The Chinese Insurance Market Asia-Pacific January to March 2011

Transcription

1 The Chinese Insurance Market Asia-Pacific January to March 2011 Issue 16 (January to March 2011) Welcome to Issue 16 of the China Newsletter, covering developments in the Chinese insurance market in the first quarter of This quarter has seen two major shareholding changes. AXA has received approval from the China Insurance Regulatory Commission ( CIRC ) to sell its stake in Taikang Life to buyers including Goldman Sachs. Following the deal, Goldman Sachs will become the second largest shareholder of Taikang Life with 102 million shares or a stake of 12.02%. CIRC has also approved New York Life to equally transfer its equity stake in Haier New York Life to Haier Group and Meiji Yasuda Life. With additional capital injection after the equity stake transfer, Haier Group now owns 70.76% shares of the venture, and Meiji Yasuda Life the remaining 29.24%. Regulatory changes continued to impact the industry. The CIRC and the China Banking Regulatory Commission ( CBRC ) jointly released guidelines to clarify the qualifications and responsibilities for commercial banks and insurers undertaking bancassurance business. Key regulations include prudently choosing partners, entering into cooperation agreements to clarify responsibilities and liabilities, limiting sales qualifications to bank staff only, and strengthening supervision on sales conduct. In addition, the CIRC released interim rules on transferring part or all of insurance operations. The rules set out requirements on the qualifications of the transferee, including solvency and operational capabilities, and require due diligence be performed before the transfer. 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 Potential entrants Expansion and capital injection Regulatory update CIRC set out 2011 work plan CIRC and CBRC to jointly regulate bancassurance activity CIRC s Interim rules on transferring part or all of insurance operations CIRC to allow investment in construction and management of government- subsidised housing CIRC banned insurers providing thirdparty guarantees for other companies debt CIRC sets solvency stress testing scenario Distribution Agency Bancassurance Agency companies and insurance brokers Products Personnel changes Contacts Copyright 2011 Towers Watson. All rights reserved. towerswatson.com 1

2 Industry statistics January to February 2011 The Chinese insurance industry generated gross written premiums of RMB billion from January to February in 2011, up 3% compared with the same period last year, according to the CIRC. The contribution of life premiums was RMB billion, up 1% compared with the corresponding period in The balance of premium income came from non-life insurance (RMB 71.2 billion) and personal accident and health (RMB 15.9 billion) up 9% and 7% year-on-year respectively. Life insurers Domestic life insurers gross premium income grew by 3% to RMB billion from January to February in 2011, accounting for 97% of total life premiums received nationally. Most major domestic insurers have reported negative growth in the first two months this year except for China Life and CPIC. China Life reported a 9% increase in premium income, standing at RMB 84.6 billion. CPIC regained third position with premium income of RMB 21.9 billion, up 7% compared with the same period in the last year. Although Ping An Life reported a 13% decrease, it remains the second largest life insurer with premium income of RMB 32.1 billion. New China Life and Taikang Life reported 7% and 19% decrease in premium revenues and stood at RMB 20.4 billion and RMB 16.7 billion respectively. Among the next tier domestic players PICC Life reported a 7% year-on-year increase with premium revenue standing at RMB 19.0 billion while PICC Health decreased 53% with premium income standing at RMB 1.0 billion. Taiping Life reported a decrease of 14% in premium income to RMB 6.6 billon. For other domestic insurers, both Sino Life and Union Life have grown sharply in the first two months of this year, with RMB 6.0 billion and RMB 3.3 billion premium income, up 187% and 132% respectively. Foreign companies generated gross premium income of RMB 7.3 billion in the first two months this year, down 33% compared with the corresponding period last year. A few large foreign players experienced negative growth in the first two month this year. AIA remains first among the foreign insurers, showed a 6% decrease in premium income at RMB 1.2 billion. Huatai Life has the second position among the foreign insurers with 42% decrease in premium incomre at RMB 0.8 billion. Generali China Life reported a 70% decrease to RMB 0.6 billion. On the other hand, AXA- Minmetals and CIGNC-CMC achieved a year-on-year growth of 109% and 138% respectively in premium revenues to RMB 0.3 billion and RMB 0.4 billion respectively in the first two months this year. Non-life insurers Domestic non-life insurers gross premium income increased by 9% and stood at RMB 72.7 billion from January to February this year. Foreign companies gross premium income reached RMB 0.9 billion, up 24% compared with the same period last year. PICC Property & Casualty Insurance (RMB 27.2 billion), Ping An Property & Casualty Insurance (RMB 13.1 billion), and China Pacific Property Insurance (RMB 9.9 billion) remained the top three non-life insurers, with 68% market share in terms of premium income at the end of February this year. These three insurers achieved premium growth of 3%, 29%, and 5% respectively. Chartis Insurance Company China Limited remained the top foreign non-life insurer, with premium income of RMB 0.2 billion in the first two months of this year. This is a 7% increase compared with the same period last year. January to December 2010 The Chinese insurance industry generated gross written premiums of RMB 1,452.8 billion for the 12 months to December 2010, up 30% compared with the same period in 2009, according to the CIRC. The contribution of life premiums was RMB 968 billion, up 30% compared with the corresponding period in The balance of premium income came from non-life insurance (RMB billion) and personal accident and health (RMB 95.3 billion) up 35% and 19% year-on-year respectively. Domestic life insurers gross premium income grew by 28% to RMB billion in 2010, accounting for 94% of total life premiums received nationally. Foreign life insurers total premium increased by 39% to RMB 59.1 billion. Domestic and foreign non-life insurers reported gross premium income of RMB billion and RMB 4.3 billion respectively in 2010, both up 35% compared with the same period in Market update Potential entrants Hongkang Life Insurance Company Limited has been approved by the CIRC to start preparation with registered capital of RMB 0.3 billion. The company, registered in Beijing, is funded by 8 domestic companies including China North Optical-Electrical Technology Co., Ltd. Nine large enterprises including Changsha Zoomlion Heavy Industry Science And Technology Development Co., Ltd. will fund the first local life insurance company, headquartered in Changsha, with registered capital of RMB 1.15 billion. The company proposed name Jixiang Life and is waiting for approval from the CIRC. Copyright 2011 Towers Watson. All rights reserved. towerswatson.com 2

3 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 Great Eastern Nissay-Greatwall CITIC-Prudential General insurance companies Chang An Liability Insurance Hua Tai Property & Casualty Liberty Insurance Branch Shanxi Beijing Liaoning Branch Shanghai Jiangxi Zhejiang The following insurance companies have received approval from the CIRC to make capital injections in the forth quarter of Accumulated registered capital is listed as follows: Insurance companies Registered capital (RMB billion) Anbang Aegon-CNOOC Aviva-COFCO Life Chang An Liability Insurance China Property & Casualty Reinsurance Company Haier Life HengAn Standard Life Huatai Life Minsheng Life PingAn Health Sinatay Life Sino Life Sunshine Group Union Life Zhongrong Life Zurich Insurance (Beijing Branch) Corporate developments Aeon Life has been approved to issue up to RMB 500 million of 10-year subordinated debts. Alltrust Property Insurance Company has partnered with Bupa to take part in the global medical insurance market. Aioi Nissay Dowa Insurance has been cleared to set up a new branch in Hangzhou, Zhejiang Province, under its wholly owned China operation. The branch is planned to commence business in July this year. The 2010 net profit attributable to shareholders of China Life was RMB 33.6 billion, an increase of 2.3% compared with the corresponding period of China Life has signed a strategic agreement with China Merchants Group for business cooperation in life insurance, enterprise annuities, fund management, and equity and bond investment. China Life has invtested RMB 2.29 billion to acquire 50 million new shares from Minsheng Bank. The distributable profit of CPIC Group increased to RMB 8.6 billion in 2010, an increase of 16.3% compared with the corresponding period of CPIC Group is reported to make an investment of RMB 520 million to buy 100 million shares in the unlisted mid-sized lender, Bank of Tianjin. CPIC Group has announced its plan of new issuance of A shares and/or H shares, each with no more than 20% of outstanding A shares and/or H shares. It is estimated that this plan could raise up to RMB 40 billion. The plan has been approved by the Board of CPIC Group but actual size and timing are yet to be confirmed. CPIC Group has received regulatory approval to buy Shanghai Tower for about RMB 4.4 billion. Allianz SE said it has invested an additional USD 855 million of H-shares in CPIC Group by acquiring shares from Carlyle Group. Allianz now holds a total of 240 million H- shares in CPIC Group, representing 2.8% of total outstanding shares. Carlyle sold in total 415 million shares in this deal. After the deal Carlyle reduced its holding to 692 million shares, representing 8.12% of total outstanding shares in CPIC Group. CPIC Property & Casualty Insurance has signed a cooperative agreement with Euler Hermes to help Chinese companies to better manage trade credit risks. Euler Hermes is a credit insurer and a member of Allianz Group. CIRC has approved two corporate shareholders of Eastern Life Insurance to withdraw from the insurer. Upon completion of the deal, Beijing New Auto Group will hold 50 million shares or a 6.25% stake in Eastern Life Insurance and China Tobacco Hunan Industrial Company will own 90 million shares or a 11.15% stake. Eastern Life Insurance, founded in 2001 with registered capital of RMB 800 million, was suspended in August 2004 when its major shareholder Delong Group collapsed. The equity transfer is deemed a signal that Eastern Life is trying to come back to the industry. Ergo Insurance Group said it is taking a moderate expansion step with a life insurance joint venture with a Chinese partner, Shandong State-owned Asset Investment Holding. The venture will be headquartered in Shandong Province, and will commence business as soon as receiving regulatory approval. CIRC has approved New York Life to equally transfer its equity stake in Haier New York Life to Haier Group and Meiji Yasuda Life. With additional capital injection after the equity stake transfer, Haier Group now holds 70.76% shares of the venture, and Meiji Yasuda Life the remaining 29.24%. The new company will be renamed Haier Meiji Yasuda Life Insurance Co., Ltd. with registered capital of RMB 1.18 billion. Copyright 2011 Towers Watson. All rights reserved. towerswatson.com 3

4 Agricultural Bank of China has announced its plan to acquire additional 1.04 billion shares in Jiahe Life to enable a controlling 51% stake. The subscription for new shares will amount to approximately RMB 2.59 billion. The transaction, which gives the bank access to the insurance sector, is subject to the approval of CIRC and CBRC. Xiamen C&D Inc. has been approved by the CIRC to transfer its stake in King Dragon Life Insurance to its parent company Xiamen C&D Corp. Lockton, a US based privately held insurance brokerage firm, has received regulatory approval to open a new branch office in Beijing. The Beijing office will operate as a full-service broker, offering specialist insurance and reinsurance services as well as risk management expertise to Chinese companies. In particular, the Beijing branch will focus on developing professional liability, property & casualty and international insurance in and around Beijing. Following the opening of its Zhejiang Branch in 2010, Liberty Insurance received approval to establish a branch in Guangzhou of Guangdong Province. Zurich Financial Services sold a 5% stake in New China Life and reducing its holding to 15%. China International Capital Corporation and Nomura Securities Co. have agreed to buy a 2.5% stake each. PICC Property & Casualty reported net profit of RMB 5.2 billion in 2010, up by 192% compared with last year. The overall profitability and underwriting profitability achieved is reportedly the best since PICC and China Eastern Airline signed a cooperative agreement in Shanghai to further expand the cooperation in various areas including finance, ticketing and IT. The two companies have already established cooperation in insurance field covering air travel, property and casualty, group accident, and auto. Ping An Insurance (Group) reported a consolidated net profit of RMB17.9 billion as of 31 December 2010, an increase of 24% as compared with the corresponding period of The life insurance business had a profit of RMB8.4 billion, a decrease from RMB10.4 billion in the corresponding period of The balance of the consolidated profit came from property and casualty (RMB3.9 billion), banking (RMB2.9 billion), securities (RMB1.6 billion) and other business (RMB1.2 billion). Ping An Insurance (Group) has announced to issue 272 million new H-shares to Jin Jun Company Limited, an affiliate of Chow Tai Fook, at a total consideration of HKD billion. Ping An Property & Casualty Insurance has signed a cooperative agreement with Taobao to launch auto insurance online sales. Online rates are expected to be 15% cheaper compared with those via traditional channels. The merger between Sino-US MetLife and United MetLife has been approved by the CIRC. The new venture will be called Sino-US United MetLife Insurance Company which will be formally operational from the end of April Bob Pei, CEO of United MetLife, will be the CEO of the new venture. AXA has received regulatory approval to sell its stakes in Taikang Life to buyers including Goldman Sachs. Goldman Sachs will buy 102 million shares from AXA. Following the deal, Goldman will become the second largest shareholder of Taikang Life with a stake of 12.02%. Taiping Life recorded an after tax profit to shareholders of HKD 543 million in 2010, representing a decrease of 6.7% compared to last year on a HK GAAP basis. Six insurance companies are reported to be in the running to take part in a pilot scheme for variable annuities. They are Ping An Life Insurance, Sun Life Everbright Life Insurance, Huatai Insurance, Taikang Life Insurance, AXA- Minmetals Assurance and Sino United MetLife Insurance. Regulatory update CIRC set out 2011 work plan The CIRC convened a work conference in late December 2010 and set its work plan for 2011, with risk prevention being on the top of the list. Key points are as follows: Minimise industry risks with better rules, regulation and supervision: strengthen capital constraints though effective supervision on solvency capability; and emphasise supervision on fund operation and corporate governance. Regulate market discipline: focus on outstanding issues to rectify and standardise market discipline; highlight on-site inspections to crackdown on any violations. Improve supervision over insurance companies: strengthen supervision on corporate governance, internal control, and senior management responsibilities. Prepare measures to punish violations. CIRC and CBRC to jointly regulate bancassurance activity The CIRC and CBRC have jointly issued a further notice to regulate bancassurance activities. The notice encourages insurance companies and banks to prudently choose their partners in bancassurance and ensure that both parties have sufficient capital and strong risk control capability. CIRC and CBRC will conduct joint inspections over banks' promotion of insurance products and take measures to deal with any illegal activities. The regulators require the banks' cooperative agreements with insurers to be valid for no less than one year. During the corporation period, either side can terminate the relationship voluntarily. When the agreement terminates, both sides have a responsibility to maintain the post-sales services of the insurance policies. The aim of this requirement is to prevent frequent changing of business partners Copyright 2011 Towers Watson. All rights reserved. towerswatson.com 4

5 The notice also further refines the rules published in November 2010 by CBRC requiring commercial banks to stop allowing salespersons from insurance companies to sell insurance products at bank outlets. The new rules also emphasises the importance of quality products and customer services and improve the training and credential requirements for salespersons. CIRC s interim rules on transferring part or all of insurance operations CIRC approval is required before an insurance company can transfer all or part of its insurance business. During the transfer process, insurance companies need to ensure the business and personal confidentiality and protect the insured and the beneficiary s legal rights. The transfer should also be voluntary, fair and transparent, and that the obligations of the transferor to policyholders or beneficiaries should be borne by the transferee. The transferee needs to meet the following requirements: The transferred insurance business need to be within the current business scope Hold adequate solvency to meet CIRC requirement, even after taking over the transferred business Have branches already present in the policy s original issuance location Conduct feasibility study on the new business Due diligence must also be performed before the transfer which has to be approved by the board of directors and shareholders of the parties involved. Upon completion, both the transferee and the transferor need to calculate the reserve of the transferred business independently to ensure adequacy and reasonableness. CIRC released new draft rules on establishing foreign representative offices The rules stated that a foreign insurance institutions establishing representative offices in China shall seek CIRC s approval and meet the following requirements: Have over 20 years of business operation since incorporation Have stable political, economic situation and sound financial supervisory systems in its local country Have no severe penalty within three years prior to the application of opening representative office Foreign insurance groups/companies that have over USD 2 billion total assets as at the previous year can apply to establish a representative office. Such threshold for foreign insurance intermediaries is set at over USD 200 million. The rules also state that staff of the representative offices cannot work for over two offices or engage in exact management or operating activities at any commercial institution in China. CIRC to allow investment in construction and management of governmentsubsidised housing CIRC has begun working on rules to allow insurance companies to invest in the construction and management of subsidised government housing for low and middle-income groups in the country. Insurers will be allowed to build and manage the housing at their own risk. CIRC may relax rules on debt investment Chinese regulators plan to introduce reforms that will allow insurers to invest in a wider range of debt securities. CIRC is also considering raising the proportion of assets that insurers may invest in unsecured bonds to 30% from the current 20%. Shanghai will pilot insurance exchange The central government will initiate a pilot insurance exchange in Shanghai. The exchange would initially trade in liability insurance, reinsurance, property and group life insurance products. The exchange will also offer risk securitisation products, catastrophe bonds and insurance derivatives at a later date. Companies operating in life insurance, property insurance and reinsurance as well as insurance brokers will be among the main participants in the proposed exchange. CIRC banned guarantees for other companies debt CIRC has banned the country's insurers and their asset management units or affiliates from providing third-party guarantees for other companies' debt. Exceptions are lawsuit-related debt guarantees, export credit guarantees and marine insurance guarantees. Insurers must disclose their existing debt guarantees in their financial reports and write off the exposure when assessing their repayment ability. CIRC seeks to boost agricultural insurance regulations CIRC intends to expand agricultural insurance market through an improved supervisory system. It will focus on expanding the insurance coverage of cereals, oils, cotton and timber, introducing newly subsidised insurance products, as well as motivating this insurance development in specific regions like Tibet and Xinjiang. The regulator will also reinforce the construction of the risk diversification system, optimising the traditional reinsurance channel and encouraging companies to participate in agricultural reinsurance arrangements. Motor rate reform in Xiamen Following Shenzhen and Beijing, the Insurance Association of Xiamen has implemented floating rate commercial motor insurance and to take effect from this April. The rates are based on five factors, which are claim history, multi-line insurance, sum insured adjustment, special risk adjustment and purchasing insurance in person from insurance Copyright 2011 Towers Watson. All rights reserved. towerswatson.com 5

6 companies. The Association estimates that 49% of motor policyholders will see their rates declining, while 35% remaining unchanged and 16% increasing. CIRC sets solvency stress testing scenario Non-life insurance companies are required to submit a solvency stress testing report as part of the 2010 filings. The stress testing should be based on a basic scenario and a number of stress scenarios. In January, the CIRC released a supplementary circular on the stress scenarios which set the following three stress scenarios. Increase loss ratio and expense ratio by 5%; Increase premium growth by 20%; The investment yield on stocks and funds should be negative 30% in the first year and 0 in the second year. Distribution Business written by insurance intermediaries (including individual agents, agency companies, brokers, banks, and postal offices) reached RMB 1,044.2 billion in 2010, up 14% compared with This represented 72% of gross written premiums collected nationwide. Agency The number of insurance agents reached 3,297,786 by the end of 2010, up 51,400 compared with the end of the third quarter Gross premium income generated by agents reached RMB billion by the end of 2010, an increase of 13% compared with the same period of 2009, accounting for 32% of total premium income. This included RMB billion of life premium income and RMB billion of nonlife premium income, accounting for 34% and 28% of national life and non-life premium in the same period respectively. Insurance agents generated total commissions of RMB 56.9 billion in 2010, a decrease of 0.29% from the same period in Life agents generated RMB 47.1 billion and non-life agents generated RMB 9.7 billion. Bancassurance The number of bank branches and postal offices selling bancassurance products reached 138,477 by the end of 2010, up 1,162 compared with the end of third quarter of This included 113,632 bank branches (up 4,737 branches) and 24,845 postal offices (down 3,575 branches). By the end of 2010, total premium income from bancassurance (including products sold via bank counters and postal offices) stood at RMB billion, up 20% compared with the same period of 2009, accounting for 30% of premium income. This included RMB billion from bank branches and RMB 89.6 billion from postal offices. The remainder of the business is sold through other channels such as auto dealers, airline counters and at railway stations. Agency companies and insurance brokers Agency companies generated total premium income of RMB 48.2 billion by the end of 2010, up 47% compared with the corresponding period last year, accounting for 3% of total premium. Life business accounted for 29% and non-life the remaining 71%. The premium income from insurance brokers reached RMB 31.3 billion by the end of 2010, up 28% compared with the corresponding period of 2009, accounting for 2% of total premium. Life business contributed RMB 4.3 billion, nonlife RMB 26.2 billion and reinsurance the remaining RMB 0.8 billion. Products Manulife-Sinochem Life recently developed an insurance product with a special settlement option which enables a policyholder to switch the policy to an income-oriented product offering annual coupons. If a policyholder chooses to exercise the settlement option, he will receive 8% of the sum assured as annual coupons, starting from the 5th policy anniversary for life. In addition, policyholders can choose the timing and manner for receiving the annual coupons for their needs, or choose to accumulate them for interest. Taikang Life launched a whole life participating plan with critical illness rider targeting rural residents. The premium is RMB 500 per policy with a minimum purchase of two policies. The sum insured is up to 33 times of premium paid. In addition to the 25 major critical diseases listed by Insurance Association of China, it also covers 7 common critical illnesses specific for rural residents. Jiahe Life introduced a participating endowment plan featured with reversionary bonus. Based on policyholders needs, the product also allows automatic renewal upon policy maturity and policy term extension to up to the age of 85 according to customers needs. AIA has introduced an endowment plan with a critical illness rider. Once the insured person is diagnosed of one of the 32 critical illnesses listed in the insurance contract for the first time, the insurer will pay the sum assured. In addition, if the insured dies or survives to policy maturity, the insurer will pay the sum assured again. Ping An Life has introduced a participating endowment product covering total disability, disease death and accidental death benefit. The policy term is 5 years with minimum single premium of RMB1,000. The product is distributed through bank channel only. CITIC-Prudential Life has introduced a unit-linked product with a minimum single premium of RMB30,000. The product offers annuity option. If inception age is less than or equal to 60, the policy can be converted to an annuity contract when the insured reaches the age of 70. For other ages the policy can be converted to an annuity contract starting the tenth policy anniversary. Copyright 2011 Towers Watson. All rights reserved. towerswatson.com 6

7 Pacific-Antai launched an endowment plan with a long term critical illness rider. The insurance product offers 5 specific surgery and disease protection. For each type of surgeries or diseases coverage, the policyholder can obtain a payment of 20% of basic sum insured. Regarding critical illness, the company divides the 33 diseases into two groups. If the insured survives from one disease in one group for at least 28 days, the company will pay critical illness benefit and waive the remaining premium payments. After one year, if the insured suffers from another group of diseases, the company will pay critical illness benefit again. Generali China Life has launched two new endowment insurance products with one targeting the general population covering 28 dread diseases and another targeting women. For both products, the insured can receive annual coupon of 3% to 5% of annual premium until maturity. CPIC Life launched a whole life participating endowment plan with critical illness riders. The plan, featured with reversionary bonus, covers 35 critical illnesses. New China Life introduced a participating annuity product targeting high net worth customers of Bank of Communications. After the premium payment period, the policyholder will get an annuity payment every year and the payment amount will increase with added distributed dividend. If the insured dies before maturity, the insured will receive return of premium in addition to a terminal bonus. The plan also offers policy loan up to 80% of cash value. We have seen crediting rates of universal life products, mostly tied to term deposit rates, increased since late The central bank increased interest rate a few times to curb inflation pressure since October Personnel changes Garth Jones has left CPIC and was recently announced to be the Executive Vice President and Group Chief Financial Officer of AIA Group Limited. Jason Sadler ( 石 湛 森 ) has been appointed the Member of Board of CIGNA-CMC Life. Li Changexun( 李 昶 勋 ) has been appointed the Member of Board and the General Manager of Samsung Air China Life. Ma Junshuo ( 马 君 硕 ) has been appointed General Manager and CEO of Aegon-CNOOC. Qu Honglei ( 曲 红 蕾 ) has been named Chief Actuary of Aviva-COFCO. Tan Qiang ( 谭 强 ) has been appointed the Member of Board and the General Manager of CITIC-Prudential Life. Zhang Fade ( 张 发 得 ) has been appointed the Member of Board of Cathay Life. Zhang Hongliang ( 张 宏 良 ) has been appointed General Manager of BoCommLife. Copyright 2011 Towers Watson. All rights reserved. towerswatson.com 7

8 Contact details Towers Watson s Risk Consulting and Software practice in China is based in Shanghai and Beijing. Please contact Adrian Liu and Michael Ross for life insurance, Alex Zhu for non-life insurance and Steve Kean for distribution consulting. Adrian Liu General Manager, Life Insurance Consulting, China Alex Zhu Head of Non-Life Insurance Consulting, China Steve Kean Products, Distribution and Markets Michael Ross Director, Life Insurance Consulting, Greater 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 alex.zhu@towerswatson.com steve.kean@towerswatson.com michael.ross@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 organisations 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. Copyright 2011 Towers Watson. All rights reserved. towerswatson.com 8