The Chinese Insurance Market

Transcription

1 The Chinese Insurance Market Asia-Pacific January to March 2012 Issue 20 (January to March 2012) Welcome to Issue 20 of the China Newsletter, covering developments in the Chinese insurance market in the first quarter of This quarter has witnessed the entrance of more regional insurance players such as Qianhai Life and North Gulf P&C insurance. Headquartered in provincial cities, they are allowed to run their businesses within that province for the first 2 years. They may subsequently be permitted to expand nationally. The companies are typically sponsored by leading provincial entities. This continues the trend started when the China Insurance Regulatory Commission ( CIRC ) looked to establish provincial / regional based insurance companies in Market players are seeking further cooperation between life insurance companies and non-life insurance companies to explore opportunities to grow. China Life has signed a framework agreement on insurance sales business with its property and casualty arm to sell specified products within authorized regions. The strategic cooperation between Union Life and Tianping auto insurance company reflects similar business objectives. Regulatory changes continue to impact the industry. CIRC issued new measures on life and non-life insurance contracts and premium rates to further improve the management of insurance companies. The regulator claimed that it will focus more on how to improve the industry s image, strengthen risk control and increase overall insurance services in CIRC released a notice regarding life insurance companies annual Enterprise Risk Management ( ERM ) reporting framework in order to improve the quality of disclosure of ERM for insurance companies to the board of directors and regulatory authorities. This notice is supplementary to the original ERM regulation issued by CIRC in We hope you continue to find this Newsletter interesting and informative. We would particularly like to receive your feedback on how we can improve this Newsletter over time to increase its value to you. Towers Watson Risk Consulting and Software, China In this issue Industry statistics Market update New entrants Potential entrants Expansion and capital injection Corporate developments Regulatory update CIRC clarifies life insurance contracts and premium rates Notice of Life Insurance Companies Annual Enterprise Risk Management ( ERM ) reporting framework and risk monitoring index CIRC to further standardize employee incentive policy in for insurance intermediaries CIRC lowers the regulatory monitoring fee China Insurance Association releases model terms for commercial auto insurance CIRC releases Reserving Criterion for non-life insurance Compulsory traffic accident liability insurance market is open to foreign insurers A preliminary judicial interpretation on compensation to victims of traffic accidents has been publicized CIRC released releases "Notice on Strengthening the Management of Commercial Auto Insurance Terms and Rates" Distribution Agency firms and insurance brokers Insurance assessment institutions Products Personnel changes Contacts towerswatson.com 1

2 Industry statistics January to February 2012 From 2011, CIRC started to publish premium income under China GAAP accounting standards whereby premiums received in respect of policies which are deemed to be non-insurance products are excluded. Figures in this sector are under China GAAP. The Chinese insurance industry generated gross written premiums of RMB billion from January to February in 2012, up 10% compared with the same period last year, according to the CIRC. The contribution of life premiums was RMB billion, up 4% compared with the corresponding period in The balance of premium income came from non-life insurance (RMB 81.8 billion) and personal accident and health (RMB 19.4 billion) up 26% and 31% year-on-year respectively. Life insurers The total life premium income collected by domestic life insurance companies for the first two months of 2012 was RMB billion, a slight increase of 3% compared with the same period last year, accounting for 97% of the total life premium. Most major domestic insurers have reported positive growth in the first two months this year except for China Life and Taikang. China Life reported a 6% decrease in premium income, standing at RMB 80.7 billion. Taikang reported premium income of RMB 15.9 billion, down 5% compared with the same period last year. Ping An remained in second position with premium income of RMB 37.0 billion, a year-on-year growth rate of 12%. New China Life also reported an increase of 18% in premium revenues and stood at RMB 24.0 billion, while China Pacific Life had similar premium revenues as last year of around RMB 22.0 billion. Among the next tier domestic players PICC Group (life and health) reported a 2% year-on-year increase with premium revenue standing at RMB 20.3 billion. Taiping (life and pension combined) reported an increase of 12% in premium and stood at RMB 7.5 billion. For other domestic insurers, China Post Life has expanded aggressively in the first two months of this year, with RMB 4.6 billion premium income, up 330% compared with the same period last year. Foreign life companies generated premium income of RMB 7.2 billion in the first two months this year, almost the same amount as the corresponding period last year. Around half of the foreign companies reported a positive increase. Although AIA took the first position among foreign insurers, it showed a 2% decrease in premium at RMB1.1 billion. Generali China Life, which ranked second, showed a 58% increase to RMB 1.0 billion. Huatai Life took the third position among foreign insurers with 12% decrease and stood at RMB 0.7 billion. Aviva-COFCO and Sino US United MetLife achieved RMB 0.7 billion and RMB 0.6 billion in premium revenues respectively in the first two months this year. Non-life insurers Domestic non-life insurers gross premium income increased by 15% and stood at RMB 83.8 billion from January to February this year. Foreign companies gross premium income reached RMB 1.1 billion, up 15% compared with the same period last year. PICC Property & Casualty Insurance (RMB 29.9 billion), Ping An Property & Casualty Insurance (RMB 15.6 billion), and China Pacific Property Insurance (RMB 11.0 billion) remained the top three non-life insurers, with 66% market share in terms of premium income by the end of February this year. These three insurers achieved premium growth of 10%, 19%, and 11% respectively. Chartis Insurance Company China Limited (formally AIU) remained the top foreign non-life insurer, with premium income of RMB 0.2 billion in the first two months this year. This is a 10% increase compared with the same period last year. Compulsory traffic accident liability insurance market is to open to foreign insurers according to the Joint Fact Sheet on Strengthening US-China Economic Relations released on 15 February. Market update New entrants Qianhai Life Insurance has been approved by CIRC to open with registered capital of RMB 1 billion. It is funded by 6 domestic companies including Guangzhou Libai Enterprise Group. The company is based in Shenzhen. Potential entrants ERGO Insurance Group and Shandong State-owned Assets Investment Holding Company have been approved by CIRC to set up a joint venture insurance company. The head office of the new company will be located in Jinan, the capital of Shandong Province, with registered capital of RMB 0.6 billion. North Gulf P&C Insurance Company based in Nanning, Guangxi Province has been approved by CIRC with registered capital of RMB 0.6 billion. It is funded by 12 companies including Guangxi Financial Investment Group Company. Expansion and capital injection The latest approvals for the opening of new provincial/city branches for both domestic and foreign companies are as follows: Life and health insurance companies CCB life Manulife-Sinochem Life Non-life insurance companies Allianz China General Insurance Fubon P&C Insurance Company Branch Shandong Dalian Branch Shanghai Chongqing towerswatson.com 2

3 The following insurance companies have received approval from the CIRC to make capital injections in the first quarter of Accumulated registered capital is listed as follows: Insurance companies Registered capital (RMB billion) Aeon Life China Life Re HengAn Standard Life Kunlun Health New China Life Old Mutual-Guodian PICC Life Alltrust Property Bohai Property China United LIG P&C Insurance Liberty Mutual Insurance PICC Health PICC P&C Corporate developments Anbang P&C Insurance Company has been approved by CIRC to officially open up with registered capital of RMB 5.1 billion. The company is based in Beijing. It is funded by An-Bang Insurance Group. Ancheng Property & Casualty Insurance has been permitted to issue an additional 0.5 billion common stock. Chongqing City Construction Investment Group, Co. and Chongqing Yufu Asset Management Group have separately subscribed 0.1 billon shares, International Finance Co. has subscribed the remaining 0.3 billion shares. AnXin Agricultural Insurance Co. and Shanghai Civil Affairs Bureau have signed a cooperation memo, where both sides will work together on service network sharing, professional technical cooperation, rescue methods innovation, etc., to improve and provide social assistance and disaster compensation in a more timely manner, more efficiently and according to a defined set of rules and principles. Changjiang Pension has been approved by CIRC to invest in the CPIC-Shanghai Public Rental Program, which was set up by China Pacific Asset Management Company, with expected capital of RMB 4 billion. Changjiang Pension was expected to receive a RMB 400 million quota, and has reportedly 7-10 clients. China Life plans to issue up to a further RMB 38 billion in subordinated debt in 2012 to boost its solvency ratio by 50%. This follows investment losses in 2011 (China Life issued RMB 30 billion subordinated debt in 2011). China Life has signed a framework agreement with its property and casualty arm to sell specified insurance products within authorized regions. China Life P&C would pay commission fees limited to RMB 660 million, RMB 800 million, RMB 960 million from 2012 to 2014 respectively. CIRC has approved 9 insurance intermediaries to operate online, including CNInsure s subsidiary Baowang ( According to the regulation, the online insurance intermediaries have to be national companies, and their employees cannot personally sell products. CPIC Group and its subsidiary China Pacific Asset Management Company purchased a 2.7% shareholding in Shanghai Pudong Development Bank ( SPDB ) from Citibank, at a total price of RMB 4.2 billion, averaging at RMB 8.33 per share. As a result of the deal, Citibank no longer holds shares in SPDB. CPIC P&C Insurance Company has signed an insurance agreement with The Walt Disney Company. According to the agreement, CPIC will provide insurance coverage for the principal part of the Shanghai Disneyland project with an insurance amount of RMB 18.6 billion, amounting to a 37% share. This is the second time CPIC has underwritten insurance for the Shanghai Disneyland project. CPIC P&C Insurance Company has initiated a plan for its automobile insurance claims settlement staff to take the standardized occupational skill evaluation test. CPIC P&C Insurance Company has committed that all claims adjusters will be qualified through certification in the next three years. Dazhong Insurance Company has signed a comprehensive cooperative agreement with SPDB to explore ways to cooperate, including co-research and coservices between insurance company and bank. Biocause Pharmaceutical Group plans to inject RMB 120 million into Guohua Life, which is expected to issue up to 600 million shares with RMB 1 per share. After the injection, Biocause would hold 20% of Guohua s registered capital. China National Travel Service Group plans to sell 100 million shares in Happy Life Insurance Company for RMB 170 million. Pending approval from CIRC, Founder Group plans to take over some of Haier Investment and Development s (HI&D) stake in Haier Meiji Yasuda Life. Founder s purchase will reduce HI&D s 70.76% stake in the life company to less than 50%. Liberty Insurance Company (China) has launched a new claim service named zero invoice. According to the terms, it is unnecessary for a car owner to provide any materials with their signature, if the claim payment for single-side automobile accidents is no more than RMB 15,000. The nationwide service comes into effect from 1st March, New China Life is planning to issue up to RMB 15 billion bonds to boost its solvency adequacy ratio during It would issue up to RMB 10 billion subordinated debt with a maturity period of 5 years and a callable option at the end of the 5th year. In addition, the firm will issue RMB 5 billion hybrid capital securities of 10 years tenure, which generally rank below subordinated debt but above equity capital in terms of repayment in the event of liquidation. The Industrial Bank has announced it will raise RMB billion from PICC Asset Management Company. After the issue, PICC Asset Management Company will hold 10.92% of Industrial Bank s shares, the same percentage as Hang Seng Bank of Hong Kong, becoming the joint second largest shareholders of the bank. Copyright 2012 Towers Watson. All rights reserved. towerswatson.com 3

4 PICC Health and Beijing Friendship Hospital, affiliated to Capital Medicine University, have signed a strategic partnership agreement to cooperate in health care, actuarial data support, exclusive product development and health management. PICC P&C has signed a strategic cooperation agreement with Shanghai Shipping Exchange. According to the agreement, they will establish an insurance cooperation relationship for the shipping business PICC P&C has signed a cooperation agreement with Financial Insurance Company Limited, belonging to Genworth Financial Inc. Both companies will work together to develop an insurance product to cover the risk that an individual cannot repay a loan due to involuntary unemployment and other adverse events. PICC P&C recently launched a mobile access service Palmtop PICC to expand its range of services. The service includes a nationwide free rescue service for damaged vehicles, E-service for survey and claims settlement, referral to a high-quality car-dealer/servicer, express claims service, claims noticing service within one hour for losses under RMB 10,000, and websites for everywhere service. Ping An plans to issue up to RMB 26 billion of convertible bonds, with a maturity period of 6 years, and coupon rate no more than 3%. The issuance is expected to be completed in the third quarter 2012, after approval by CIRC and CSRC. Sunlife-Everbright Asset company has been approved by CIRC to open with registered capital of RMB100 million. The company is funded by Sunlife-Everbright and China Everbright Group, and will be based in Beijing. Sunshine Life Insurance Company and Beijing Home Link Company have signed a strategic partnership agreement to cooperate in insurance, wealth management and asset management. Sunshine Life Insurance Company has changed its registered location from Beijing to Sanya, Hainan province. Union Life Insurance Company and Tianping Auto Insurance Company have been approved by CIRC to start cross-selling insurance products, although they can only do business within authorized regions. Winterthur Insurance (Asia) Ltd., a member of the AXA Group has been approved by CIRC to run business focused on art insurance in China. This will include insurance for private and public collections of works of art, exhibitions and art transportation insurance. The company also has indicated it will look to provide a third-party works of art valuation and validation service. YingDa Taihe Property Insurance Co. has signed a strategic cooperation agreement with DongFeng Motor Co.Ltd. According to the agreement, DongFeng Motor Co. will provide auto insurance from YingDa Taihe as customers gifts, and open all renewal business by its agents and service stations to YingDa Taihe. Meanwhile, YingDa Taihe will expand its claims service network based on DongFeng Motor s national service stations. This cooperation will start with the HuBei branch as a pilot to explore the cooperation pattern. YongAn Insurance has successfully underwritten engineering insurance covering several buildings in Shanghai Bund Financial Center Project. YongAn insurance has signed a comprehensive agreement with Everbright Financial Leasing Ltd., in Nanjing. The agreement covers cooperation in the fields of P&C insurance, especially the underwriting of risk covering large-scale construction machinery. Regulatory update CIRC clarifies life insurance contracts and premium rates To further standardize insurance contracts and premium rate management and align with measures published at the end of 2011, CIRC provided further guidance: Endowment insurance should have an insured period of at least 5 years; the first survival benefit should come into effect after the 3rd policy year; the death benefit for unit linked and universal endowment products should not be lower than 105% of paid premium or 105% of account value; and term insurance should cover death through both illness and accidental causes; Life insurance companies are not allowed to develop endowment products for group clients; Annuity products should provide death benefit and total disability benefit, while the death benefit should be no more than the greater of the premium paid and the cash value; The persistency bonus for unit linked and universal products can be paid out if one of the following conditions is met: the first bonus is later than the 5th policy year if it equals a percentage of account value, paid premium or single premium; the first bonus is later than the 2nd premium paying period if it equals a percentage no greater than 2% of premium paid during that period. Notice of Life Insurance Companies Annual Enterprise Risk Management ( ERM ) reporting framework and risk monitoring index CIRC released a notice on the life insurance companies annual ERM reporting framework and risk monitoring indicators in order to standardize ERM reporting and improve the quality of disclosure of risk management for insurance companies to the board of directors and the regulatory agency. The notice includes the following requirements: All life insurance and health insurance companies should closely follow the notice of life insurance companies ERM implementation guide released at the end of The report should be submitted by 30 April each year; Copyright 2012 Towers Watson. All rights reserved. towerswatson.com 4

5 The risk monitoring indicators for annual and first quarter reports can be submitted at the same time. For other quarters, the risk indicator reports should be submitted no later than 15 working days after the end of that quarter; Pension companies should follow this same notice and notify CIRC of the sections that are not applicable to their business. CIRC to further standardize employee incentive policy for insurance intermediaries In order to further standardize the employee incentive policy for insurance intermediaries, CIRC released the following new rules: Insurance intermediaries should closely follow the rules on standardization of insurance intermediary employee incentive policy released in 2010 to set up equity incentive plans; they should not simply link incentive plans with an initial public offering ( IPO ) and exaggerate the benefits of the IPO; they should not induce people to be sales persons against their will; they should not encourage employees or customers to purchase products unsuitable for their needs; The regulatory agency will pay special attention to organizations where IPO plans are linked with equity incentive plans and whose business development and organizational structure are unusual, to ensure the companies fulfill their risk management requirements. CIRC lowers the regulatory monitoring fee CIRC released a notice to adjust the new regulatory monitoring fee schedule for organizations conducting insurance business. According to the notice, CIRC will lower the fees collected from insurance companies and insurance intermediaries: Regulatory fees for liability insurance and short-term health insurance business provided by insurance companies will be lowered from 0.16% to 0.13% of the company s insurance premium; and for asset insurance and accident insurance business, the fee will be cut from 0.17% to 0.145% of the premium; Regulatory fees for long-term life insurance will be decreased from 0.09% to 0.075% of premium; and for long-term health insurance, the fee will be cut from 0.08% to 0.065%; Regulatory fees for 2012 and 2013 will decrease by around 10% each year based on the above figures. China Insurance Association releases model terms for commercial auto insurance In order to further standardize the commercial auto insurance terms, China Insurance Association issued the following: Model terms should clearly define that the amount of insurance be set according to the actual value of the vehicle. For accident damage due to a third party, the insurance companies can pay the insured first, and then seek compensation from the third-party. Model terms should extend the insurance coverage, reduce the range of disclaimers, to improve auto insurance protection capability. Insurance companies should strengthen the accuracy of claims notification, simplify the material needed for claims, and enhance the level of auto insurance services. Insurance companies should simplify their products and features, and optimize policy terms and conditions in order to help customers better understand the policies. CIRC releases Reserving Criterion for nonlife insurance CIRC released the Criterion for the Internal Control of Reserve Data, Evaluation and Accounting for Non-Life Insurance on 1 March, which urged companies to strengthen the internal controls for reserve assessment, to improve the adequacy and the reasonableness of their reserves. Compulsory traffic accident liability insurance market is open to foreign insurers According to the Joint Fact Sheet on Strengthening US- China Economic Relations released 15 February 2012, China has agreed to open up its Compulsory traffic accident liability insurance market to foreign insurance companies. A preliminary judicial interpretation on compensation to victims of traffic accidents has been publicized The Supreme People's Court publicized a preliminary judicial interpretation on compensation for victims of traffic accidents. The interpretation has made it clear that the insurance company has the responsibility to pay the victims within the sum insured of the compulsory third party liability insurance, even if the insured is found to have been driving while under the influence of alcohol, using drugs or driving without a license. Insurance companies retain the right to recover losses from the insured. CIRC releases "Notice on Strengthening the Management of Commercial Auto Insurance Terms and Rates" CIRC released a "Notice on Strengthening the Management of Commercial Auto Insurance Terms and Rates" on 8 March. According to the notice, the qualified insurance companies can develop their own terms and premium rates for commercial auto insurance based on their own market data. The detailed qualifications include: Insurers must operate a commercial auto insurance business with good corporate governance and internal control for at least three years; Copyright 2012 Towers Watson. All rights reserved. towerswatson.com 5

6 Insurers combined ratio must be below 100% for the last two, consecutive years ; Insurers post-audit solvency margin ratio should be above 150% for the last two, consecutive years ; Underwriting capacity of insurers should cover over 300,000 cars; and Insurers should set up a specialized commercial auto insurance product development team, management staff should be familiar with the law and auto insurance pricing practice, and the firm should establish improved business processes and IT systems. The new rules also stipulated that the premium rates set by insurers should not exceed 35% of base premiums laid down in general. Different additional rates may be cited by insurers, however, depending on the distribution channel. Distribution Business written by insurance intermediaries (including insurance agency firms, insurance brokers and insurance assessment institutions) reached RMB 91.0 billion by the end of the fourth quarter of Insurance intermediaries operational income amounted to RMB 15.1 billion, up 26.37% compared with the corresponding period for Insurance agency firms Insurance agency firms generated total premium income of RMB 53.0 billion in Life business accounted for 27% and non-life insurance the remaining 73%. The operational income from insurance agency firms reached RMB 8.2 billion in Life business contributed RMB 2.8 billion, and non-life insurance RMB 5.3 billion. Insurance brokers The premium income from insurance brokers reached RMB 38.0 billion in Life business contributed RMB 6.2 billion, non-life insurance RMB 30.7 billion and reinsurance business RMB 1.1 billion. The operational income from insurance brokers reached RMB 5.5 billion in Life business contributed RMB 0.7 billion, non-life insurance RMB 4.2 billion, reinsurance business RMB 0.1 billion and consultant business RMB 0.5 billion. Insurance assessment institutions Insurance assessment institutions generated operational income of RMB1.4 billion in 2011, up 12.2% compared with Life business accounted for 1%, non-life insurance accounted for 94%, and other business accounted for 5%. Source: CIRC Website. Products Aegon-CNOOC has launched a participating endowment product. A cash dividend will be paid yearly and could be deposited with interest. The policyholder will receive the total premiums paid as the maturity benefit. The policyholder will also receive survival benefit of 10% basic sum assured, starting from the 3 rd policy year, and the percentage will increase to 20% after 11 th year and 30% after 21 st year respectively. Apart from receiving 105% of paid-premiums as death (or TPD) benefit, the policyholder who has already attained 18 years of age at policy issue, will receive extra benefits amounting to 10 times, 20 times and 30 times of the sum assured for public transport accidents by land, marine or air causes, respectively. Cathay Life has launched a participating annuity product with a maximum benefit of RMB 2 million. Starting from the first year, the policyholder can receive an annuity of 5% of the sum assured, and the percentage will increase to 10% after they retire. The policyholder will also receive all premiums paid, upon retirement, and 100% of the sum assured on reaching their 99th birthday. Cathay Life has launched a health product targeting elder people aged from 50 to 75. With an annual premium of RMB 500 per unit of insurance, it covers five main benefits: RMB 100,000 for death or first-class disability, up to RMB 5,000 for accident medical costs, RMB 100 for daily hospital costs resulting from an accident, up to RMB 10,000 for fracture accidents, and up to RMB 10,000 for accidental dislocation surgery. Copyright 2012 Towers Watson. All rights reserved. towerswatson.com 6

7 CITIC-Prudential has launched a participating annuity product, through the bank channel, targeting wealthy clients. A cash dividend will be paid yearly and could be deposited with interest. Starting from the first year, policyholders can receive an immediate annuity of 10% of the sum assured, and the percentage will increase to 15% from the policyholder s 60th birthday until they reach 99 years old. Apart from the immediate annuity, policyholders will receive an additional 10%, 20%, 20%, 30% and 30% of the sum assured at their 60th, 70th, 80th, 90th and 100th birthday, respectively. Policyholders paying an annual premium higher than RMB 6,000 will enjoy global emergency medical services. DaZhong Insurance Company has established a cooperation agreement with Jinzhong Information & Technology Company to launch a new comprehensivecover policy named Carefree Housekeeper. This product will be sold through intelligent automated teller terminals. ING-BOB Life has launched a comprehensive insurance protection policy for women. It covers 31 critical illnesses, including some specific to women. The highlight is product Version A which covers pregnancy and fertility costs for mothers, and illness in new infants. The policyholders will receive a maturity benefit of the sum assured at their 70th birthday. The insured will receive 90% of accident related medical costs in excess of RMB 100, without limit on the number of times claimed or medicine usage, as well as an allowance for hospitalization and surgery. There are other versions of the product available, but these have similar features to other products already in the market. LiAn Life has launched the first participating marriage insurance policy in Jiangsu province. 99.9% of the sum assured will be paid at different wedding anniversaries, including silver wedding, and golden wedding. The policy also pays 9% of the sum assured each year after retirement. In case of divorce, survival benefits will be attributed to the wife. Sunshine Life and Beijing Red Cross 999 Emergency Center have cooperated to launch an accident product, targeting all holders of Beijing public transportation cards who are aged from 18 to 65. With an annual premium of RMB 100, the policyholders can receive up to RMB1 million accidental death benefit and RMB 5,000 for accident or emergency illness medical costs. Taikang Life has launched a high-end medical product targeting children aged from 0 to 12. It covers 18 kinds of critical illnesses with a maximum benefit of RMB 200,000 per annual premium of RMB 400. If renewed, policyholders can receive the benefit payment without 90 days waiting period. This product is sold online without medical examination. Personnel changes Chen Liang ( 陈 良 ) has been appointed the General Manager of Allianz China Life. Dai Shuyan ( 戴 曙 燕 ) has been appointed the Chief Actuary of Jintai Property and Casualty Insurance. Ding Xin Min ( 丁 新 民 ) has been appointed Chairman of the Board of Ping An Life. Fan Xiaoqing ( 范 小 清 ) has been appointed Chairman of the Board of Tian An Insurance. Harpal Karlcut has been appointed Chairman of the Board of HSBC Life. He Ming ( 贺 明 ) has been appointed the General Manager of Anbang Asset Management. Ito Yukitaka ( 伊 藤 幸 孝 )has was named Chairman of the Board and General Manager of Mitsui Sumitomo Insurance (China) Company. John Joseph Carey has been named Chairman of the Board of Chartis Insurance. Kevin Michael Goulding has been appointed the General Manager of Chartis Insurance. Liu Yong ( 刘 勇 ) has been named Chief Actuary of Tian An Life. Liu Zhi Jian ( 柳 志 坚 ) has been appointed the General Manager of Ping An Life. He replaced Ding Xin Min who has been appointed Chairman of the Board of Ping An Life. Michel M. Liès has been appointed as the Chief Executive Officer of Swiss Re Group. Moses Ojeisekhoba will serve as the Chief Executive Officer as well as President of Swiss Re Asia. Sammy Sum Yu Chan ( 陈 森 如 ) has been appointed the General Manager of Alltrust Insurance. Shen Cheng Fang( 沈 成 方 ) has been named Chief Actuary of Qian Hai Life. Shi Fuliang ( 石 福 梁 ) has been named General Manager of Urtrust Insurance. Stuart Purdy has been named Chairman of the Board of Royal & Sun Alliance (China) Insurance. Xu Lei ( 许 雷 ) has been named Chairman of the Board of Chengtai P&C Insurance. Yang Fan ( 杨 帆 ) has been appointed the General Manager of Taikang Pension. Zeng Song Bai ( 曾 松 柏 ) has been named Chief Actuary of Sino-Conflux Insurance Company. Zhang Feng ( 张 峰 ) has been named General Manager of Anbang Property & Casualty Insurance. Zhang Xingren ( 张 兴 任 ) has been named Chairman of the Board of Dazhong Insurance. Zong Guofu ( 宗 国 富 ) has been appointed the General Manager of Groupama Insurance (China). Copyright 2012 Towers Watson. All rights reserved. towerswatson.com 7

8 Contact details Towers Watson s Risk Consulting and Software business in China is based in Shanghai and Beijing. Please contact Adrian Liu, Michael Ross and Wesley Cui for life insurance, Jenny Lai for non-life insurance and Steve Kean for distribution consulting. Adrian Liu General Manager, Life Insurance Consulting, China Jenny Lai Director, Property and Casualty Insurance Consulting, China Steve Kean Director - Products, Distribution and Markets, Asia Pacific Michael Ross Director, Life Insurance Consulting, Greater China Wesley Cui Director, Life Insurance Consulting, China Beijing 29/F Floor, Kerry Centre South Tower 1 Guang Hua Road Chaoyang District Beijing, , China Tel: (8610) Fax: (8610) Shanghai 11/F Floor, Kerry Centre 1515 West Nanjing Road Shanghai, , China Tel: (8621) Fax: (8621) s: adrian.liu@towerswatson.com jenny.lai@towerswatson.com steve.kean@towerswatson.com michael.ross@towerswatson.com wesley.cui@towerswatson.com Towers Watson is present in seven locations in Greater China, including Beijing, Shanghai, Shenzhen, Guangzhou, Wuhan, Hong Kong and Taipei. The Chinese Insurance Market newsletter has been prepared by Towers Watson for general information purposes only and does not constitute professional advice. The information, opinions and projections contained in this Newsletter are derived from various sources and have not been independently verified by Towers Watson. If you require professional advice or require any further information please contact any of the above named individuals. Errors and omissions excepted. About Towers Watson Towers Watson is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. With 14,000 associates around the world, we offer solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. towerswatson.com 8