Personal Accident and Health Insurance in China, Key Trends and Opportunities to 2016: Focus to Achieve Universal Health Insurance Will Drive Market Growth

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					Personal Accident and Health
Insurance in China, Key Trends
and Opportunities to 2016: Focus
to Achieve Universal Health
Insurance will Drive Market
Growth
Market Intelligence Report

Reference code: IS0007MR

Published: January 2012

www.timetric.com
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                             www.timetric.com
 EXECUTIVE SUMMARY




1 Executive Summary

        The Chinese personal accident and health insurance market is among the top ten markets of its kind in
        the world. The market registered strong growth during the review period, which can be attributed to key
        growth drivers such as the country‘s aging population, robust economic growth, rising disposable
        incomes and increased awareness of the need for insurance, especially among younger people. The
        health insurance market is expected to experience strong competition for market share between
        domestic and foreign insurance companies over the forecast period.

        Strong growth reported over the forecast period

        The market size of the personal accident and health insurance segment is expected to increase from
        RMB145.7 billion (US$22.5 billion) in 2011 to RMB335.6 billion (US$51.85 billion) in 2016, at a CAGR of
        18.2% over the forecast period. The number of personal accident and health insurance policies sold is
        expected to increase from 1.16 billion in 2011 to 2.01 billion in 2016, at a CAGR of 11.7%. This growth
        will be mainly driven by the availability of a wider range of insurance products, better penetration of
        distribution channels selling insurance products, and China‘s rising disposable income levels due to the
        country‘s strong economic growth and changing demographics, along with an overall increase in the
        working population.

        Changes in health insurance product offerings

        Some health insurers are becoming more realistic in their product pricing and more selective in their
        choice of risk. Insurers are also offering more products on a regular-premium policy basis, as opposed to
        a single-premium policy, in which a single lump sum is paid to the insurer. This trend follows the
        guidelines placed by the Chinese government to increase the coverage of health insurance.

        Significant investments made by the Chinese government

        The Chinese government has made conscious efforts to increase the coverage of health insurance in
        China, and by 2020 it aims to cover the entire Chinese population. The Chinese government has
        encouraged private companies to help improve the country‘s healthcare system, and unveiled a plan to
        completely overhaul the healthcare industry, offering better healthcare provision. The government has
        continued to introduce healthcare improvement plans, such healthcare insurance for children in rural
        areas and increases in healthcare monetary compensation. The government is also currently planning
        several new schemes to increase compensation for families affected by natural disasters in the country.




Personal Accident and Health Insurance in China, Key Trends and Opportunities to 2016:
                                                                                                                    Page 2
Focus to Achieve Universal Health Insurance will Drive Market Growth

© Timetric. This product is licensed and is not to be photocopied                                 Published: January 2012
 TABLE OF CONTENTS



TABLE OF CONTENTS

1      Executive Summary .............................................................................................................. 2
2      Introduction ......................................................................................................................... 12
    2.1 What is this Report About? ..............................................................................................................12
    2.2 Definitions .......................................................................................................................................12
    2.3 Methodology ...................................................................................................................................14
3      Chinese Insurance Industry Attractiveness ...................................................................... 16
    3.1 Insurance Industry Size, 2007–2016 ...............................................................................................17
    3.2 Key Industry Trends and Drivers .....................................................................................................21
        3.2.1     Business drivers ....................................................................................................................................... 21
        3.2.2     Consumer drivers ..................................................................................................................................... 22
    3.3 Recent Market Developments .........................................................................................................23
4      Personal Accident and Health Insurance Market Outlook ............................................... 24
    4.1 Personal Accident and Health Insurance Growth Prospects by Category ........................................25
        4.1.1     Personal accident category market size, 2007–2016 ............................................................................... 49
        4.1.2     Travel insurance category market size, 2007–2016 ................................................................................. 53
        4.1.3     Health insurance category market size, 2007–2016 ................................................................................ 57
        4.1.4     Non-life health insurance sub-category market size, 2007–2011 ............................................................ 60
        4.1.5     Life health insurance sub-category market size, 2007–2011 ................................................................... 64
5      Analysis by Distribution Channels .................................................................................... 68
    5.1 Direct Marketing Channel Market Size, 2007–2016.........................................................................70
    5.2 Bancassurance Channel Market Size, 2007–2016 ..........................................................................78
    5.3 Agencies Channel Market Size, 2007–2016 ....................................................................................86
    5.4 Other Channels Market Size, 2007–2016 ........................................................................................94
6 Regulatory Policies ........................................................................................................... 102
7 Porter’s Five Forces Analysis – Chinese Personal Accident and Health Insurance
Market ....................................................................................................................................... 103
    7.1 Bargaining power of supplier: low ..................................................................................................103
    7.2 Bargaining power of buyer: low to medium ....................................................................................103
    7.3 Barriers to entry: medium to high ..................................................................................................104
    7.4 Intensity of rivalry: medium to high ................................................................................................104
    7.5 Threat of substitutes: low ..............................................................................................................104
8      Reinsurance Growth Dynamics and Challenges ............................................................ 105
    8.1 Reinsurance market size, 2007–2016 ...........................................................................................106
    8.2 Reinsurance market size by type of insurance, 2007–2016 ...........................................................110
9      Competitive Landscape and Strategic Insights .............................................................. 115
    9.1 Overview .......................................................................................................................................115
    9.2 Leading Companies in the Chinese Personal Accident and Health Insurance Market ...................115


Personal Accident and Health Insurance in China, Key Trends and Opportunities to 2016:
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Focus to Achieve Universal Health Insurance will Drive Market Growth

© Timetric. This product is licensed and is not to be photocopied                                                                              Published: January 2012
 TABLE OF CONTENTS



  9.3 PICC Health Insurance Company Limited – Company Overview ..................................................117
      9.3.1      PICC Health Insurance Company Limited – key facts ........................................................................... 117
      9.3.2      PICC Health Insurance Company Limited – main products ................................................................... 117
      9.3.3      PICC Health Insurance Company Limited – main competitors .............................................................. 117
      9.3.4      PICC Health Insurance Company Limited – key employees .................................................................. 118
  9.4 Minsheng Life Insurance Co. Ltd – Company Overview ................................................................119
      9.4.1      Minsheng Life Insurance Co. Ltd – key facts.......................................................................................... 119
      9.4.2      Minsheng Life Insurance Co. Ltd – main products ................................................................................. 119
      9.4.3      Minsheng Life Insurance Co. Ltd – main competitors ............................................................................ 119
      9.4.4      Minsheng Life Insurance Co. Ltd – key employees ................................................................................ 120
  9.5 Union Life Insurance Co., Ltd. – Company Overview ....................................................................121
      9.5.1      Union Life Insurance Co., Ltd. – key facts .............................................................................................. 121
      9.5.2      Union Life Insurance Co., Ltd. – main products ..................................................................................... 121
      9.5.3      Union Life Insurance Co., Ltd. – main competitors ................................................................................ 121
      9.5.4      Union Life Insurance Co., Ltd. – key employees .................................................................................... 122
  9.6 Sun Life Everbright Life Insurance Co. Ltd. – Company Overview ................................................123
      9.6.1      Sun Life Everbright Life Insurance Co. Ltd. – key facts ......................................................................... 123
      9.6.2      Sun Life Everbright Life Insurance Co. Ltd. – main products ................................................................. 123
      9.6.3      Sun Life Everbright Life Insurance Co. Ltd. – main competitors ........................................................... 123
  9.7 Guohua Life Insurance Co., Ltd. – Company Overview .................................................................124
      9.7.1      Guohua Life Insurance Co., Ltd. – key facts .......................................................................................... 124
      9.7.2      Guohua Life Insurance Co., Ltd. – main products .................................................................................. 124
      9.7.3      Guohua Life Insurance Co., Ltd. – main competitors ............................................................................. 124
  9.8 CITIC-Prudential Life Insurance Company Limited – Company Overview .....................................125
      9.8.1      CITIC-Prudential Life Insurance Company Limited – key facts .............................................................. 125
      9.8.2      CITIC-Prudential Life Insurance Company Limited – main products ..................................................... 125
      9.8.3      CITIC-Prudential Life Insurance Company Limited – main competitors ................................................ 125
      9.8.4      CITIC-Prudential Life Insurance Company Limited – key employees .................................................... 126
  9.9 Aviva-COFCO Life Insurance Company Ltd – Company Overview ...............................................127
      9.9.1      Aviva-COFCO Life Insurance Company Ltd – key facts ........................................................................ 127
      9.9.2      Aviva-COFCO Life Insurance Company Ltd – main products ................................................................ 127
      9.9.3      Aviva-COFCO Life Insurance Company Ltd – main competitors ........................................................... 127
      9.9.4      Aviva-COFCO Life Insurance Company Ltd – key employees .............................................................. 128
10 Business Environment and Country Risk ....................................................................... 129
  10.1 Business Confidence ....................................................................................................................129
      10.1.1 Business confidence index ..................................................................................................................... 129
      10.1.2 Market capitalization trend – Shanghai stock index, China .................................................................... 130
      10.1.3 FDI inflow by industry ............................................................................................................................. 131
      10.1.4 Deployment of credit ............................................................................................................................... 132
  10.2 Economic Performance .................................................................................................................133
      10.2.1 GDP at constant prices (US dollars)....................................................................................................... 133


Personal Accident and Health Insurance in China, Key Trends and Opportunities to 2016:
                                                                                                                                                            Page 4
Focus to Achieve Universal Health Insurance will Drive Market Growth

© Timetric. This product is licensed and is not to be photocopied                                                                       Published: January 2012
 TABLE OF CONTENTS



      10.2.2 GDP per capita at constant prices (US dollars) ...................................................................................... 134
      10.2.3 GDP at current prices (US dollars) ......................................................................................................... 135
      10.2.4 GDP per capita at current prices (US dollars) ...............................................................................
				
DOCUMENT INFO
Description: The Chinese personal accident and health insurance market is among the top ten markets of its kind in the world. The market registered strong growth during the review period, which can be attributed to key growth drivers such as the country’s aging population, robust economic growth, rising disposable incomes and increased awareness of the need for insurance, especially among younger people. The health insurance market is expected to experience strong competition for market share between domestic and foreign insurance companies over the forecast period.
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