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M&R of foreign insurance industry will be staged



This time the financial industry to open up, there is no "wolf" voice, but the market is in the undercurrent surging! At the Boao Forum for Asia held in Hainan on April 10, Yi Gang, the central bank governor, announced major financial liberalisation initiatives, restrictions on foreign ownership in the banking, insurance, asset management, securities and futures sectors, and an across-the-board liberalisation of the insurance intermediaries, agents and brokerage businesses. A stone stirred thousands of layers of waves, easy to outline the speech of the entire Chinese financial industry opened the door to open all of a sudden.

And in the rapid rise of the insurance industry, the most personal insurance is also in it. According to the policy of opening up the financial industry, the contents of the next few months involving the opening up of the insurance industry include: the upper limit of the foreign shareholding of personal insurance companies should be relaxed to 51%, 3 years later no longer set; Allow eligible foreign investors to operate insurance agency business and insurance assessment business in China

To liberalize the scope of business of foreign-funded insurance brokerage companies, and to agree with Chinese institutions, and to open a two-year representative office requirement before the establishment of foreign insurance companies. "The insurance industry in China is in the majority, and the financial sector is big enough to open up," he said. 2001 China's accession to the WTO, the insurance industry is the first to open up, but also the highest degree of marketization, but until now nearly 20 years, the joint venture life insurance companies in the domestic premium market share is still very small, the next 20 years will not follow the release of this policy, there will be new changes, we

"April 15, Chen Dongmei, director of the insurance Department of Fudan University, said. But what is the mentality of foreign capital? Is it as the caper mentality of 17 years ago?

Is the industry's concern.

The dilemma of the joint venture life In the domestic life insurance industry, foreign capital from the once unlimited scenery into the market, to enter the market after the "acclimatized" effect, the 2013 appeared for a year or two foreign shareholders to withdraw from the Chinese life insurance market; and now the domestic insurance giant has almost monopolized the market,
As a foreign investment in China's life insurance industry, the standard joint venture life insurance company business has not progressed, the premium market share of only about 6%.

Official data show that in 86 personal insurance companies, 58 Chinese institutions in the first two months of the original premium income of 730.4 billion yuan, 28 joint venture life insurance company premiums 45.3 billion yuan, investment-type premium income of the former 242.5 billion yuan, the latter total only 8.7 billion yuan, the gap is obvious. "Britain's Prudential, Germany and the United States, France and China, if from 2001, and the U.S. AIG Group, enter the Chinese market is not short, but these foreign giants in the Chinese life insurance market is not successful." Some foreign-funded insurance in Europe, America and Australia has been operating for several years and even withdrew from the market. During the 17 years when foreign capital entered China, joint venture company shareholders in the appointment of personnel, management rights, strategic layout, there are gaps, and because both sides have no leading power, the two sides of the phenomenon of the constraints between the shareholders are not uncommon, which led to the withdrawal of Chinese capital or foreign withdrawals, the new Oriental life is a typical example. At present, the total size of the domestic insurance industry has more than 16 trillion, compared with before the WTO increase of dozens of times times, the size of the joint venture is also growing, but overall compared with the Chinese, both profitability and operating speed are obviously slow.

In this respect, Shanghai, a large life insurance company marketing director of China Wealth June said. As an example of AIA, a wholly foreign-owned life insurance company, although it has been known for its soundness, after 2008, AIA's AIG group, after the global financial crisis, has formed an AIA listing in Hong Kong and become a listed insurance company in Hong Kong. But as the first foreign insurance company to enter the Chinese market, AIA's style of operation has been subject to various policy restrictions, the number of branch offices has not increased over the years. Although AIA has been the leader in the development of foreign life insurance companies, but compared with Chinese life insurance, regardless of its premium size or the number of marketers are difficult to compare.

This has become an AIA's "heart headache" for many years.

Share transfer drama or will be staged The news that the insurance industry is fully open is certainly positive for AIA. This means that AIA will no longer be subject to more restrictions on the opening of its subsidiaries, but the expansion of its subsidiaries will mean an increase in capital spending, which, in terms of cost-spending, will take time and region into account if future AIA expands aggressively.

"April 17, a senior executive in AIA China, who declined to be named, said.

But for more of the joint ventures already operating in the market, it remains to be seen whether the foreign shareholders will increase the shareholding ratio of the joint venture company or even raise the tide of unilateral increase of capital. Chinese wealth June also learned that at the briefing held by the State Council press office at the beginning of November 2017, the "timetable" for the opening up of the insurance industry was revealed, and the proportion of investment by single or multiple foreign investors in the insurance business would be relaxed to 51% after 3 years, and the investment ratio would be unrestricted after 5 years.

At this year's Boao Forum, Yi Gang, the central bank governor, shortened it to 3 years. "This is a more comprehensive, more in-depth opening, is a winning open." On the one hand, China's insurance industry has a certain basis. Since 2010, the total amount of insurance assets exceeded 5 trillion yuan, by the end of February this year, the total assets of the insurance industry amounted to 16.8 trillion yuan, the annual growth rate of two digits, China has entered the ranks of insurance companies;

Wang Yuejin, director of the Insurance Research Center at Beijing Industrial and Commercial University, said. China's insurance industry has reached the second largest in the world in July 2017, according to the "2016-2017 Insurance risk Management white paper" published by Ernst and the world's four accounting firms.

2017 Fortune magazine World Top 500 enterprises, the world's 57 insurance companies on the list, including China Ping ' An, Guo Shou group, PICC Group, Pacific Insurance Group, Xinhua life, etc. in the list. In the eyes of the industry, China's insurance industry is already large enough, but in the light of the density and depth of the global insurance industry, as well as the base of China's 1.4 billion total population, the volume of China's insurance industry is still far from the world average, the greater openness released by the state will inevitably bring the new pattern of competition and common development

There is no less chance of foreign investment.

Source: Huaxia Times 2018-04-21