The China Bank & Insurance China Regulatory Commission(CBIRC) recently issued a reply, agreed to the opening of Guobao life, which became the first life insurance company to be established after the establishment of the CBRC, and it was the first company with a nationwide life insurance license in Sichuan.
"Securities daily" reporter found that national treasure life is the 87th company to open personal insurance. Data shows that the Guobao life led by the Sichuan provincial government, the Sichuan Provincial Investment Promotion Bureau since July 2014. January 2017, the CIRC approved the preparation of national treasure life.
September 2017, Guobao Life in Chengdu convened the founding of the General Assembly and the first shareholder meeting, the preparatory group leader Yi Jun elected Chairman of the company, preparatory deputy leader Chui Yi elected as president of the company. Guobao life invested by Sichuan Development Limited liability company, Chengdu Advanced Manufacturing Industry Investment Co., Ltd., CICC Holding Group Co., Ltd. and other 9 companies jointly, registered capital of 1.5 billion yuan. After receiving the opening reply, David Life will proceed with the qualification approval application and insurance product preparation work of directors, supervisors and senior management personnel.
It is expected that the May Guobao Life insurance business will start. Guobao Life is located in Chengdu, Sichuan, Sichuan Province, the financial industry is an important part of the map.
Guobao life related official said,it will be concentrated into Sichuan in 2 years, launched a series of public-oriented insurance products to serve the province's economic and social development. Statistics show that since 2017, a total of 17 insurance companies have been approved for business, 4 insurance companies were approved for preparation. Among them, 15 business insurance companies including Hetai, Huagui life, love life, China Merchant Renhe life, Three Gorges life, Beijing life and Guobao life seven traditional life insurance company, the mutual benefits of property insurance, Shimmi Mutual Insurance, Friends of construction and property Mutual Insurance three mutual insurers,PICC Endowment and PICC Reinsurance two, Guangdong Yuedian and Cosco Marine Two captive companies, and Fosun Joint Health, Taiping Technology insurance and Yong-Cheng Capital pipe three companies. The latest data disclosed by the CIRC show that in addition to Gruobao life, there are currently 86 life insurance companies in China.
China's insurance industry has ushered in the golden period of development, but the Matthew effect is significant, the Insurance Association of China reported, though the sustainable development of the industry prospects and the financial attributes of the life insurance industry continue to attract fresh capital inflow.
The National Financial work Conference held in July 2017 has positioned the insurance as "the function of long-term prudent risk management and guarantee", and a number of regulatory policy provisions have been promulgated, aiming at "reducing lever, limiting structure, controlling assets, preventing risks", and transforming from many aspects to "insurance insured". On the other hand, the Matthew effect of the life insurance industry is intensified, not only in the quantity of growth, but also in quality. 2012-2016, China's life insurance premiums increased by 1.2 trillion yuan, seven large companies accounted for about 40%.
The main agent channel of high value business of life insurance company shows explosive growth; among them, large companies, through a more mature mechanism of self-development, share most of the dividends of the agent's increase and recruit nearly 90% of the new workforce. From the net profit point of view, from 2014 to 2016, the profit ratio of the small and medium-sized companies was 20.14%, 23.2%, 19.32% respectively.
The report of China Insurance Association said that in the current stage of the rapid development of our country, a large number of small and medium-sized companies survive and develop in the following three aspects. First, there is no value of premiums, sustained losses.
In the past few years, some small and medium-sized companies rely on the asset-driven debt model for unconventional development, increasing market share, operating profit mainly from the short-term spreads of investment banking business, not the long-term death of the protection business is poor. Second, asset-driven debt is unsustainable.
The regulatory authorities want to stop the asset-driven debt development model, to earn short-term spreads model is not sustainable, small and medium-sized companies to survive the problem again, urgent need to seek a new breakthrough. Third, the market main body increases, the competition intensifies.
At present, there are nearly 80 life insurance agents in China, the number of which is second only to the United States and Britain, twice times that of Japan; due to the homogeneity between companies, small and medium-sized companies and large companies, small and medium-sized companies compete fiercely.
For the small and medium-sized insurance enterprise survival difficult at present, the report from the macroscopic and microcosmic two aspects carries on the analysis. From the macroscopic perspective, the financial industry on the external spillover of life insurance industry. The entire financial system in some sense to form an external spillover force, to a certain extent, disrupt the life insurance industry's operating nature and market environment, small and medium-sized companies or active or passive to follow the strategy to join the short-term financial products of the Red Sea competition, and deviate from the security of life insurance main business.
Under the trend of strict supervision and "insured surname", the asset-liability driven development model is unsustainable. On the microcosmic level, the first is the irrational expectation of the shareholders. The shareholder background of middle and small life insurance company is complicated, the expectation and use way of life insurance license are very different, which brings about a great change of corporate governance structure, some shareholders lack understanding and understanding of life insurance industry, dissimilation Life Insurance Company's position and the use of life insurance license. Second, the strategic positioning is not practical. Most small and medium-sized companies do not really position themselves as a small and medium-sized companies, and blindly pursue the national layout and expand scale. Third, small and medium-sized companies operating mode has no characteristics. Lack of their own market segments and the corresponding supporting management system. Four is the talent mechanism does not match. Small and medium-sized companies operating strictly in the sense of entrepreneurship, the need for entrepreneurial talent, a large number of small companies are filled with the pursuit of jobs, treatment, ease of personnel, lack of entrepreneurial spirit necessary. Five is not supported by product attributes.
Life insurance products homogeneity of the prominent, small and medium-sized companies in the product to distinguish themselves, the formation of differentiated, characterized by product management.
Source: Securities Daily 2018-04-15
