BIZCHINA / Finance
10th Five-Year Plan
Updated: 2006-04-18 10:13
In the total premium about 59.84 billion yuan came from property
insurance premiums -- an increase of 14.8 percent over the same period of
the year before and accounting for 37.5 percent of the total. The paid
insurance proceeds amounted to 30.59 billion yuan and the loss ratio was
51.1 percent. The expense ratio was 14.8 percent -- an increase of 0.2
percent over the same period of the previous year. The amount of
turned-in sales taxes was 5 billion yuan -- up 5.7 percent over the same
period of the previous year.
Life insurance premium revenue totaled 99.75 billion yuan, up 14.4
percent from the same period of the previous year and accounting for 62.5
percent of the total. The amount of reserves withdrawn was 280.28 billion
yuan. The paid insurance proceeds and indemnity amounted to 22.15 billion
yuan. The expense ratio was 6.8 percent -- an increase of 0.2 percent
over the same period of the year before. The amount of turned-in sales
taxes was 590 million yuan -- an increase of 23.5 percent compared to the
same period of the previous year.
Until the end of 2000, insurance companies' total assets in China reached
337.39 billion yuan -- an increase of 64.95 billion yuan from the
beginning of 2000. There were four State-owned insurance companies, nine
joint-equity insurance companies, 19 joint ventures and exclusively
foreign-owned insurance companies, 43 insurance agencies, eight insurance
brokerages and three insurance evaluation companies.
2. The development of Chinese insurance companies.
Until the end of 2000, China's invested insurance companies' total assets
amounted to 337.39 billion yuan. Property insurance premiums grew 11.9
percent compared to the same period of the previous year -- 1.5 percent
higher than the average annual growth rate over the last five years. At
the same time the loss ratio decreased 2.7 percent compared to the same
period of the previous year.
The structure of life insurance has been optimized step by step and the
operating quality has been significantly enhanced. All life insurance
companies have ceased their deficit insurance services and opened new
services, such as insurance connected with investment or dividends. The
insurance premiums of such account for 29.6 percent of the new policy
life-insurance premium. In general, profits of most life insurance
companies have been greatly increased.
All life insurance companies have taken positive measures to resolve
existing loss risks regarding the spread between interest rates. These
measures have been proven successful so far. The first measure involves
managing the sum budget by strengthening cost accounting and strictly
controlling expenses to compensate for losses resulting from the spread
of interest rates and economized expenses, as well as relieving pressures
from such losses.
The second measure is to lead customers to voluntarily change their high
pre-arranged-interest insurance policies to decrease the percentage of
high-interest insurance policies.
The third is to increase the return on investments by investing in
securities and funds and opening businesses for big-sum deposits with a
changeable interest rate. The total amount of money invested in
securities and funds amounted to 13.4 billion yuan in 2000, with an
increase of 11.38 billion yuan from a year earlier; the average yield
rate is 12 percent. The total amount of money used to open businesses for
big-sum deposits amounted to 41.67 billion yuan, with an increase of
40.57 billion yuan from a year earlier. The lowest interest rate for the
big-sum deposits of the five- to six-year term with a changeable interest
rate is 3.7 percent; the highest is 5.5 percent.
The fourth is based on different insurance types to account for profits
and losses by applying overall indexes, such as loss and expense ratios
to stop the deficit business immediately and to increase profits.
The fifth is to accelerate electronization to perfect the Intranet of
enterprises and improve management and working efficiency. Some insurance
companies have even opened new channels of sales and services, such as
online insurance and tele-direct sales services.
The sixth is the introduction of the ISO international standardization
system of quality certification that many companies have adopted to
regulate management and service.
The seventh is to set up customer service centers. The opening of a
national uniform hotline suggests that the traditional competitive
pattern is changing to a new pattern of service competition.
And finally, to establish the National Insurance Association to
strengthen self-discipline within the industry.
Some reforms and innovations have been carried out by Chinese insurance
companies to help meet market needs and to take part in competition.
The People's Insurance Company of China and China Life Insurance Company,
for example, have united their provincial branches and provincial capital
branches to simplify administration and strengthen development.
The separation of property and life insurance has been completed at the
China Pacific Insurance Company and the Xinjiang Construction Corps
Insurance Company.
The pluarlization and internationalization of equity interests at Tai
Kang Life Insurance Company and Xi Hua Life Insurance Company by
introducing foreign capital.
The reform of the human resource system: 8,000 staff members have been
reduced by the People's Insurance Company of China and 383 by China Life
Insurance Company, accounting for 10 and 0.8 percent of total staff
respectively.
Page: 1 2 3 4 5 6
(For more biz stories, please visit Industry Updates)
Most Popular Stories in 48 Hours
� BOC's public offering attracts HK citizens
� Foreign firms look to hotel sector
� Steelmakers to reject 19% iron ore hike
� Talks start over gov't contracts
� Boeing expects B747-8 success in Asia
Today's Top News
� Smuggler suspect Lai to be returned on May 26
� US limits using of Chinese computers
� Chairman Mao portrait up for auction
� 21 killed as typhoon hits S.China
� Pay rises by 16% for State sector workers
Top Biz News
� China bans import, export of endangered species
� China closes nearly 6,000 small mines
� UK offers aid to improve life in poorest areas
� Nation's first A380 pilot to receive training
� Export of fishery workers to Taiwan resumed
Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.
Learn mandarin
