Insurance industry in China
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TheChinese insurance industryhas experienced rapid expansion over the past decade.
In addition to steadily increasing demand, two majorsupply-sidetrends have encouraged the development of the industry: (1) under theWorld Trade Organization(WTO) framework, the Chinese government lowered entry barriers to foreign insurers, allowing them to establishjoint-ventureinsurance firms in China; and (2) domestic insurers strengthened themselves throughinitial public offeringsand other market developments. (For example,China Life Insuranceat one point became the second largest insurance company in the world in terms ofmarket capitalizationalthough the value has kept declining since the stock market peak of 2008.)
As of 2007, China had 100insurance companies,59 of which are domestic-funded and the rest 41 are foreign-funded. And five Chinese insurance companies including thePeople's Insurance Company of China,China Life Insurance,Ping An InsuranceCompany of China,China Insurance International Holdings Co., Ltd.(CIIH) andChina Pacific Insurancehave listed at home and abroad.
China Life Insurance had about a 50% share of the life insurance market; Ping An Life Insurance and Ping An Property Insurance share 16% and 12% of corresponding insurance markets, respectively ranking 2nd and 3rd.
Chinese insurers namely China Insurance International Holdings, China Life Insurance, Ping An Insurance, People's Insurance Company of China and China Pacific Insurance were the first wave of insurers to go public. In December 2011, New China Life began a second wave of IPOs for smaller tier 2 insurers.[1]
In Jan-May 2007, the increased insurance assets reached RMB 450 billion, without calculation the value-added of substantive financial assets. At present, the gross assets of China Life Insurance have outnumbered RMB 1 trillion. And the total capital of the whole insurance industry has exceeded RMB 200 billion, 5.6 times that of 2002.
During the first three quarters of 2009 China's insurance companies had generated profits 36.9 billion RMB of which the seven largest insurers accounted for 90% of these profits.
Despite all this growth the industry is still considered in its infancy stage when looking at China's insurance penetration compared to its peers in the rest ofGreater ChinaandAsia.[2][3]
Organizations[edit]
- Insurance Association of China (IAC)
The IAC represents the collective interests of China's insurance industry. The Association speaks out on issues of common interest; helps to inform and participate in debates onpublic policyissues; and also acts as an advocate for high standards ofcustomer servicein the insurance industry. IAC has fourworking committeeswhich are Life Insurance Working Committee, General Insurance Working Committee, Insurance Agency & Broker Working Committee, Actuarial Working Committee.
- The Insurance Institute of China (IIC)
The IIC is the nationwide academic association for research andpolicy analysisin insurance industry. It offers two publications:Insurance Information(Biweekly) andInsurance Studies(Monthly)
List[edit]
This is an incomplete list of insurance companies in China.
- China Taiping Insurance Holdings(formerly China Insurance International Holdings)
- China Life Insurance Company
- China Pacific Insurance Company
- People's Insurance Company of China(includingPICC Property and Casualty)
- Ping An Insurance
- China Re
- Minsheng Life Insurance
- New China Life Insurance
- Anbang
- Huaxia Life Insurance
- Taikang Life Insurance
- Tianan Insurance
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See also[edit]
References[edit]
- ^New China Life Plan's Dual IPO, Financial Times, Aug. 2011
- ^China's Insurance Market: Lessons Learned from Taiwan,bySam Radwan,Bloomberg Businessweek, June 2010
- ^"Insurance in China: Growing Pains",Sam Radwan's quote inThe Economist,December 2011
