Children Insurance Market Bears Strong Potential

 

Tuesday, Nov 24,2009, 10:14:32 AM   Click:

In terms of the demand for children insurance by Chinese urban residents, such insurance only follows the health insurance and pension insurance, ranking as the No.3.

Currently, the premiums from the children insurance contribute about 15% to an insurer's total premiums. In developing the children insurance products, insurers often design these four kinds of insurance products, namely the accident insurance, medical insurance, education insurance and wealth management insurance.

With the increase of Chinese people's incomes, the children insurance market is expected to expand further. However, the rural market still needs more attention compared to the urban market. The design of the children insurance products for the rural market shall be as simple as possible and the function of guarantee shall be emphasized when developing such insurance products for rural market. In order to minimize the price, the children insurance products for the rural area shall focus on the dread disease insurance and the medical insurance, with the education insurance as the supplement.

Several pension insurers in China's business hub Shanghai are coveting local corporate annuity market. As the biggest local corporate annuities, the corporate annuities in Shanghai have a size of CNY 18.6 billion. Changjiang Pension Company currently is the sole trustee of the CNY 18.6 billion corporate annuities, which cover 750,000 persons and 5,000 enterprises. Such pension insurers as China Life Pension Company Limited, Ping An Annuity Company Limited and Taiping Pension Company are eyeing the big cake. Actually, China Life Pension has already taken over about CNY 300 million corporate annuities of a large state-owned group from Changjiang Pension.

In terms of the payment of new incremental corporate annuities during the first half of 2009, Ping An Annuity realized CNY 4.8 billion as the No.1, followed by CNY 3.5 billion of China Life Pension. Currently, the corporate annuities can be invested in bank deposits, treasury bonds and other financial instruments with good liquidity. Once the policy permits, pension insurers in China's Mainland will have a wider range to make investment with the corporate annuities.

Shanghai-based China Pacific Insurance (Group) Co. (CPIC, 601601.SH) has already become the controlling shareholder of Changjiang Pension. At present, the pension insurers is recruiting talents specialized in the corporate annuity investment, to further enlarge the market share.