Internet Insurance Observer: Today Highlights|January 20, 2016

Insurance Parity Platform "EasyInsurance" Completed Round A Financing of RMB 50 Million, Invested by Sina

In April 2015, EasyInsurance completed RMB 50 million Round A Financing, invested by Sina. Thefund is mainly used for research and development, market and brand building.Easy Insurance website was formally launched in October 2014 as the firstwebsite which realizes precise auto insurance parity. Easy Insurance, via itsAPP, Wechat public account, offers users with auto insurance parity, expertadvice, online purchase and other one-stop price comparison services.

CIRC Convene A Meeting With 7 Insurance Firms WithIntention To Overall Limit High Cash Value Insurance Products With A Term LessThan 3 Years  

China InsuranceRegulatory Commission today (January 20) convenes a forum discussing amendmentto regulations on high cash value insurance product. The meeting was attended byinsurers including China Life Insurance, New China Life, PICC Life Insurance, Sino-LifeInsurance, China Post Life Insurance, Huaxia Life Insurance and Tianan LifeInsurance. It is requested that new insurance product with a term less than3-year shall no longer be developed and sales of the said product will be forbiddenfrom 1st October 2016. As from the date of the notice, it is notpermitted to sell products with term less than 1 year, such as 3-months termproduct and 6-months term product.

Insurance Firms Invest More Than RMB 200 BillionInto Creditor Plan To Increase Investment In Infrastructure Construction

The impact ofasset allocation shortage resulted from interest rates downturn and stockmarket’s violent fluctuation spreads to the insurance industry. In order toachieve a high return on investment, insurance firms are increasing investmentin infrastructure and real estate creditor plans. In 2015, the scale of registeredinfrastructure and real estate creditor plans of insurance firms totaled over RMB200 billion, accounting for 91.7% of the whole value of registered products.

Coverage of Guidelines on Internal Control OverUse of Insurance Capital To Be Expanded, Deposit Turns to Insurance Capital Trendwill Continue

Followingintroduction of guidelines on internal control over use of insurance capital,other guidelines on internal control over real estate investment, equityinvestment, insurance asset management products, financial derivatives andother insurance investment products are expected to be launched soon. Theinsurance companies are required to submit external audit reports before April30, 2016 with a purpose to provide a sound scientific basis for the use of insurancefunds and improve internal control.

McKinsey Review China's Life Insurance Industry: ADouble-Digit Growth Will Be Regained In The Next Five Years

World-renownedconsulting firm McKinsey yesterday released a weighed view on Chinese lifeinsurance market after a series of survey: China's life insurance industry willwelcome a historic turning point in the next five years, regain a double-digitgrowth and will become the main engine of the global insurance industry. In theprocess three areas has tremendous business opportunities – emerging urbanizedmiddle class, medical and health insurance and retirement plans. Those who canseize the opportunity and who value the importance of liability risk managementcapabilities will stand out to be winners.

In 2015 Insurance Capital Bid for Listed Companyon Stock Market Reached RMB 125.7 Billion with Floating Profit of 13.75%

Insurancecapital in 2015 used RMB 110.475 billion to bid for listed company on the stockmarket for 31 times for a total of 6.789 billion shares which have market valueof RMB 125.669 billion. The capital used for the bidding in general has a floatingprofit RMB 15.194 billion with floating profit ratio of 13.75%. Among the 31times of bidding, 17 biddings have dropped to below the estimated cost,accounting for 54.84%; 8 biddings suffered estimated floating deficit of morethan 10%; 5 biddings are estimated to suffer floating deficit of more than 20%;, the total insurance capital locked up reached RMB 20.161 billion.

6 Listed Insurance Companies Saw Overall IncreaseIn Original Premium Income

6insurance firms in 2015 have achieved YOY growth of premium income. Data showthat Xinhua Life Insurance achieved the original insurance premium income of RMB111.859 billion in 2015, an increase of 1.81% compared with 2014; China LifeInsurance gained RMB364.1 billion of the original insurance premium income, up 9.93%from 2014. Ping An Insurance brought in RMB 163.641 billion of original premiumincome, an increase of 14.55% from 2014; Ping An Life Insurance gained RMB 208.448billion of original insurance premium income in 2015, up 19.8% from 2014. ChinaPacific Insurance last year had life insurance premium income of RMB 108.589billion, grew by 10.03% compared to 2014. Chinese reinsurance business deliveredan increase of 18.92% from RMB 22.358 billion in 2014.