The Chinese Insurance Market

Transcription

1 The Chinese Insurance Market China Mainland January to March 2014 Issue 28 (January to March 2014) Welcome to Issue 28 of the China Newsletter, covering developments in the Chinese insurance market in the first quarter of Gross written premiums from January to March in 2014 were RMB billion, up 35.9% compared with the same period last year. The total premium income for life insurance was RMB billion, up 42.9%. The total premium income for non-life insurance was RMB billion, and RMB billion for accident and health insurance, up 16.1% and 53.6% respectively. If investment related premiums are included, total life premiums would amount to RMB billion. In the first quarter of 2014, the China Insurance Regulatory Commission ( CIRC ) approved the opening of additional branches for 10 life and 3 non-life insurers. In this quarter, the CIRC approved the capital injection plans of 16 life and non-life insurance companies. Several insurance companies developed strategic cooperation relationships with provincial governments to improve infrastructure construction and regional development, in sectors such as agriculture, transportation, medical services, cultural education, etc. The CIRC releases a circular on the regulation of high cash value products to monitor the qualification requirements for selling such products and to control premium volumes based on the capital of the company. The CIRC releases a circular on strengthening and improving the supervision of insurance funds investment ratios, dividing investment assets into five categories and establishing the regulation of asset categories, concentration risk, risk monitoring and internal ratio management. In this issue Industry statistics Market update New entrants Expansion and capital injection Corporate developments Regulatory update The CIRC releases a circular on Regulation of High Cash Value Products The CIRC release a circular on Strengthening and Improving the Supervision of Insurance Funds Investment Ratio The CIRC and China Banking Regulatory Commission ( CBRC ) released a circular on Further Regulating Commercial Banks Insurance Agency Business The CIRC releases a circular concerning issues concerning Reinsurance Transactions of Foreign Insurance Companies and Their Affiliates Products Personnel changes Contact details 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 towerswatson.com 1

2 Industry statistics January to March 2014 The Chinese insurance industry generated gross written premiums of RMB billion from January to March 2014, up 35.9% compared with the same period last year, according to the CIRC. The contribution of life premiums was RMB billion, an increase of 42.9% compared with the corresponding period in The contribution of non-life premiums was RMB billion, and personal accident and health was RMB billion, up 16.1% and by 53.6% year-on-year respectively. If investment related premiums are included, total life premiums would amount to RMB billion. Life insurers The total life premium income collected by domestic life insurance companies from January to March in 2014 was RMB billion including both life and short term business. This is an increase of 44.9% compared with the same period last year, accounting for 96.3% of total life premiums. If investment related premiums are included, the total life premium income of domestic companies would amount to RMB billion and account for 96.4% of the total market. Around 76% of domestic life insurers reported positive growth from January to March Excluding investment related premiums, China Life reported 17.6% increase in premium income with RMB billion, ranking first in the market with a 26.1% market share. Ping An (including life, health and pensions) remained in second position, with premium income of RMB billion, a year-on-year growth rate of 26.8%. PICC (life and health business combined) took third place, reporting an increase of 153.9% in premium income of RMB billion. New China Life reported 53.0% year-on-year increase with premium income standing at RMB billion. China Pacific Life reported premium income of RMB billion, increasing by 25.2% compared with the same period in Taiping (life and pensions combined) reported year-on-year growth of 46.2% with premium income of RMB billion. Taikang (life and pensions combined) generated premium income of RMB billion, with a slight year-on-year decrease of 2.8%. ABC Life reported an increase of 104.8% in premium income of RMB 4.96 billion. China Post Life reported 181.3% increase in premium income of RMB billion. Premiums Growth China Life % Ping An Group % PICC Group % New China Life % China Pacific Life % Taiping % Taikang (2.8%) Premiums Growth ABC Life % China Post Life % Excluding investment related premiums, foreign / joint venture life companies together generated premium income of RMB billion from January to March 2014 up by 28.4% compared with last year. Around 70% of foreign / joint venture companies reported a positive increase in premium income. ICBC-AXA remains first, growing by 44.3% with RMB 3.62 billion premium income. AIA, in second position, generated RMB 2.30 billion premium income, an 11.8% increase. Generali China Life, which ranks third, showed a 66.7% increase to RMB 2.29 billion compared with CIGNA-CMC and BoComm Life both grew significantly from January to March in 2014, up by 59.5% and 63.8% on a year-on-year basis. Premiums Growth ICBC-AXA % AIA % Generali China Life % CIGNA-CMC % BoComm Life % If investment related premium were included, total premium of the top domestic and foreign / joint venture companies was as follows: Domestic Total premiums Rank 1 China Life Ping An Group PICC Group New China Life China Pacific Life Foreign Total premiums Rank 1 ICBC-AXA CITIC-Prudential AIA Generali China Life Sino-US United MetLife 1.72 Non-life insurers Domestic non-life insurers gross premium income increased by 17.1% and stood at RMB billion from January to March Foreign companies gross premium income reached RMB 2.10 billion, up by 25.6% compared with last year. towerswatson.com 2

3 PICC Property & Casualty (RMB billion), Ping An Property & Casualty (RMB billion), and China Pacific Property & Casualty (RMB billion) were the top three non-life insurers, with combined market share of 66.3% in terms of premium income from January to March These three insurers achieved premium growth of 14.7%, 27.9% and 13.3% respectively. Among the foreign non-life insurers, AIG took first place with premium income of RMB 0.29 billion, a decrease of 8.2% compared with Liberty Insurance ranked second, with premium income of RMB 0.21 billion from January to March in 2014, up by 12.0% on a year-on-year basis. Samsung, ranked third, had premium income of RMB 0.19 billion, up by 44.3% compared with the same period last year. Market update New entrants Bank of China plans to become a shareholder of Samsung Air China Life through its wholly-owned subsidiary - Bank of China Insurance ( BOC Insurance ). At the end of 2013, BOC Insurance signed a trilateral memorandum with Samsung Life and China National Aviation Holding ( CNAH ). Although the buying ratio has not been determined, BOC Insurance will most likely become the biggest shareholder of Samsung Air China Life. The CIRC has approved the establishment of China- American International Insurance Sales & Service Co., Ltd. founded by PICC Life and American International Group (AIG). The company is registered in Shenzhen with registered capital of RMB 100 million, of which PICC Life contributed RMB 75.1 million (representing a 75.1% share). Expansion and capital injection The latest approvals for the opening of new provincial/city branches for both domestic and foreign companies are as follows: The following insurance companies received approval from the CIRC to make capital injections in the first quarter of Accumulated registered capital is as follows: Insurance companies Registered capital Anbang AnCheng P&C 4.08 Anhua Agricultural Insurance 0.93 Generali China Life 3.70 Generali China P&C 1.30 Groupama Avic Insurance 1.01 Cathay P&C 0.80 Heng An Standard Life 3.04 Huatai P&C 3.00 Huaxia Life Li An Life 2.00 Liberty Insurance 1.13 PICC Health 6.45 Ping An Health 0.67 Sanguard Auto 1.00 Taiping Pension 2.00 Taiping Life Tian An Life 4.50 Union Life 2.91 Corporate developments AIA launched a Gen Y talent project, aimingat reforming insurance agencies by focusing on making them younger and more elite. The investment available for this project is up to RMB 100 million, and the plan is to recruit no more than 5,000 people. China's first non-life insurance company merger the merger of AXA Insurance and Tianping Auto Insurance has been approved by CIRC. The newly-founded joint venture company will be called AXA-Tianping Insurance. This merger, following the one of Dazhong Insurance, is another case of a domestic company non-life insurance converting to a joint venture company in China. Life insurance companies CCB Life China Post Life CIGNA-CMC Li An Life Pearl River Life PICC Life Qianhai Life Samsung Air China Life Sunshine Life Tian An Life Non-life insurance companies China Coal Insurance Groupama Avic Insurance Urtrust Insurance Branch Hebei Chongqing, Shandong Shaanxi Anhui Guangdong Tibet, Qinghai Guangdong Jiangsu Hainan Jilin Branch Hebei Heilongjiang Zhejiang China Life s data center of in Shanghai has been officially completed and is now operational. The data center, located in Zhangjiang Financial Industrial Park, Pudong, is a key part of China Life s three centers in two places IT infrastructure initiative. The Jiading Government of Shanghai and China Life Group held a cooperation signing ceremony, aiming to establish China Life (Jiading, Shanghai) city development industrial investment fund to improve the infrastructure construction, key industries and people s livelihood in Jiading. Under the agreement, the industrial investment fund will allow a limited partnership. Jiading government has contributed 30% of the whole investment and China Life the remaining 70%. The cooperation period will be for 12 years. China Life P&C and FAW Mazda Motor Sales Co., Ltd. have signed an overall cooperation agreement. The two sides will have a close strategic partnership in joint marketing, product publicity and customer services, providing FAW Mazda owners with more specialized, comprehensive one-stop insurance services. Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 3

4 China Life Investment has separately signed agreements with Chongqing Water Group and Chongqing Water Asset Management Ltd, which are significant shareholder s of Chongqing Water Group. Under the agreements, China Life will buy 23.86% and 2.18% shares of Chongqing Trust with RMB 2.43 billion and RMB 0.22 billion respectively and become Chongqing Trust s second-largest shareholder. CIRC has approved China Post Life to issue subordinated term debts with fund raising period of 10 years and raising no more than RMB 1.5 billion, which should be completed within 6 months after the approval date. By the end of first quarter 2014, the CIRC had approved Ping An Life, China Pacific P&C, Sino-US United MetLife and China Post Life to issue subordinated term debts with the same fund raising period of 10 years and raising limits of RMB 8 billion, 4 billion,0.8 billion and 1.5 billion respectively. The total sum is almost half of that issued in China United P&C and Shanghai Volkswagen Brand have held a cooperation signing ceremony in Shanghai. China United P&C will cooperate with more than 800 4S stores owed by Shanghai Volkswagen across the country in offering car insurance and property insurance. The CIRC has approved China Pacific Insurance to invest in stock index futures, allowing CPIC P&C, CPIC Life and CPIC Asset Management to conduct stock index futures investment business. CPIC s affiliated subsidiaries are the first insurance companies in 2014 that are allowed to operate a stock index futures business, and they are the second company following Ping An Asset Management. Mapfre Insurance had made a cooperation agreement with PICC Group to provide reinsurance services for 80% of PICC s Life insurance, Accident and Health insurance and Travel insurance. In addition, Mapfre will provide the technology platform for PICC. This is a significant initiative for Mapfre entering the China insurance market and also an important part of Mapfre s globalization strategy. Hubei Provincial Government and PICC Group have signed a strategic cooperation agreement. Under the agreement, the government and PICC Group will carry out insurance and investment financing cooperation in agricultural insurance, social insurance, transportation, medical service, safe manufacturing, environmental protection, cultural education among other areas. The Government of Guangdong Province, PICC Group and China Construction Bank have signed two cooperation agreements. According to the agreements, PICC Group will invest RMB 27.1 billion in Guangdong development. Sinatay Life s broker channel and Sunshine Agricultural Insurance have signed a cooperation agreement. Under the agreement, Sunshine Agricultural will be a comprehensive agent of Sinatay s broker channel products in Heilongjiang province. The CIRC has suspended Sinatay Life s new business underwriting because its solvency adequacy ratio is negative185.96%. Sinatay is currently trying to increase its capital. A capital increase of more than RMB 2.91 billion is required to comply with the regulatory red line of 150% solvency ratio. Sunshine Life and China Finance Corporation have signed a strategic cooperation agreement. The two sides will conduct extensive cooperation in financial information services, insurance services, brand promotion, market expansion, strategic project development and data research, etc. Sunshine Group and Chongqing Provincial Government have signed a strategic cooperation agreement. The two sides will carry out multi-level and multi-area strategic cooperation in non-life insurance, life insurance, project investment, fund financing, financial innovation, etc. Taiping Group and Shanghai Pudong Development Bank have signed a comprehensive business cooperation agreement in Shanghai which covers a wide range of areas, including insurance agency business, capital settlement and cash management business, assets custody business, pension business, financial product cooperation, e- business, bank cards and overseas business. Taiping Group and Shenhua Group have officially signed a strategic cooperation agreement. Under the agreement, the two sides will enhance bilateral cooperation in enterprise non-life insurance, enterprise annuity and employee benefits insurance. Regulatory update The CIRC releases a circular on Regulation of High Cash Value Products In order to guard against risks and promote the development of high cash value products, the CIRC has issued the following regulation: The high cash value products are defined as where the sum of the cash value at the end of second policy year and the cumulated survival benefits are greater than the cumulated paid premium, and have an expected policy persistency of surviving three years of less than 60. Unit-linked products and variable annuities are excluded; The expected persistency should be prudently assessed by the Chief Actuary based on the company s experience analysis, product design purpose, distribution specifications and service quality; The cash value at the second policy year of universal products should be prudently assessed by the Chief Actuary based on the credit rate strategy, minimum guaranteed interest rate and customer benefit illustration ; The company should immediately stop selling high cash value products, if the company s solvency ratio is less than 150%; If the actual commission or fees of high cash value products is more than the expense loading and initial cost used in pricing, the commissions should be reviewed and approved by the company s Board; Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 4

5 If there are any differences in participating or universal high cash value products compared to other products in either their investment strategy, participating basis or crediting rate strategy, the company should establish corresponding participating or universal sub-accounts to ensure clear, fair and independent accounting; The company should reasonably control the premium scale of high cash value products and keep the annual premium in line with its capital strength: - From 1 January, 2014, the annual premium of high cash value products should be less than twice the company s capital; the minimum required capital any amount in excess will be increased based on the CIRC s specific standards; - For companies whose annual premium of high cash value products in 2013 is higher than twice the year-end capital, a 5-year transition period is required beginning from 1 January, During the transition period, additional minimum required capital will be charged on the high cash value product premium exceeding the base amount; Since the first quarter of 2014, insurance companies should deliver and submit the High Cash Value Product Report within 20 days following the end of every quarter. The CIRC releases a circular on Strengthening and Improving the Supervision of Insurance Funds Investment Ratio The CIRC has reviewed the existing regulatory policies on investments and has developed a multi-level ratio regulatory framework based on The Provisional Regulations of Insurance Funds Management, combining the aggregation and categorization of assets: The investment asset (excluding separate account capital) is divided into five asset categories including those allocated to liquidity, fixed-income, equities, property and other financial assets; Establish the regulatory ratio of asset categories: - The book balance of equity assets should be no more than 30% of the company s total assets at the end of the last quarter, and the book balance of major equity investment should be no more than the company s net asset at the end of the last quarter. The book balance excludes the insurance companies equity invested by the company s own funds; - The book balance of property assets should be no more than 30% of the company s total assets at the end of the last quarter. The book value excludes any self-use real estate. The book balance of self-use real estate should be no more than 50% of the company s net asset at the end of the last quarter; - The book value of other financial assets should be no more than 25% of the company s total assets at the end of the last quarter; - The balance of overseas investments should be no more than 15% of the company s total assets at the end of the last quarter; Establish the regulatory ratio of concentration risk: - The book balance invested in single fixed-income assets, equity assets, property assets and other financial assets should each be no more than 5% of the company s total assets at the end of the last quarter; - The book balance invested in a single corporate entity should be no more than 20% of the company s total assets at the end of the last quarter; Establish the regulatory ratio of risk monitoring: - Liquidity monitoring; - Leveraged finance monitoring; - Risk category monitoring; Internal ratio management: - Based on the circular, asset and liability management and asset allocation requirements, insurance companies should develop systems for investment diversification management and risk control, to control the investment ratio of categorized assets, high-risk assets, single industry, single category and single trading counterpart, etc. ; - Insurance companies should develop liquidity risk management programs, including liquidity risk management systems and governance structures, management strategy and significant policies, major methods and processes to identify, measure and monitor liquidity risk, evaluation indicators of liquidity risk, stress testing and contingency plans, etc.; Monitoring management The CIRC and CBRC releases a circular on Further Regulating Commercial Banks Insurance Agency Business In order to regulate commercial banks insurance agency business, protect the interests of customers and promote the development of the business, the CIRC issued the following regulation: Commercial banks should conduct a needs analysis Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 5

6 and risk tolerance assessment of potential policyholders and recommend appropriate insurance products to clients based on the evaluation results; Insurance companies and commercial banks should proactively develop risk-protection and long-term savings insurance products. No less than 20% of the total premium income should come from the sum of accidental insurance, health insurance, term life insurance, whole life insurance, annuities with policy terms no less than 10 years, endowment with policy terms no less than 10 years, property insurance (excluding company-investment-type insurance), guaranteed insurance and credit insurance; A cooling off period of 15 days should be identified, together with the rights of policyholders within the cooling off period in the contracts of insurance products for policy terms longer than a year; Each commercial banks branches should develop insurance business cooperation with no more than 3 insurance companies (counted by separate legal entity) in the same fiscal year; Commercial banks should strengthen the management of sales staff. Sales staff of bank branches should sell insurance products based on the commercial banks authorization and not sell unauthorized products or sell products personally negotiated with an insurer. The CIRC releases a circular concerning issues concerning Reinsurance Transactions of Foreign Insurance Companies and their Affiliates In order to improve the security of reinsurance transactions and to guard against cross-border financial risk transfers, the CIRC issued the following: Reinsurance business between foreign insurers and their affiliates should be approved by the CIRC; Reinsurance transactions between foreign insurers and their affiliates should follow the principles of compliance, integrity and be fair; For foreign companies that conduct reinsurance transactions with affiliates, their affiliates should meet the following requirements: - The affiliates should have continuously operated for more than three complete fiscal years, generate net profit after offsetting any gains and losses in the last three fiscal years, and have no abnormal cash flow fluctuations; - The affiliates should comply with the local regulators solvency standards and have no significant law violations in the last three years; - The latest financial strength rating of the affiliates should comply with the required level by the CIRC; - When a foreign insurer only receives ceded business from a certain affiliate without ceding its business out, the affiliate does not need to meet the above requirements; - Other conditions as required by the CIRC; The foreign insurance company should submit next year s proposed reinsurance transaction application to the CIRC between September 1 and November 30 each year; The retrocession reinsurance business between foreign insurers and their affiliates also applies to this notice. Products ABC Life has launched a comprehensive cancer product, together with Swiss Re and Roche, through multiple distribution channels. The product has three aspects of prevention, treatment and protection. Prevention free anti-cancer consulting from Roche and 24*7 consulting and emergency rescue service from Healthlink; Treatment convenience of an appointment with an, Protection - medical service guide and secondary diagnosis provided by Hailin Group; Protection - multiple medical allowances including cancer hospitality, cancer surgery, radiotherapy and liver and marrow transplantation. Aegon-CNOOC has launched its first whole life cancer health insurance after the reform of life insurance pricing policy, resulting in a premium rate reduction of 20% to 40%. Features include cancer care, mild cancer compensation and lifetime protection. The product provides 100% of the basic sum assured for those suffering from malignant tumors. It also provides cover for those suffering from mild cancer that are diagnosed at an early stage, have a high cure rate, low treatment cost and minor damage to the body, with benefits of 20% of the basic sum assured. AIA has launched an enhanced whole life insurance package, which has more comprehensive cover compared with similar products in the market. This package not only provides the basic dread disease and cancer protection, but also has 5 other protection features, including covering for end-stage disease, total disability, long-term elderly care, death and accidents. In all, the product offers a total of 7 types of protection. A feature of this package is that it provides an additional payment of 50% of the basic sum assured, for certain cancers that have high incidence rates. The product also provides another additional payment of 50% of the basic sum assured. China Life, together with Chongqing Micro-enterprises Association, has launched an insurance package, providing protection to owners, employees and their spouses and children, aged from 18 to 65 years old, in micro-enterprises. The premium is RMB 100 per policy per person; each person can buy a maximum of 4 policies. The package provides protection for accidents, transportation and other aspects with a policy term of one year. CPIC Life has launched a travel insurance product online and also on the Wechat platform, It also contains an Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 6

7 allowance in the event of delays, emergency transportation allowance, long-distance referral transportation allowance, and family members long-distance visiting allowance. The package charges a premium of RMB 1 per day. The package has become one of the best sellers in CPIC s online store. CPIC Life has launched an insurance financing package, including two financing packages separately designed for children and adults for a limited time and it ceased being sold at the end of March It provided customers with a whole life coverage from education fund to pension. The package consists of participating annuity for both young and old customers, additional universal annuity and additional premium-waiver accident insurance. It combines the structured planning of participating products and the flexibility of universal products, capturing future investment opportunities for customers and locking in a better future. Generali China Life has launched a comprehensive insurance package in agency channel to meet female needs the package provides female policyholders with cover against 37 kinds of dread disease and pre-invasive carcinoma protection, as well as specific accident provisions for facial plastic surgery and specific surgery and medical cover. Female policyholders who have plans to become pregnant, the product covers pregnancy complications and congenital severe illness. The package also provides an annuity conversion option, enabling the policyholder to turn their protection into a life-long pension after retirement. Manulife-Sinochem has launched a new dread disease insurance product covering four groups of more than 40 kinds of dread disease. Customers can receive up to a maximum of 330% of the sum assured, and will be exempted from future premium payments after a claim starts. If customers are diagnosed with any one of the 10 mild diseases before they attain 70 years old, the product will pay an additional 20% of the sum assured. Ping An Health has launched a proactively managed health insurance and service pattern. It is tailored specifically for high-end customers as a medical protection and health management service. Customers can benefit from hospitalization coverage (including VIP wards) with sums assured of RMB 500,000 and special clinic coverage with a sum assured of RMB 20,000. Payments of medical expenses are free from national health insurance directory restrictions, and can be 100% reimbursed for the liabilities within the policy coverage. Ping An Life has launched a participating endowment product for high-end customers. The product offers short premium terms of 3, 5 or 10 years. Beginning from the third policy year, customers aged 60 and younger can receive a survival annuity of 12% of the basic sum assured every year, and 15% of the basic sum assured once they reach 61 years old. Sun Life Everbright Life has launched a health insurance product, which is designed for young consumers with a renewable policy term. The biggest innovation is that the policy clauses are simple and easy for policyholders to understand. Firstly, if the sum assured is less than RMB 500,000, customers aged from 18 to 40 years old are exempted from medical examination, and are guaranteed they can renew the policy without a medical examination after the term expires. Secondly, this product has a flexible policy term, beginning from 5 years term can be extended to a maximum of 20 years. This compares with other products in the market which have fixed terms of 10 to 20 years. Thirdly, while most of the dread disease insurance products in the market cover dozens of serious illness, this product focuses on the cancers with the highest probability of occurrence Taiping Life has launched a participating endowment product for children. It provides financial support for children through this important stage in their lives by providing the funds needed for their care and future. The product combines three functions - "education plan", "family business support" and "pension reserve". This product also provides high-school funds of 200% of the sum assured on the child s attaining 15 years old, college funds of 300% of the sum assured at 18 years old, family funds of 500% of the sum assured at 28 years old, and an annual survival annuity of 120% of the sum assured beginning from 65 years old. The product can be purchased in parts, with each part of RMB 3,600 covering customers from 28 days to 15 years old, and provides flexible premium terms. Personnel changes Andrew Michael Scott has been appointed General Manager of Ping An Health Insurance Co., Ltd. Fei Yifei( 费 一 飞 ) has been appointed General Manager of Sunshine Life Insurance Co., Ltd. Guo Shengchen( 郭 生 臣 ) has been appointed General Manager of PICC P&C Insurance Co., Ltd. Hou Weidong( 侯 维 栋 ) has been appointed Chairman of the Board of BoComm Life Insurance Co., Ltd. Jing Weifeng( 井 维 峰 ) has been appointed Chief Actuary of Samsung P&C Insurance Co., Ltd. KIM ILKWON has been appointed General Manager of Samsung Air China Life Insurance Co., Ltd. Li Shaofei( 李 少 非 ) has been appointed Chairman of the Board of Sun Life Everbright Asset Management Co., Ltd. Liu Zhiwei( 刘 志 伟 ) has been appointed Chairman of the Board of Groupama Avic P&C Insurance Co., Ltd. Luo Haiping( 罗 海 平 ) has been appointed General Manager of China United Property Insurance Co., Ltd. Ma Huixiu( 马 惠 秀 ) has been appointed Chief Actuary of HSBC Life Insurance Co., Ltd. Pan Zhong( 潘 忠 ) has been appointed General Manager of Zhongrong Life Insurance Co., Ltd. Qin Yafeng( 秦 亚 峰 ) has been appointed General Manager of Sinosafe Asset Management Co., Ltd. Xiang Xujia( 向 旭 家 ) has been appointed General Manager of Sino Asset Management Co., Ltd. Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 7

8 Xu Hanshan( 许 汉 山 ) has been appointed Chief Actuary of Union Life Insurance Co., Ltd. Yang Mingsheng( 杨 明 生 ) has been appointed Chairman of the Board of China Life Asset Management Co., Ltd. Yang Jianying( 杨 建 莹 ) has been appointed Chairman of the Board of Old Mutual-Guodian Life insurance Co., Ltd. Yao Dafeng( 姚 大 锋 ) has been appointed Chairman the Board of Anbang Life Insurance Co., Ltd. Zhang Hanping( 张 汉 平 ) has been appointed General Manager of Sino Life Insurance Co., Ltd. Zhang Hanping( 张 汉 平 ) has been appointed Chairman of the Board of Sino Asset Management Co., Ltd. Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 8

9 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 and Yao Wang for non-life insurance and Steve Kean for distribution consulting. Adrian Liu General Manager, Insurance Consulting, China Jenny Lai Director, Property and Casualty Insurance Consulting, China Steve Kean Director - Insurance and Wealth Management Consultancy, Asia Pacific Michael Ross Director, Life Insurance Consulting, Greater China Wesley Cui Director, Life Insurance Consulting, China Yao Wang Director, Property and Casualty 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: [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] 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 expected. 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 9