The Chinese Insurance Market

Transcription

1 The Chinese Insurance Market China Mainland January to March 2013 Issue 24 (January to March 2013) Welcome to Issue 24 of the China Newsletter, covering developments in the Chinese insurance market in the first quarter of In this quarter, over half of the domestic life insurance companies have reported negative growth in premium income from January to March in 2013, while 75% of the foreign insurers had positive growth. The China Insurance Regulatory Commission ( CIRC ) has approved the opening of branches of BoCommLife, Sino-US United Metlife and Groupama Avic. Several insurance companies committed to the development of new insurance marketing channels. They are, innovatively, exploring broader market opportunities by cooperating with large e-business suppliers, independently researching and developing online sales platforms and electronic mobile client platforms. Ping An, China Life and other insurers are investing in other nonfinancial projects. In this quarter, the CIRC has approved the capital injection plans of 8 life and non-life insurance companies. The CIRC promulgated several regulations to regulate the insurance industry and industry practitioners such as regulations on administration of insurance statistics. The CIRC promulgated more regulations and notices regarding the investment management capability of insurance institutions, bond investment, asset management and other financial investment related business, which includes the Circular on the Pilot Scheme of Insurance Asset Management Companies Conducting Asset Management Business, regulations on Bond Investment Plan and on investment management capabilities of insurance institutions. 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 Expansion and capital injection Corporate developments Regulatory update CIRC releases regulations on administration of insurance statistics CIRC releases Circular on the Pilot Scheme of Insurance Asset Management Companies Conducting Asset Management Business CIRC releases Inspection Standards for Critical Illness Insurance Solvency CIRC regulates the Critical Diseases Insurance Business CIRC regulates Bond Investment Plan CIRC regulates Investment Management Capabilities of Insurance Institutions The CIRC regulates Property & Casualty insurance companies telemarketing services Distribution Agency firms and insurance brokers Insurance assessment institutions Products Personnel changes Contact details towerswatson.com 1

2 Industry statistics January to March 2013 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 March in 2013, up by 6.5% compared with the same period last year, according to the CIRC. The contribution of life premiums was RMB billion, a slight decrease of 0.7% compared with the corresponding period in The contribution of non-life premiums was RMB billion, and personal accident and health was RMB 41.4 billion, up by 16.3% and by 24.8% year-on-year respectively. Life insurers The total life premium income collected by domestic life insurance companies for the first quarter of 2013 was RMB billion including both life and short term business, an increase of 1.5% compared with the same period last year, accounting for 95.8% of the total life premium. About 53% of the domestic life insurers have reported negative growth in the first quarter this year. China Life reported a 1.7% decrease in premium income with RMB billion, still ranking first in the market. Ping An (including life, health and pension) remained in second position, with premium income of RMB billion, a yearon-year growth rate of 14.8%. New China Life took third place, reporting a decrease of 9.9% in premium income with RMB billion. China Pacific Life reported premium income of RMB billion, decreasing by 4.5% compared with the same period in PICC Life reported a 17.5% decrease in premium income, standing at RMB billion, while PICC life and health business combined reported a 15.9% year-on-year decrease with premium income standing at RMB billion. Taiping (life and pension combined) reported a vigorous year-on-year growth of 73.0% with premium income of RMB billion. CCB Life reported a 51.9% increase in premium income, at RMB 2.22 billion. ABC Life reported a 52.2% increase in premium income, reaching RMB 2.42 billion. Zhongrong Life, Kunlun Health, Anbang Life, and Sino-Conflux have all expanded aggressively in the first quarter of 2013, up by more than 100% on a year-on-year basis. Company Premium Growth (RMB billion) Zhongrong Life % Kunlun Health % Sino-Conflux % Anbang Life % Taiping % Company Premium Growth (RMB billion) Jiahe ABC Life % CCB Life % Ping An % China Life % China Pacific Life % New China Life % Foreign / joint venture life companies together generated premium income of RMB billion from January to March this year, up by 31.3% compared with the same period last year. Around 75% of the foreign companies reported a positive premium income increase. ICBC-AXA overtook AIA for first place among the foreign life insurers, growing aggressively by 656.6% with RMB million premium incomes. AIA in second position generated an RMB million premium income, and 6.9% increase. Generali China Life, which ranked third, showed a 2.6% decrease to RMB million compared with the same period last year. Shin Kong & HNA Life and King Dragon have both expanded aggressively in the first quarter of 2013, up by 233.9% and 90.2% on a year-on-year basis. Company Premium (RMB million) Growth ICBC-AXA 2, % Shin Kong & HNA Life % King Dragon % AIA 2, % Generali China Life 1,371.3 (2.6%) Non-life insurers Domestic non-life insurers gross premium income increased by 17.0% to RMB billion from January to March in Foreign companies gross premium income reached RMB 1.7 billion, up by 5.8% compared with the same period last year. PICC Property & Casualty Insurance (RMB 55.3 billion), Ping An Property & Casualty Insurance (RMB 27.1 billion), and China Pacific Property & Casualty Insurance (RMB 20.7 billion) remained the top three non-life insurers, with a total of 65.9% market share in terms of premium income by the end of March this year. These three insurers achieved premium growth of 13.1%, 12.0%, and 20.3% respectively. Among the foreign non-life insurers, AIG (formerly Chartis) Insurance Company China Limited remained top, with premium income of RMB 0.32 billion in the first quarter this year, down by2.5% compared with the corresponding period in Liberty Mutual s gross premium was RMB 0.19 billion, up by 14.3% compared on a year-on-year basis, and took second position. Allianz Property & Casualty, ranked third, had premium income of RMB 0.13 billion, up by 7.7% compared with the same period last year. towerswatson.com 2

3 Market update New entrants Beibu Gulf Property & Casualty Insurance Company Limited has been approved by the CIRC to open business with registered capital of RMB 0.6 billion. The company, registered in Guangxi, is funded by 12 domestic companies including Guangxi Finance Investment Company Ltd etc. 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 insurance companies BoComm Life Sino-US United Metlife Non - life insurance companies Groupama Avic Branch Beijing Dalian Branch Liaoning The following insurance companies have obtained approval from the CIRC to make capital injections in the 1st quarter of Accumulated registered capital is listed as follows: Insurance companies Registered capital (RMB billion) Dragon Life 2.00 Great Wall Life 1.58 Happy Life 2.74 Heng An Standard Life 2.76 HSBC Life 1.03 Huatai Life 3.97 Liberty Insurance Company 1.01 PICC Health 4.68 Zhongrong Life 0.40 Corporate developments The CIRC has approved AIA Group Limited (Hong Kong) to set up a representative office in Beijing. Lai Xianglin ( 赖 祥 麟 ) will serve as the Chief Representative. Yonyou Software Co., Ltd. (formerly known as UFIDA) plans to subscribe for 200 million shares of Aeon Life for RMB 240 million, accounting for 12.05% of the total stake based on the value before this capital raising. The CIRC has approved CNinsure s proposal to merge its holding of 14 insurance agencies. China Life Group invested nearly RMB 300 million to purchase 35% equity interest in COFCO (China Oil & Foodstuffs Corporation) Futures Co., Ltd., becoming its second largest shareholder. After this acquisition, COFCO Futures becomes the second futures company funded by insurance funds. China Life, Ping An Group and Union Life invested a sum of RMB 17 billion in some key infrastructure construction projects in Hubei, including Hubei intercity railway projects, social security housing and nursing home construction in Wuhan, etc. China Pacific Insurance (Group) and Allianz have signed an agreement to set up CPIC-Allianz Health Insurance Co., Ltd. China Pacific Insurance (Group) and Ping An Group Insurance intend to invest billions on non-financial projects in Wenzhou, including setting up rural mutual funds and property and casualty insurance companies which are mainly lead and sponsored by local private enterprises, etc. CPIC P&C and Ping An P&C have respectively launched non-vessel operating deposit liability insurance, It breaks PICC P&C company s monopoly in this insurance sector in China. Peak Reinsurance Company Limited ( Peak Re ), which is funded by Fosun International Limited ( Fosun ) and the International Finance Corporation ( IFC ), announced that it has successfully obtained formal approval from the Office of the Commissioner of Insurance in Hong Kong to start business, with a territorial scope encompassing the Asia- Pacific region. Fosun invested US$ million (85.1%) and IFC invested US$81.95 million (14.9%) in the company. Guohua Life and Bestpay of China Telecom have signed a strategic cooperation agreement to collaborate in a financial information system for the purpose of exploring new distribution channels. Bestpay will provide Guohua Life with a project package including outbound services, mobile offices and other services to improve overall marketing efficiency. Huatai Life launched a new model of critical illness medical services by providing clients with customeroriented services without increases in premium rates. All clients who buy the designated products with sums insured in excess of RMB 30,000 are eligible for four types of services provided by medical service agencies for free. The services are online medical advice, comprehensive treatment guidance, and secondary consultation by local and foreign specialists. PICC Life raised RMB billion by offering new shares to existing shareholders. The money raised will be mainly used to boost its capital and improve the solvency ratio. Ping An Insurance completed the transfer of 976 million shares from HSBC Holdings to Charoen Pokphand Group. HSBC now holds no shares in Ping An Insurance Group. Ping An Insurance and Baidu have signed the joint business plan strategic cooperation agreement to closely collaborate in data research, consumer study, brand building, product innovation and marketing model. The China Securities Regulatory Commission (CSRC) announced that the issue of RMB 26 billion convertible Copyright 2012 Towers Watson. All rights reserved. towerswatson.com 3

4 bonds by Ping An Group has been approved. The funds raised are estimated to meet the demand for its solvency capacity over the next two or three years. Ping An Life s mobile e-service is the first smart phone application used for life insurance policies, setting an unprecedented example of life insurance policies on smart phones in China. The application connects product information service seamlessly to smart phones to allow policy self-service. More than 20 kinds of services are available to the users including policy inquiry, policy modification and obtaining information of life insurance products, etc. Standard Chartered and Ping An Life have established a bancassurance strategic cooperation relationship beginning by selling two annuity products. This is the first time for Standard Chartered to sign this kind of cooperation agreement with domestic insurers. Ping An P&C has planned to build four main training centres in China in order to improve their service quality. Recently, they have introduced flight attendant service equivalent standards to their consumer services. Employees selected from regional companies are now being trained under the new standards in the newly developed training centres. Sun Life Everbright and Everbright Securities (both subsidiaries of China Everbright Group) are the first to start securities-insurance cooperation in the industry and are launching a pilot program in Guangdong. Everbright Securities will provide clients with not only securities services but also insurance services at the same time. Sunshine Life collaborated with 360buy Jingdong Mall and Suning to expand new online insurance sales channels. The products sold online include auto insurance, accident insurance, health insurance, etc. The newly developed Agent Mobile e-service System by Sunshine Life has been formally launched. Self-services such as policy status inquiry, issues resolution processing and insurance coverage enquiries are available to the company s 50,000 agents at anytime, anywhere. Taikang Life has started its own e -business model, the first online insurance platform in China. Taikang Online took the lead in the Lunar New Year special promotion, which first brings big marketing events into its online distribution channel. Taikang Life and Bank of Beijing have signed a strategic cooperation agreement. According to the agreement, Bank of Beijing will provide Taikang Life with all-round insurance funds custody services. Taiping plans to buy 25.05% stake of Taiping Life from its holding company - China Taiping Insurance Group, a transaction which will raise its share from 50% to 75%. Regulatory update CIRC releases Regulations on Administration of Insurance Statistics CIRC released Regulations on Administration of Insurance Statistics, which were implemented from March 1 st 2013, while the Provisional Regulations on Administration of Insurance Statistics, released on September 29 th 2004, were abolished at the same time. Compared with the Provisional Regulations on Administration of Insurance Statistics, the new regulations make changes in the following areas: An insurance institution shall submit its annual strategy report to the CIRC before April 30th of the following year. The statistical information submitted by the insurance institution shall be audited and confirmed by its main responsible person. The rewarding provisions have been abolished CIRC releases Circular on the Pilot Scheme of Insurance Asset Management Companies Conducting Asset Management Product Business The CIRC released a Circular on the Pilot Scheme of Insurance Asset Management Companies ( IAMCs ) conducting asset management. The regulations included the following key points: IAMCs are allowed to issue asset management products to insurance group companies, insurers, IAMCs and other qualified investors who have the capability of identifying and bearing the risks, including specific products directed to single investors, and collective products to multiple investors. The minimum amount invested in an asset management product issued by an IAMC is, in the case of a single specific product, RMB30 million or, in the case of a collective investment product, RMB1 million for each investor. The maximum number of investors investing in a collective investment product is 200. An IAMC is required to engage a qualified custodian for safekeeping of entrusted assets, monitoring the investment activities of the IAMC and performing other supervisory duties as required. The funds raised from investments are permitted to be invested by an IAMC in bank deposits, stocks, bonds, security investment funds, central bank notes, debt Copyright 2012 Towers Watson. All rights reserved. towerswatson.com 4

5 financing instruments for non-financial enterprises, credit asset-backed securities, infrastructure investment schemes, real estate investment plans, project asset-backed plans and other assets recognized by the CIRC. CIRC Releases Inspection Standards for Critical Illness Insurance Solvency CIRC released Announcement on Rules for Critical Illness Insurance Solvency Reports Questions Answered No.14: Minimum Capital of Critical Illness for Urban and Rural Residents. The rules set a new standard for the minimum capital levels for critical illness business: For business not passing the risk significance test, the minimum capital is 1% of policy liabilities. For business passing the risk significance risk, the minimum capital should be calculated as follows: For class A risk-sharing arrangements, the minimum capital is 10% of net premiums if the loss ratio written in the contract does not exceed 105%; For class B risk-sharing arrangements, the minimum capital is 10% of net premiums, if the insurance company takes Y% responsibility for the parts exceeding the loss ratio (X %) written in contract, while X% is less than or equal to 95% and Y% is less than 100%; For class C risk-sharing arrangements, if the insurance company takes the insurance liability according to N- year average Class A or Class B risk-sharing arrangements, where N is greater than 1, the minimum capital is (15%-5%/N 0.5 ) of net premiums for the parts less than RMB 100 million, and (11%-1%/N 0.5 ) of net premiums for the excess over RMB 100 million. If the above A, B and C risk-sharing arrangements are not contained in the contract, the minimum capital is 15% for the net premium less than RMB 100 million, and 11% of the excess over RMB 100 million. For insurance companies that have operated in the business for three years, the minimum capital is the larger of the following two items: the sum of minimum capital for the above 4 items; 17% of the parts less than RMB 85 million of the average compensation amount for the past 3 year business plus 13% of the excess over RMB 85 million. For insurance companies that have operated in the business for less than three years, the minimum capital is the sum of minimum capital for the above 4 items. CIRC regulates the Critical Diseases Insurance Business In order to promote the healthy development of critical disease insurance business for urban and rural residents, and protect their legitimate rights, the CIRC promulgated the "Interim Management Measures for Insurance Companies on Critical Diseases Insurance Business of Urban and Rural Residents ". In order to carry out critical diseases insurance business, the insurance companies shall meet the following conditions: The registered capital should not be less than RMB 2 billion, or the net assets during past three years should not be less than RMB 5 billion; a professional health insurance company is not included under these measures; The provisions on solvency management should be met. The solvency ratio at the end of the last year and the end of the last quarter should not be less than100% for professional health insurance companies, or 150% for other insurance companies; The company should continuously operate the special business on health insurance for more than 5 years, and have sufficient experience in health insurance operations and management; The company should operate according to laws and regulations, and have no serious violations in the past three years. A group insurance company can have no more than one subsidiary to carry out critical disease insurance business in each region; Insurance companies should carry out separate management of critical disease insurance. The headquarters of the insurance company should conduct and monitor critical disease insurance business centrally. Details of critical disease insurance products should be submitted to CIRC Life Insurance Supervision Department for its record. The policy term of critical disease insurance is one year; Insurance companies should consider maintaining a moderate level of profits from this type of product. CIRC regulates Bond Investment Plan In order to promote the innovative development of the bond investment plans and to improve the efficiency of supervision and transparency, according to Interim Provisions on Management to Infrastructure Bond Investment Plans ", "Interim Measures for Insurance Funds Investment in Immovable and other regulations, the issue of bond investment plans will be changed from the record keeping system to the registration system. During the Copyright 2012 Towers Watson. All rights reserved. towerswatson.com 5

6 transitional period, the China Insurance Security Fund Co., LTD will become the temporary registry and examine and approve each registration. CIRC regulates Investment Management Capabilities of Insurance Institutions CIRC issued the "Notice on Relevant Matters to Strengthen and Improve the Development of Insurance Investment Management Ability ". The investment management capacity of insurance institutions is divided into 7 categories by asset type, including stocks, unsecured bonds, equities, real estate t, product innovation on infrastructure, product innovation on real estate property and derivatives. The insurance institutions are required to record the capacity according to the provisions, and to implement license management to the above business when they are carrying out the relevant investment business. The notice optimizes and adjusts the corresponding matters on the development of investment capabilities: The insurance groups are allowed to integrate internal resources and build professional platforms for equity and real estate investments; The investment assessment procedures for equity and real estate are simplified in order to improve the quality of the assessment; The capability records are not required for purchasing self-used real estate or investment in insurance enterprises equity. The CIRC regulates Property & Casualty insurance companies telemarketing services Distribution Business written by insurance intermediaries (including insurance agencies, insurance brokers and insurance assessment institutions) reached RMB billion by the end of Insurance intermediaries operational income amounted to RMB billion, up by 20.4% compared with By the end of 2012, the numbers of insurance agencies, insurance brokers and insurance assessment institutions were 92,434 and 325 respectively. The total registered capital of insurance intermediaries increased to RMB billion, up by 45.2% compared with Insurance agency firms Insurance agency firms generated total premium income of RMB billion in Life insurance accounted for 24% and non-life insurance for the remaining 76%. The operational income from insurance agency firms reached RMB billion in Life insurance contributed RMB 3.04 billion, and non-life insurance contributed RMB 7.17 billion. Insurance brokers Premium income from insurance brokers reached RMB billion in Life insurance contributed RMB 6.50 billion, non-life insurance contributed RMB billion and reinsurance business contributed RMB 1.58 billion. Operational income from insurance brokers reached RMB 6.37 billion in Life contributed RMB 0.80 billion, nonlife contributed RMB 4.85 billion, reinsurance contributed RMB 0.12 billion and consulting business contributed RMB 0.60 billion. The CIRC released regulatory rules on telemarketing of Property & Casualty insurance companies to regulate and provide guidelines for telemarketing services. According to the new regulation, Property & Casualty companies have to the meet the following requirements: Supervise outbound telemarketing services and provide further management and training to employees; Strengthen management of customer databases and improve confidentiality of customer information; Proper disposal of phone numbers that have previously expressed no interest in buying insurance, and set up customer feedback and review system. Copyright 2012 Towers Watson. All rights reserved. towerswatson.com 6

7 assured selects the universal insurance rider, the benefits of the basic policy can be used to pay the rider s premium. Taikang Life has launched a participating annuity insurance product, which is the first participating annuity insurance launched via the web marketing channel. The product does not limit the amount of sum assured. The sum assured is paid from the agreed age to death with a guaranteed term of minimum 20 years. If the insured dies within 20 years, the remaining funds will be paid. Insurance assessment institutions Insurance assessment institutions generated operational income of RMB 1.57 billion in 2012, up 14.96% compared with Life insurance accounted for 0.6%, non-life insurance accounted for 95.6%, and other business accounted for 3.8%. Products Pramerica Fosun Life has launched a participating endowment insurance, which covers death and total disability risk. On the third policy anniversary date, a survival benefit of 18% of the sum assured is paid. After that, 6% of the sum assured is paid on each policy anniversary date until age 61. From age 61 to age 88, 12% of the sum assured is paid on each policy anniversary date. Premium terms include single, 5 years, 10 years, 15 years or 20 years. ICBC-AXA Life has launched an insurance package which has three policy periods to select from and provide security in the event of more than 40 diseases. If the insured suffers from the dread diseases covered by the contract, the insured can claim dread disease benefits up to 3 times. After the first critical disease claim, the premium for the remaining policy year will be waived. Old Mutual-Guodian Life has launched a universal whole life insurance product. There is no initial charge, so the premiums can all be invested into the personal account. In the first five policy years, the lowest annual interest rate for the personal account is 2.5%. From the sixth policy year, the lowest interest rate is the one-year after-tax deposit interest rate (not exceeding the maximum limit regulated by the CIRC). The surrender charge is 5%, 4%, 3% for the first three years and 0% thereafter. Sino Life has launched an annuity insurance package. For the basic insurance, 10% of the basic sum assured is paid on the first policy year anniversary date; After that, 5.5% of the effective sum assured is paid on each policy anniversary date until age 59; from age 60 to age 81, 10% of the effective sum assured is paid on each policy anniversary date; and the sum assured will be paid for maturity, death and disability. For the long-term care insurance, the sum assured is paid when it comes to the nursing stage described in the contract; if the insured survives to policy maturity and has not received any sum assured, the premium will be returned; the premiums will be waived if the insured reaches the nursing stage. When the Sunshine Life has launched a critical disease insurance product. The diseases covered range from 35 to 42, and additional coverage is provided for 10 types of light diseases. If the insured no longer needs critical disease coverage when they are older, the policy can be converted into an annuity policy. The target customers are from 30 days to 60 years of age. Customers can choose three payment periods of 5, 10 or 20 years, and additional insurance such as additional accidental injury, hospitalization expenses. China Life has launched a health insurance package which consists of an endowment policy and a health rider. It has single payment with a five-year policy period, and mainly sells through the bancassurance channel. Customers can receive 105% of the basic sum assured for death and diseases, 150% of the basic sum assured for accident death and 300% of the basic sum assured for air accident death. If the insured survives to policy maturity, the sum assured will be paid. Manulife-Sinochem has launched two critical disease insurance packages. For package A, customers can receive up to a total of 330% sum assured upon the diagnosis of a critical disease from up to three claims. It covers up to 40 main disease categories. If the insured survives to age 85 with no claims, 110% of sum assured will be paid. Package B includes all benefits in Package A, providing 110% of sum assured for accident death, and critical disease policy term changes from age 85 to whole life. If the insured is diagnosed with 10 diseases covered by the contract before age 70, a 20% extra sum assured will be paid. Generali China Life has launched a package which covers annuity, hospital expenses, light diseases, critical diseases, hospital benefits, premium waiver and other riders. If the insured dies before age of % of the sum assured is paid. After age 60, the life insurance converts into an annuity, and the sum assured keeps increasing until age 80. In addition, the premium will be waived when the insured has critical diseases, becomes disabled or dies. AVIVA-COFCO Life has launched a package with the following characteristics: fiveeducational payments when the child reaches 18, 19, 20, 21 years of age and on maturity; the package covers light diseases and critical diseases, including 28 -critical diseases and 10 light diseases that typically affect children,, 38 critical and 10 light diseases that typically affect adults; after the claims for light diseases, the sum assured is not reduced and the contract is still effective with death benefits and disability benefits; the premium terms vary; it provides dividends with compound interest. Copyright 2012 Towers Watson. All rights reserved. towerswatson.com 7

8 AVIVA-COFCO Life has launched a transportation accident insurance package. A large sum of compensation is paid for accidental death or total disability caused by driving or taking public transportation such as railway, buses, air, cars and so on. The premium paid is returned if the insured survives to the maturity. Premium can be paid monthly or annually with terms equal to 5, 10, 15 or 20 years and the benefit term is till age 70. Ping An P&C has released the first health insurance product for pregnant women. Women less than 12 weeks into pregnancy are eligible to purchase this product. It is designed to cover certain risks during pregnancy. This insurance product became available online on 1st January Personnel changes Zhang Ying ( 张 影 ) has been appointed General Manager of Sanguard Auto Insurance Co., Ltd. ( 鑫 安 汽 车 保 险 股 份 有 限 公 司 ) Zhang Hui ( 章 晖 ) has been appointed the Chief Actuary of Aeon Life Insurance Company, Ltd. Zhao Jianxin ( 赵 建 新 ) has been appointed the Chief Actuary of Sino Life Insurance Co., Ltd. Zhou Haobo ( 周 浩 波 ) has been appointed the Chief Actuary of Sinokorea Life Insurance Co., Chen Jingyao ( 陈 景 耀 ) has been appointed the Chairman of the Board China United Insurance Holding Company. Chen Lihua ( 陈 礼 华 ) has been appointed the General Manager of Union Asset Management Co., Ltd. ( 合 众 资 产 管 理 股 份 有 限 ) Chen Sen ( 陈 森 ) has been appointed the Chief Actuary of China Property Reinsurance Co., Ltd. Sean Deehan has been appointed the Chief Actuary of Heng An Standard Life Co., Ltd. Hong Bo ( 洪 波 ) has been appointed the Chairman of the Board of Tianan P&C Insurance Company Limited of China. Li Ke ( 李 科 ) has been appointed General Manager of Sunshine Insurance Group Corporation Limited. Li Xin ( 李 欣 ) has been appointed the Chief Actuary of China Reliable Property & Casualty Insurance Co., Ltd. Liu Mingguang ( 刘 明 光 ) has been appointed the Chairman of the Board of China Post Life Insurance Co., Ltd. Meng Xiaodong ( 孟 晓 东 ) has been appointed the Chairman of the Board of Nissay-Greatwall Life Insurance Co., Ltd. Teng Tieji ( 滕 铁 骑 ) has been appointed the Chairman of the Board of Sanguard Auto Insurance Co., Ltd. ( 鑫 安 汽 车 保 险 股 份 有 限 公 司 ) Wang Dexiao ( 王 德 晓 ) has been appointed the Chairman of the Board and General Manager of Sunshine Asset Management Co., Ltd. Wang ZhiYong ( 王 智 勇 ) has been appointed the Chief Actuary of China Post Life Insurance Co., Ltd. Yan Feng ( 严 峰 ) has been appointed General Manager of Hongkang Life Insurance Co., Ltd. Copyright 2012 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, Life 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