 10 market access applications. For example, ICBC AXA Life Insurance Co., Ltd. plans to establish ICBC Ansheng Asset Management Co., Ltd., Dahan Reinsurance Company to establish a branch, and Germany Allianz Insurance Group to establish Allianz (China) Insurance Holdings Co., Ltd.
Zhu Junsheng, deputy director of the Insurance Research Office of the Financial Research Institute of the Development Research Center of the State Council, said that with the increase in the penetration of foreign insurance companies into the Chinese insurance market, the impact of its prudent business philosophy will gradually expand, and its experience in long-term business development will be Spillover will promote the transformation and high quality development of China's insurance market.
While accelerating the opening up to the outside world, the insurance industry, especially life insurance, is accelerating its transformation. On the one hand, the premium growth model is driven by the transition to the future, and on the other hand, in order to return to the protection of the source, insurance companies pay more attention to the risk protection and long-term savings. The product type is also gradually shifting to protection and long-term savings.
The characteristics of some insurance companies to renew their premiums have already appeared, but while accelerating the transformation, life insurance premiums in 2018 are still showing a slowdown in growth. According to the data of the China Insurance Regulatory Commission, although the growth rate of premium income in 2018 rebounded month by month, as of the end of November, the original insurance premium income of life insurance business was 1966.405 billion yuan, down 4.75% year-on-year. However, the original insurance premium income of the health insurance business was 505.88 billion yuan, a year-on-year increase of 23.22%.
In 2019, the growth rate of premium income in the life insurance market is still under pressure.Xinhua InsuranceWan Feng, chairman and CEO, recently expressed his opinion that life insurance premiums may continue to grow negatively in 2019, and health insurance business will grow by more than 30%.
Zhu Junsheng believes that due to the relatively limited rate of return of the newly launched products in the current market environment, the competitiveness needs to be improved, coupled with the slowdown in manpower growth and the per capita capacity still to be improved, resulting in relatively limited growth in business income of individual insurance. “As far as possible, the increment of renewal premiums is matched with the reduction of the premiums paid, and the “big bend” is realized, avoiding the new risks arising from the “rapid bend”.
It is worth noting that in the context of return protection, the concentration of life insurance market has intensified, and the operating conditions of insurance companies have intensified.
In terms of profitability, the 2018 life insurance company's solvency report shows that more than 30 life insurance companies have lost money. In 2019, small and medium life insurance companies will continue to face the dual pressures of transformation and survival. Many responsible persons of small and medium-sized insurance companies have said that the establishment time is short and there is a lack of marketers to accumulate, and the company's development faces challenges.
Zhu Junsheng believes that the transformation pressure of small and medium life insurance mainly comes from the following aspects: First, product development and channel construction are difficult; second, insufficient asset investment capacity; third, short-term behavior causes spread loss and fee difference risk; Survival pressures brought about by the transition, such as less shareholder returns. Supervision should grasp the strength and the rhythm of industry transformation, leaving the company with time and space for structural adjustment. Of course, in this process, life insurance companies should also pay attention to the matching of assets and liabilities, avoiding the high debt cost and possibly causing the spread loss and forcing the asset to make aggressive investment.
(Article source: First Financial Daily)