China reports 6.4% rise in insurance premiums in H1
China’s insurance sector notched up 597.55 billion yuan (87.88 billion U.S. dollars) in premium revenue in the first half of this year, said an official from the China Insurance Regulatory Commission (CIRC).
The earnings showed an increase of 6.4 percent year on year, said Chen Wenhui, CIRC Chairman assistant, at a symposium on micro-insurance, which was held in Taiyuan, capital of north China’s Shanxi Province, from Tuesday to Wednesday.
Property insurance premiums rose 15.84 percent to 157.6 billion yuan, while life insurance premiums hit 439.95 billion yuan, up 3.34 percent year on year. Life insurance companies chalked up 11.58 billion yuan in net profits.
Low-income groups, including farmers, were becoming aware of the benefits of insurance and were active in taking out policies, said Chen.
Micro-insurance products are tailored for low-income people, as they require a relatively lower annual premium.
Micro or small-amount life insurance in rural areas first took off in August 2008 when China Life, a leading Chinese life insurer, piloted 12 micro insurance policy types against risks such as disease, death and disability to low-income farmers in nine provinces.
Farmers could buy life insurance policies priced at 17 yuan to 26 yuan annually for coverage of around 20,000 yuan per policy.
Another nine provinces were added to China Life’s experimental program in May, said Wan Feng, China Life president.
Wan said China Life had insured 6.03 million farmers in the 18 provinces, taking in 138 million yuan in premiums.
There were also other micro-insurance products specifically targeting different sectors, such as planting, livestock breeding, farm machinery and farmers’ household property, as well as micro-medical insurance and insurance against micro-loan, a practice adopted in rural areas to provide financial products there.
Dong Bo, deputy chief of property insurance supervisory department of CIRC, said insurance companies in China were offering more than 160 kinds of agricultural insurance, covering crops, livestock, farm machinery and rural houses.
The micro insurance workshop, sponsored by CIRC and the International Association of Insurance Supervisors, was attended by officials and company executives from countries including Germany, India, South Africa, Brazil, the Philippines, Switzerland, and representatives from international organizations such as the World Bank, the UN World Food Program and the Asian Development Bank.
Tags: China Finance, China-Life, CIRC, Insurance