China market opportunities for foreign insurance companies under the new opening-up policies
June 2020 Brochure / report title goes here | Section title goes here
1. Foreign insurers continue to embrace new opportunities as China accelerates the opening-up of its financial sector 2 2. The China insurance market has significant growth potential, compared to more developed markets 5 3 . K e y c o n s t r a i n t s f o r f o r e i g n i n s u r a n c e c o m p a n i e s ' m a r k e t d e v e l o p m e n t i n C h i n a 7 4. Possible paths for foreign insurers to enter or re-enter the China market 9 5. The next three to five years will be the critical period for foreign insurers to develop their foothold in the China market 13 Contacts 15 Endnotes 16
This report only covers insurance products and institutions for general consumers 2 hi r et opportu ities or oreig i sur ce co p ies u er the e ope i g up policies
1. Foreign insurers continue to embrace new opportunities as China accelerates the opening-up of its financial sector
Since the 1990s, close to 50 foreign restrictions, which limit the percentage market shares of 73.5% and 85.2% insurers have entered the China of foreign ownership and the rate respectively (Table 1). No single foreign market, predominantly in the form of branch expansion. By the end of or Sino-foreign joint venture insurer of joint ventures (JVs). However, the 2018, the top 10 life- and non-life (in both life and non-life insurance) scale of these ventures has been insurance companies in China were accounted for more than 2% market relatively small due to regulatory all Chinese controlled, with combined share.
Table 1: China life and non-life insurers ranked by 2018 primary premiums
Life Insurers Non-life Insurers
Type Rank Company Mkt Share Type Rank Company Mkt Share
1 China Life 20.4% 1 PICC 33.0%
2 Ping An 17.0% 2 Ping An 21.0%
3 CPIC 7.7% 3 CPIC 10.0%
4 Huaxia 6.0% 4 China Life 5.9%
Chinese 5 Taiping 4.7% Chinese 5 China Continent 3.6% Enterprise Enterprise 6 New China 4.7% 6 China Insurance 3.6%
7 Taikang 4.5% 7 Sunshine 3.1%
8 PICC 3.6% 8 Taiping 2.1%
9 Funde Sino Life 2.7% 9 China Export & Credit 1.7%
10 Tian An 2.2% 10 Tian An 1.3%
Sino-foreign JV 16 ICBC-AXA 1.3% Sino-foreign JV 16 AXA Tianping 0.5%
Note: life insurers refer to the companies whose business scope cover life insurance, health insurance and/or pension insurance. Non-life insurers refer to those covering property and casualty (P&C) insurance. Source: China Banking and Insurance Regulatory Commission (CBIRC)
2 China market opportunities for foreign insurance companies under the new opening-up policies
However, since 2019, the competitive wholly foreign-owned insurance holding (CBIRC) has issued a series of new dynamics in the insurance market have company2 since China joined WTO. policies which will allow foreign been changing, as China continues AXA completed the acquisition of the insurers to more easily enter the asset to ease market access restrictions on remaining 50% stake in AXA-Tianping management sector8: foreign insurance companies. which has become the largest wholly • Foreign ownership caps have been foreign-owned property and casualty removed, and the same standards There are three key changes in the new insurance company in China3. HSBC has now apply to both domestic and opening-up measures: reached an agreement with its partners foreign owned companies. The in China to acquire the remaining 50% • First, removing the requirement restriction that “domestic insurance stake in HSBC Life4. Chubb Limited that the foreign insurers must have companies shall hold no less than is seeking majority control of its operated for at least 30 years before 75% of the total shares of insurance investment, having already gained entering the China market; assets management companies” approval to increase its shareholding has been abolished, allowing foreign • Second, removing any ownership in Huatai Insurance Group from 25% investors to hold more than 25% caps on foreign insurance companies to 30%5. Insurers such as Prudential of the shares with no upper limit. in a Sino-foreign JV, allowing for 100% plc, Generali and Manulife have their Overseas financial institutions can foreign-owned entities; eyes on China's large pension market now directly establish or invest in a and have already started preliminary • Third, abolishing any rules on branch pension fund management company. establishment and management that negotiations with relevant authorities to 6 • Furthermore, the Interim Measures specifically apply to foreign insurers. enter the market . for Insurance Assets Management This means the rules and regulations Products became effective on May for foreign owned insurance According to Sina.com, in 2019, the 1, 2020, allowing insurance asset companies are the same as the ones premium income from foreign or management products to be sold to for domestic owned companies1. Sino-foreign JV insurance companies in China increased by 29.9% year-on-year eligible natural persons. This aligns the insurance asset management Since the new measures were rolled (YoY), more than doubling the 12.2% business scope and model with out, a number of foreign insurance growth experienced by domestic other asset management companies. companies have sought to increase owned insurers. The total market Insurance asset management their shareholding percentages in share of foreign/joint venture insurers companies can appoint other their existing joint ventures in order increased by 1% to 7.2%. With the full financial institutions to sell their to become the majority shareholders. implementation of the less restrictive products, or sell the products by Other foreign insurers are setting market access policies, the market themselves. These policies have up new wholly- or majority-owned share of foreign insurance companies 7 paved the way for foreign insurers insurance institutions in China through is expected to further increase . to develop their asset management acquisitions, new joint ventures or business in China. new strategic partnerships (Figure 1). In addition to the aforementioned In 2019, Allianz announced that it had policy reform, the China Banking and been approved for setting up the first Insurance Regulatory Commission
3 hi r et opportu ities or oreig i sur ce co p ies u er the e ope i g up policies
Figure 1: Important policies and key milestones for foreign insurance companies in China (1992~2020)
Key Milestones: Opening-up Policies Foreign Insurance Companies In China 1992 Interim Administrative Measures of Foreign Insurance The People's Bank of China grants approval for AIA to Companies in Shanghai establish a branch in Shanghai Starting-up • People's Bank of China publishes relevant regulations to • Types of insurance: life supervise AIA • The first wholly foreign-owned life insurance branch 2002 Regulations on Foreign Insurance Companies - the first China joins the WTO. New York Life (USA), Metropolitan formal regulation (USA), and Nippon Life (Japan) obtain Chinese insurance • Allows foreign ownership for life insurance JVs up to 50% license ownership • Type of insurance: life • Limits business scope and regions for non-life insurance JVs 2004 Detailed Implementing Rules on Administration of Foreign 14 foreign insurance companies account for 2.3% of total Insurers in China premium income • Requires that applicants must have more than 30 years of insurance experience, with a representative office set up in China at least 2 years ago prior to the submission of the application • Allows foreign-invested non-life insurance branches to be converted to WOFE Growing • Cancels regional restrictions 2018 April, 2018 - Notice on Expanding the Business Scope for November, 2018 - Allianz receives CBIRC approval for Foreign Insurance Brokers and Agents establishment of a wholly foreign-owned insurance • Allows foreign insurance brokers and agents to cover the same company business scope as their Chinese peers • Types of insurance: life, non-life
May, 2018 – Administrative Measures on Foreign Insurance November, 2018 - AXA announces it will acquire the Companies (draft) remaining 50% stake in AXA-Tianping, becoming the • Allows foreign ownership of life insurance JVs up to 51% largest wholly foreign-owned P&C insurer in China • Type of insurance: non-life
May-July, 2019 – CBIRC announced its plan to release 19 March, 2019 – Heng An Standard Life is granted approval to 2019 policies to further open up the market develop pensions insurance • Advances the transition period for removing foreign ownership • Type of insurance: life caps in foreign-invested life insurance companies to 2020
October, 2019 – Amendment of the Regulations on August, 2019 – CBIRC approves AXA to take full ownership Administration of Foreign Funded Insurers of AXA-Tianping • Eases the entry conditions for foreign insurance companies • Type of insurance: non-life by removing the requirement that “they must have more than 30 years’ experience in insurance business, with a representative office set up in China at least 2 years ago prior to the submission of the application” 2020 December, 2019 – No tice on Clar i fi ca tion of the Time frame October, 2019 – ERGO (Germany) and Great Wall Motors for the Can cel la tion of For eign Own er ship Re stric tions on (China) sign a JV for auto mobility insurance JV Life In sur ers • Type of insurance: non-life • Foreign ownership restrictions on life insurance JVs is relaxed,
Developing allowing 100% foreign ownership, starting from 1 January 2020 November, 2019 – Chubb purchases an additional 15.3% stake in Huatai, increasing shareholding to 46.2% December, 2019 – Amendment on Administrative • Types of insurance: life, non-life Measures on Foreign Insurance Companies • The terms for local insurance companies are now equally January, 2020 – Allianz (China) Insurance Holding Co. Ltd applicable to foreign companies launches in Shanghai • Types of insurance: life, non-life
January, 2020 – AIA announces its intention to convert its Shanghai branch into a wholly foreign-owned life insurance subsidiary • Type of insurance: life
Source: CBIRC
4 China market opportunities for foreign insurance companies under the new opening-up policies
2. The China insurance market has significant growth potential, compared to more developed markets
In terms of market size, China has dollars9, surpassing other major income represented only 4.4% of grown into the world's second-largest insurance markets, including Japan, GDP in 2019, still far behind those of insurance market after the United Britain, France and Germany. However, developed markets (Figure 2). States. In 2019, China's annual in terms of insurance penetration, premium income reached 0.63 trillion China's total insurance premium
Figure 2: Total premiums by country/region in 2019 (unit: $100 million)
1414 035,035
66 283,283
44 141,141 3 040 3,040 2 478 2 251 2,478 2,251 1 806 1,270 1,220 1,806 11 501,501 1 270 1 220
.S ainlan apan .K France ermany South taly Cana a Taiwan China Korea Insurance Penetration 6.5% 4.4% 8.2% 10.8% 9.2% 5.9% 10.9% 7.6% 7.5% 20.0%
Source: CBIRC, Fitch Solutions, Deloitte Internal database
The gaps between China and 4.2 insurance policies per capita in Less product choice compared to developed insurance markets could be the United States and 6.5 insurance developed markets. In developed broadly attributed to three aspects: policies per capita in Japan. However, markets, consumers have a wide range the per capita insurance policy rate of insurance products available to Insurance awareness has in China is only about 0.6, which them, covering all aspects of their daily historically been low, resulting in translated to far less than 1 policy per live. For example, when purchasing lower levels of coverage. There are capita10. a property, in addition to the basic
5 hi r et opportu ities or oreig i sur ce co p ies u er the e ope i g up policies
housing insurance, customers can higher insurance coverage than With a growing middle class and rising also buy personal property insurance, customers' risks may actually need, awareness of the need and purpose personal umbrella insurance11, flood resulting in significant gap between the of insurance, Chinese consumers' insurance and home loan insurance. actual, viable claims and customers' demand for better insurance products There are also insurance products expectations. In developed markets, and services will increase further. covering home appliances and insurers provide more comprehensive The accelerated opening-up of the furniture purchases, pet insurance training and implement a stricter financial sector has further energized and an array of other products. Many protocol on sales and distribution the insurance sector in China. of these products are becoming teams. As a result, sales agents are Competition from foreign insurers will increasingly available but in concept not only able to provide professional push domestic insurers to learn from are still new to Chinese consumers. services, but can also customize global best practices, and better shape services based on customer's China's insurance industry in terms of Sales channels and customer protection and saving needs such as corporate governance, risk pricing and services are not well developed. offering family protection, medical investment management. This will help Most domestic insurers heavily rely on care, annuity, pension and investment. bridge the gap between China and agent based distribution systems, and In recent years, CBIRC has issued more developed insurance markets. do not provide base salaries to their stricter quality regulations for the agents, meaning their compensation insurance workforce, leading to some is derived purely by commissions. In visible improvements; however, there is order to maximize their sales, sales still significant room for improvement. practices may potentially produce
6 China market opportunities for foreign insurance companies under the new opening-up policies
3. Key constraints for foreign insurance companies' market development in China
There have been two long-standing criteria before their applications obtained, the wider the business barriers for foreign insurance are accepted. The different types of scope can be, but the longer it takes companies doing business in China: insurance licences in China include: to apply. Currently, the entire process life, health, pension/annuity, P&C can take at least two years from license First, obtaining the required (property insurance, liability insurance, application submission to regulatory insurance licenses. In China, all credit insurance, etc.), reinsurance and review, to license approval and finally insurers are required to apply for an internet insurance (internet insurance's approval for opening the business insurance license from CBIRC before scope is limited to P&C and short- (Figure 3)12. starting their operations. Companies term health insurance) licenses. For a need to meet certain qualification foreign firm, the more types of licenses
Figure 3: Insurance license application and business opening approval processes for foreign insurance companies in China
1 2 Insurance license application Business opening approval
Establishment requirements： Year-end total assets must exceed US$5 billion prior to the application. The country of the applicant has a mature supervision system. The applicant has been Application Application The applicant should submit documents with detailed effectively supervised and meets solvency standards. company information. The applicant should obtain approval from their country. They may be required to fulfill other prerequisites.
CBIRC will undertake on-site inspections to ensure CBIRC will review and approve/reject within 6 months insurers have put in place effective internal controls. The from the date of receiving the application. The applicant applicant must report the status of their preparation Approval On-site will receive formal application forms if approved. work and demonstrates underwriting and claims Inspections process.
The applicant must complete the preparatory work (for Business Opening Approval) CBIRC will review and approve/reject within 60 days Preparing Approval within one year of receiving the formal application forms from the date of receiving the application. (they can apply for a 3 month extension if needed).
Source: CBIRC
7 hi r et opportu ities or oreig i sur ce co p ies u er the e ope i g up policies
The new opening-up measures have level business check, and then apply to However, as of today, these joint not yet fully gone into effect, so it is the provincial Banking and Insurance ventures have only generated few too early to fully assess their impact on Regulatory Commission to set up local successful cases. The main reason the insurance license application and branches and sales offices13. Past behind these difficulties has been approval process. Already, though, of cases suggested that the process could the ownership caps. Restricted to no the 36 approvals granted by the CBIRC require at least 3-5 years' preparation more than 50% shareholding in joint in 2019 (including license issuance, time if the insurers plans to open ventures, foreign insurers have faced ownership changes, and registered business in more than 10 provinces. significant challenges managing the capital changes), 15 cases were related JVs. Often, the foreign shareholder to foreign insurance companies. A Second, building nationwide sales appoints the CEO or general manager local Chinese media source, Securities channels. For foreign insurers with while the Chinese shareholder China, recently commented that no existing presence/partnership in appoints the chairman, and in some foreign insurers have been enjoying China, it would take at least 3-5 years cases the two shareholders rotate the "super-national treatment" when it and significant investment to build a leadership and management every comes to application approvals. There direct sales/agent network that covers few years. This has made it difficult is speculation that applications and multiple provinces. for the joint ventures to formulate a approvals may be further expedited consistent and sustained business for qualified foreign insurers in the The first group of foreign market strategy. Under these conditions, next few years. After obtaining the entrants in China tried to overcome any disparity in business vision, risk insurance licenses, insurers need to these long-standing barriers by management, resource allocation, and meet regional regulatory requirements setting up JVs with large state-owned culture is amplified. Consequently, when opening business in different enterprises (SOE). By taking advantage internal friction has hindered many regions of China. If an insurance of their SOE partner's existing network joint ventures from fully achieving their company wishes to establish a and resources, they could quickly goals. The new opening-up measures business in a province, autonomous obtain licenses and build nationwide will give foreign insurers a new region or municipality other than their sales channels through banks and opportunity to rethink their business initial regulatory domicile, they must postal services. models in China. first apply to the CBIRC for a provincial-
8 China market opportunities for foreign insurance companies under the new opening-up policies
4. Possible paths for foreign insurers to enter or re-enter the China market
At the moment, foreign insurance Option 2: Set up Wholly Foreign- Option 3: Acquire existing companies will be considering how to Owned Enterprises (WFOE) insurance companies in China best capitalize on the opportunities the For foreign insurers entering the China Acquiring a company that already has new opening-up policies present. There market for the first time (or planning insurance licenses can be a shortcut are a number of possible options: to develop new businesses in China) for foreign insurers to quickly obtain setting up a WFOE has become an the licenses they need. If the target Option 1: Buying out existing JV alternative pathway under the new already has businesses in multiple partners opening-up measures. To do so, a provinces and cities, the foreign firm Some foreign insurers already have series of regulatory requirements will also benefit from the target's an existing joint venture in China. The need to be met. First, they must obtain established sales channels and scale of new policies will allow these firms to the relevant insurance licenses from business. consider buying out their Chinese CBIRC. Second, they need to obtain partner and become the controlling approval from local authorities to At present, the 12915 Chinese shareholder of the venture. As of set up branches and sales network insurance companies disclosed by 2020, a number of foreign insurance in every province they plan to carry CBIRC can be segmented into three companies are already in negotiations out business. As discussed in Section tiers based on their market share with their Chinese JV partners, aiming 3, it can take several years from first (Table 2). to increase their shareholding from applying to finally obtaining a license. In 50% to full control14. However, there addition, establishing a multi-province are many challenges to the buyout. sales network will require substantial For one thing, the majority of the JV investment, and an even longer and partners are Chinese SOEs; due to complicated ramp-up process. The strategic considerations, they may new opening-up measures will take not be particularly willing to sell their time to roll out, and it has not yet seen shares. Even if they are willing to its impact on expediting this process. sell, they may often demand a high purchase premium.
9 hi r et opportu ities or oreig i sur ce co p ies u er the e ope i g up policies
Table 2: Number of Chinese insurers and representative enterprises in 2018
Life Insurers Non-life Insurers
Number Representative Number Representative
1st Tier 2 China Life, Ping An 1st Tier 2 PICC, Ping An
2nd Tier 14 CPIC, Hua Xia 2nd Tier 9 CPIC, China Life
3rd Tier 47 CCB Life, Ping An Annuity 3rd Tier 55 Zhong An, Zking
Total 63 Total 66
Source: CBIRC
Most tier 1 and tier 2 companies are are SOEs, and others are local private have been able to identify potential large SOEs with low willingness to sell companies. Another example is the customers' insurance needs based their business and any potential sale AXA-Tianping joint venture: even on big data analysis. This big data would trigger very high expectations with a relatively simple shareholding analysis enables InsurTech firms to on their valuation. Tier 3 companies structure, AXA still needed to negotiate develop customized products, improve with business coverage in more than with the five Chinese shareholders customer interaction frequency and 10 provinces would be ideal acquisition to buy out the remaining 50% stake. service quality, and transform the targets. The transaction took almost a year to customer acquisition process from the complete. traditional mass promotion model to Nevertheless, buyers will need to precision marketing. The application be prepared to face the reality of Option 4: Joint venture / of new technologies such as AI, block complex shareholding structures of partnership with InsurTech chain, and cloud computing will enable most domestic insurance companies. companies to acquire customers automation and smarter solutions for Shareholding structures are mostly and channels processes such as underwriting, claims fragmented, and shareholders often In recent years, a large number of and customer support, significantly include financial service institutions, technology companies focusing on improving operational efficiency real estate companies and other the insurance sector have emerged (Figure 4)17. local enterprises. This creates in China. Their business is no longer challenges surrounding acquisitions, limited to selling insurance online. They More and more traditional insurers since it requires early negotiations have reshaped the entire insurance have outsourced, or are outsourcing, and due diligence with a number of value chain with disruptive innovations their non-core operating processes, different shareholders. Take Yong from product development to sales to such as sales, policy administration, An property insurance16 (3rd tier) claims and customer services. claims management and customer for example: the firm has business By building an information platform support, to InsurTech companies, with coverages in 32 provinces as well as and creating "contexts" (e.g. bicycle some even partnering with them for 7 major shareholders including six sharing, food delivery, hotel booking, product development (Figure 5). manufacturing firms and one financial crowd funding, etc.) that attract institution. Some of these shareholders user traffic, InsurTech companies
10 China market opportunities for foreign insurance companies under the new opening-up policies
Figure 4: Technologies enabling China insurance value chain
Product Marketing & Policy Claims Customer Development Sales Administration Management Support
Precise Policy AI Customer Market Research Damage Claim Marketing Administration Reps Online Product Design Sales Channels Underwriting Fraud Detection Insurance Transaction Business Risk Assessment Billing & CRM Payment 24/7 Service & pricing Collection Assist in online Electronic policy Streamline claim e uce costs customer management management process ac uisition AI Frau etection in insurance claims Personali e Customer Efficient Better fraud detection pro ucts segmentation un erwriting through biometrics Accurate risk process Big Data Tailore marketing risk scene assessment an Pre ent customer loss identification pricing ntegrate customer Automated systems and workflow for policy portals a ministration un erwriting an claims Cloud Computing
nno ati e pro ucts mpro e Automate execution Low-cost pro ucts transparency an of claims Block security eliable billing Chain payment process
Automate eman analysis enerate new IoT product offerings
Source: Deloitte Analysis and Research, Insurance Association of China
Figure 5: Business models of InsurTech companies in China
Traditional & Claims 1 Product Marketing Policy Customer Foreign Insurers Development & Sales Administration Management Support
Outsource to InsurTechs Collaborate
Product Marketing Policy Claims Customer 2 InsurTech Development & Sales Administration Management Support
Representative Baoxian.com Insurance House Xinji Family companies involved in a typical part of Huize.com Baoxiandaidai China Insurance the value chain Epoch
Representative companies involved e elop pro ucts in collaboration with Wesure in every part of the Ant Financial 17doubao.com ShuiDiBao tra itional insurers value chain
Source: Deloitte Analysis and Research
11 hi r et opportu ities or oreig i sur ce co p ies u er the e ope i g up policies
Through joint ventures or strategic JD.com and leveraging the platform's product development and operation19. partnerships with leading Chinese digital resources, Allianz P&C insurance The scale of online insurance sales InsurTech companies, foreign insurers rapidly expanded its online business, has grown significantly in particular can quickly have access to multiple with premium income increasing during the COVID-19 crisis. In 2020 Q1, millions of user/customer data by 104% from 2018 to 201918. The the total premium income of online points, better understand customer insurance firm also enjoyed significant insurers Zhongan and Taikang Online needs, develop customized products, growth in other performance increased 82% YoY20. The impact of and conduct precision marketing. indicators, such as profitability and the COVID-19 is proving to be a powerful Outsourcing non-core processes can total number of customers served. In accelerator in the transformation of also help reduce labor cost and enable November 2019, AXA and ShuiDiBao, business models of traditional insurers the foreign insurers to quickly scale up a leading online insurance sales and facilitate more partnerships their business. By selling a 30% stake to platform in China, agreed to an in- between foreign insurers and China's leading e-commerce platform depth collaboration around online sale, technology companies.
12 China market opportunities for foreign insurance companies under the new opening-up policies
5. The next three to five years will be the critical period for foreign insurers to develop their foothold in the China market
The new opening-up policies have five years will provide a solid window impact of COVID-19 and any resultant brought unprecedented opportunities of opportunity for mergers and economic downturn, we expect the for foreign insurers in the China acquisitions (M&A). A number of Tier 3 M&A transaction valuation premium market. Local authorities are expected insurers have been facing operational in the insurance sector to return to a to facilitate the implementation of challenges, with low profitability and more reasonable level, down from a these new measures to enable easier slow business growth. This may lead record high in 2019 (Figure 6). market access for foreign insurers. some existing shareholders to seek At the same time, the next three to potential exit opportunities. Given the
Figure 6: The number of investments and average transaction valuation in the Chinese insurance sector from 2017 to 2019
9
4,445 8 8
2,277 1,318
2017 2018 2019
A erage transaction aluation ( million) umber of in estments
Note: The average transaction valuation has been calculated based on 100% stake; the number of investments only includes the deals that disclose the deal size. Source: Mergermarket, Deloitte Analysis and Research
13 hi r et opportu ities or oreig i sur ce co p ies u er the e ope i g up policies
In addition, regulatory authorities with nearly one third of domestic developments will lead to market have prohibited the asset-driven21 insurers changing management expansion opportunities for foreign liability model, pushing some tier 1 in the past two years. InsurTechs insurers. The impact of the COVID-19 and tier 2 insurers to look for new with an established user base and may make the needs of local insurers business growth opportunities. There online channels are actively seeking more pressing and the opportunities is significant disruption in the market, traditional insurer partners. All these for foreign firms easier to materialize.
"…The next three to five years will be critical for foreign insurers with respect to their China market development, amid new opening-up measures. Additionally, many small- and medium- sized local insurers are facing operational challenges and seeking new investors and business growth, creating more opportunities for foreign insurers…"
—Martin Wong, Deloitte China Financial Services Insurance Leader
14 China market opportunities for foreign insurance companies under the new opening-up policies
Contacts
David Wu Thank you to the following individuals for their Deloitte China Vice Chairman insights and contributions to this report: Financial Services Industry Leader Tel: +86 10 8512 5999 Tim Pagett Email: [email protected] Partner Asia Pacific FSI Leader Jimmy Chan FSI Financial Advisory Leader Francesco Nagari Tel: +86 10 8512 5618 Partner Email: [email protected] Global IFRS Insurance Leader
Martin Wong Duan Lei FSI Insurance Leader Partner Tel: +86 755 3353 8282 FSI Strategic Consulting Insurance Email: [email protected] George Han Partner Elaine Wu FSI Risk Advisory Mergers & Acquisitions Partner Eric Lu Tel: +86 10 8512 4385 Partner Email: [email protected] FSI Actuarial & Insurance Solutions Leader
Zhihua Shang Barry Man Mergers & Acquisitions Director Partner Tel: +86 10 8512 5418 FSI Audit & Assurance Leader Email: [email protected] Alan MacCharles Partner Lily Tian Mergers & Acquisitions Mergers & Acquisitions Director Tel: + 86 10 8520 7755 Tom Wang Email: [email protected] Partner Mergers & Acquisitions Pengli Zhang Mergers & Acquisitions Nicholas David Knox Young Senior Associate Senior Associate Tel: + 86 10 8512 5853 Mergers & Acquisitions Email: [email protected]
15 hi r et opportu ities or oreig i sur ce co p ies u er the e ope i g up policies
Endnotes
1. Administration of Market Access for Insurance Branches, December 2019. 12. China Banking and Insurance Regulatory Commission
2. "Allianz China is coming!," Sohu.com, November, 2019. 13. China Banking and Insurance Regulatory Commission
3. "AXA acquired the remaining 50% stake in AXA Tianping," Sina Finance, 14. ''Prudential Group wants to have 100% stake in their Chinese business,'' December 2019. Reuters, February 2020.
4. "HSBC plans to acquire the remaining 50% stake in HSBC Life,'' Cailian Press, 15. China Banking and Insurance Regulatory Commission May 2020. 16. Company website 5. "Approval of shareholding and capital increase continues to tighten," Sohu 17. Junhao Deng, the time of internet, China insurance market empowered by Finance, December 2019. big data,Insurance Association of China, August 2015. 6. "Exclusive: foreign insurers gear up to tap China's $1.6 trillion pensions 18. "Jingdong-Allianz P&C insurance achieved 104% growth in premiums," Sina business," Reuters, April 2019. Finance, May 2020. 7. "Foreign insurers' premium income in 2019: 30% YoY growth and market 19. "AXA and Shuidi signed strategic alliance agreement," Sohu, November 2019. share increased to 7.17%,'' Sina Finance, February 2020. 20. Zhongan &Taikang Online Websites 8. China Banking and Insurance Regulatory Commission 21. Asset-driven liability model means the insurers sell high yield insurance 9. China Banking and Insurance Regulatory Commission products through the bank-insurance channel to rapidly increase the 10. Jin Dong, Views on Buying American Insurance, Financial View (Wealth), premium scale, as the same time they need to maintain a relatively October 2019. aggressive investment strategy at the investment end, and obtain a higher investment rate of return by taking a higher risk. 11. Personal umbrella insurance: extra liability insurance coverage that goes beyond the limits of the insured's car, home and other standard policies. It provides an additional layer of security to those who are at risk of being sued for damages to other people's property or injuries caused to others in an accident.
16 Office locations
Beijing Hong Kong Tianjin 12/F China Life Financial Center 35/F One Pacific Place 45/F Metropolitan Tower No. 23 Zhenzhi Road 88 Queensway 183 Nanjing Road Chaoyang District Hong Kong Heping District Beijing 100026, PRC Tel: +852 2852 1600 Tianjin 300051, PRC Tel: +86 10 8520 7788 Fax: +852 2541 1911 Tel: +86 22 2320 6688 Fax: +86 10 6508 8781 Fax: +86 22 8312 6099 Jinan Changsha Units 2802-2804, 28/F Wuhan 20/F Tower 3, HC International Plaza China Overseas Plaza Office Unit 1, 49/F No. 109 Furong Road North No. 6636, 2nd Ring South Road New World International Trade Tower Kaifu District Shizhong District 568 Jianshe Avenue Changsha 410008, PRC Jinan 250000, PRC Wuhan 430000, PRC Tel: +86 731 8522 8790 Tel: +86 531 8973 5800 Tel: +86 27 8526 6618 Fax: +86 731 8522 8230 Fax: +86 531 8973 5811 Fax: +86 27 8526 7032
Chengdu Macau Xiamen 17/F China Overseas 19/F The Macau Square Apartment H-N Unit E, 26/F International Plaza International Center Block F 43-53A Av. do Infante D. Henrique 8 Lujiang Road, Siming District No.365 Jiaozi Avenue Macau Xiamen 361001, PRC Chengdu 610041, PRC Tel: +853 2871 2998 Tel: +86 592 2107 298 Tel: +86 28 6789 8188 Fax: +853 2871 3033 Fax: +86 592 2107 259 Fax: +86 28 6317 3500 Mongolia Xi’an Chongqing 15/F, ICC Tower, Jamiyan-Gun Street Room 5104A, 51F Block A 43/F World Financial Center 1st Khoroo, Sukhbaatar District, 14240- Greenland Center 188 Minzu Road 0025 Ulaanbaatar, Mongolia 9 Jinye Road, High-tech Zone Yuzhong District Tel: +976 7010 0450 Xi'an 710065, PRC Chongqing 400010, PRC Fax: +976 7013 0450 Tel: +86 29 8114 0201 Tel: +86 23 8823 1888 Fax: +86 29 8114 0205 Fax: +86 23 8857 0978 Nanjing 6/F Asia Pacific Tower Zhengzhou Dalian 2 Hanzhong Road Unit 5A10, Block 8, Kailin Center 15/F Senmao Building Xinjiekou Square No.51 Jinshui East Road 147 Zhongshan Road Nanjing 210005, PRC Zhengdong New District Dalian 116011, PRC Tel: +86 25 5790 8880 Zhengzhou 450018, PRC Tel: +86 411 8371 2888 Fax: +86 25 8691 8776 Tel: +86 371 8897 3700 Fax: +86 411 8360 3297 Fax: +86 371 8897 3710 Shanghai Guangzhou 30/F Bund Center Sanya 26/F Yuexiu Financial Tower 222 Yan An Road East Floor 16, Lanhaihuating Plaza 28 Pearl River East Road Shanghai 200002, PRC (Sanya Huaxia Insurance Center) Guangzhou 510623, PRC Tel: +86 21 6141 8888 No. 279, Xinfeng street Tel: +86 20 8396 9228 Fax: +86 21 6335 0003 Jiyang District Fax: +86 20 3888 0121 Sanya 572099, PRC Shenyang Tel: +86 0898 8861 5558 Hangzhou Unit 3605-3606, Forum 66 Office Tower 1 Fax: +86 0898 8861 0723 Room 1206-1210 No. 1-1 Qingnian Avenue East Building, Central Plaza Shenhe District Ningbo No.9 Feiyunjiang Road Shenyang 110063, PRC Room 1702 Marriott Center Shangcheng District Tel: +86 24 6785 4068 No.168 Heyi Road Hangzhou 310008, PRC Fax: +86 24 6785 4067 Haishu District Tel: +86 571 8972 7688 Ningbo 315000, PRC Fax: +86 571 8779 7915 / 8779 7916 Shenzhen Tel: + 86 574 8768 3928 9/F China Resources Building Fax: + 86 574 8707 4131 Harbin 5001 Shennan Road East Room 1618, Development Zone Mansion Shenzhen 518010, PRC 368 Changjiang Road Tel: +86 755 8246 3255 Nangang District Fax: +86 755 8246 3186 Harbin 150090, PRC Tel: +86 451 8586 0060 Suzhou Fax: +86 451 8586 0056 24/F Office Tower A, Building 58 Suzhou Center Hefei 58 Su Xiu Road, Industrial Park Room 1201 Tower A Suzhou 215021, PRC Hua Bang ICC Building Tel: +86 512 6289 1238 No.190 Qian Shan Road Fax: +86 512 6762 3338 / 3318 Government and Cultural New Development District Hefei 230601, PRC Tel: +86 551 6585 5927 Fax: +86 551 6585 5687
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