News Center

1-2 July, 2006, CIRC life insurance supervision forum was held in Beijing. The vice-president Wei Yingning delivered an important speech, the CIRC Beijing Bureau exchanged the typical experiences and the president assistant Chen Wenhui summarized the meeting in the end.

The meeting indicates that in the first half year of 2006, the smooth progress of the program “three ONE” creates a favorable environment for the development of insurance industry and alleviates the external shock brought by the factors such as stock market rebound. The continuously launched regulatory initiatives increase effectively the business quality and economic benefits and grasp the rhythm of development. The life insurance market is generally well developed and realize the organic unity of speed, quality and effectiveness.

The premium of life insurance during January to May reaches 187.12 billion yuan, an increase of 13.97% compared to the same period of last year; except the big amount premium of Sino-Italian Life Insurance, an increase of 27.65% compared to the same period of last year, maintain a stable and rapid growth; life insurance investment income increases greatly, and have more power to improve the business effectiveness; in 2005, China Life Insurance Company and Ping An listed company realized respectively profits of 9,306 billions and 4,265 billions, an respective increase of 29.77% and 35.6% compared to the same period of last year, it is predicted that this year will continue to maintain the same development momentum. The structure of the individual insurance business has been basically adjusted, as of May 31, China Life Insurance Company, whose structure adjustment mission was the heaviest, realized 40,740 billions in terms of premiums of the individual insurance and permanent insurance, an increase of 13.2% compared to the same period of last year. For the first-year premium revenue of 14,060,000,000 yuan, the regular premium reached 11,330,000,000 which occupied 88.26%, an increase of 31.3% compared to the same period of last year. From January to May, bank insurance activities reach 85.59% in terms of the growth rate, far higher than other channels and occupy 32.3% of all activities, which offers the best moment for the regulation of the bank insurance order and adjustment of the bank insurance structure of this year. The problems of the group insurance are more complicated, they should be the next main focus and be resolved.

It is demanded in the meeting that we should study and implement the , take good advantage of the policy support, lead the life insurance industry to resolve the three prominent problems: product innovation, cost control and honesty construction, and promote the rapid and stable development of the industry. Specific performance in four areas: firstly, prevent the risk, have the keen sense of market, detect, track and analyze the potential risks, try to solve the problem at the very beginning and report timely the grave problems; secondly, maintain a certain speed, ensure the unification of speed, quality and effectiveness, continue to promote and improve the adjustment of individual insurance structure, seize the opportunity to strengthen the standard development and structure adjustment of the bank insurance, pay close attention to the group insurance, make the endeavor to keep sound development momentum in the second half of this year; thirdly, expand continuously the field of life insurance service, continue to promote the companies’ participation in the business fields such as the new rural cooperative medical insurance program, land requisitioned farmers’ old-age insurance and migrant workers insurance, nurture and protect the rural life insurance market and promote the typical examples; finally, pay attention to the long-term task of the honesty construction, make more efforts to crack down the misleading, ensure the standardization construction of underwriting and claims, improve the image of the industry and establish the consumers’ confidence. Meanwhile, through the site inspection, internal control and national video training, we should enhance the self construction of the life insurance supervision team and improve the abilities and supervision level of the staff.