China

...why has the sailing been smooth for mature products similar to universal life insurance abroad, while in China things have been so turbulent? (p57)

2017 0623 - IMF - Strengthening Financial and Exchange Rate Frameworks - 230p - [Link to Download page -> Conference ebook] 
  • China Insurance Regulatory Commission (CIRC)
    • The insurance regulator was the People’s Bank of China until November 1998, when the CIRC (China Insurance Regulatory Commission) was established.
    • Xiang Junbo
  • China Risk Oriented Solvency System ("C-ROSS")
  • Greater China Region Committee of the Society of Actuaries
  • China Association of Actuaries (CAA)
  • Baoneng Group Foresea Life
  • Anbang Life, part of the Anbang Insurance Group
  • Evergrande Life , China Evergrande Group
  • Prudential Life / Fosun International Ltd
    • Pramerica Fosun life Insurance Co (started in September 2012)
  • MetLife Hong Kong, a wholly-owned subsidiary of MetLife, Inc.
  • MassMutual
  • China Risk Oriented Solvency System
  • The world has been amazed by the rapid growth of the Chinese economy and its life insurance market during the last couple of decades.

2014 - SOA - Behind the Growth of the Chinese Life Insurance Industry, By Feng Sun, Society of Actuaries - 5p

  • 2002 - SOA - Dropping Like a Rock: Dealing with Falling Interest Rates and Equity Markets Outside the United States and Canada, Society of Actuaries - 27p
  • 2004 - SOA - New Chinese Actuarial Regulation of Non-guaranteed Life Products, by Samuel Zhou, Society of Actuaries - 2p
  • 2014 - SOA - Behind the Growth of the Chinese Life Insurance Industry, By Feng Sun, Society of Actuaries - 5p
  • 2020 02 -  SOA - Systemic Risk in China’s Insurance Industry, Society of Actuaries - 55p
  • In China, the first unit-linked product was launched by Ping An Insurance Company in October 1999.
    • The product attracted many investors by its transparency, flexibility and most importantly the potential to earn market upside and the sales volume picked up rapidly from 1999 to 2000.
    • However, the equity market headwind quickly suppressed the momentum.
    • As figure 4 (page 22) shows, China’s stock market went through a prolonged bear market phase from 2001 to 2004.
    • Investors lost money, surrenders soared and regulators were overwhelmed by complaints of policyholders about the mis-selling. (p21-22)
    • In order to promote the healthy development of unit-linked business, CIRC released several rules on it to regulate the product charges, reserves and sales behavior.

2012 06 - SOA - Chinese Dragon vs. Indian Tiger: Developments in variable annuities, Sharon Huang, Society of Actuaries, International News (Issue No.56 ) - 9p

  • 2017 - SOA / LIMRA - The Future of Retirement in China: History, Systems, and Review, Edition Six, by Lauren Finnie - 87p
    • In September 2016, CIRC implemented new rules restricting short-term investment-like universal insurance products to minimize high-risk investments. Shares in China Life, the biggest victim of the rise of companies like Anbang and Huaxia Life, gained more than 4 percent as a result of this change.

 

  • 2017 - SOA / LIMRA - The Future of Retirement in China: History, Systems, and Review, Edition Six, by Lauren Finnie - Full Report - 140p
  • 2017 - SOA / LIMRA - Fast Facts: The Future of Retirement in China - 2p
    • SUMMARY: This six-part study details views on retirement trends in China expressed by more than 2,000 workers and retirees in 2015.
      • A joint project of the Society of Actuaries and LIMRA, it includes not only extensive findings based on interviews but also retirement trends analysis, forecasts, and data from other researchers.
    • METHODOLOGY REPORT SPECS
      • Published: 2017
      • Pages: 140
      • Access: Downloadable pdf
      • Research Sponsors: The Society of Actuaries (SOA) and the LIMRA Secure Retirement Institute
      • Author: Lauren Finnie, LIMRA International Research
      • Structure: The study’s six editions include:
        • I. Key findings
        • II. Retirement definitions and demographics
        • III. Planning and information
        • IV. Funding retirement
        • V. Perceptions and concerns
        • VI. History, systems, and review. (This section includes numerous findings plus recommendations, insurance market analysis, and the full questionnaire.)
        •  Illustrations: The six editions, taken together, offer over 100 footnotes plus roughly 80 figures, 22 tables, 20 photographs, 20 graphics, 20 lists, and 11 appendices, including a two-page list of resources.
  • (p27) - Later, insurers would jump in as well, offering “unit-linked” and “universal life” insurance products that appeared to be little more than WMPs by other names.  (p27)

2018 - CSIS - Credit and Credibility: Risks to China’s Economic Resilience, Center for Strategic and International Studies - 147p

  • In the run-up to 2007, when the country's financial services must be opened up to full international competition as a condition of China's membership of the World Trade Organisation (WTO), Western financial services companies are fighting to get an early foothold in the seemingly highly lucrative Chinese financial services industry.

2005 0517 - Institute for Agriculture and Trade Policy - Country Survey - China: Banks going for gold in China -  [link]

  • 2017 - IMF - Modernizing China Investing in Soft Infrastructure - Chapter 10 - [link]
    • This rising riskiness in asset portfolios is matched by shifts in liabilities.
    • A rising share of products have promised high guaranteed returns.
    • Much of the rapid rise in premium income seen in 2015 came from universal life insurance products. Until February 2015 the return on such products was guaranteed at 2.5 percent.
    • After this ceiling was lifted, average premiums rose to about 5 percent, with smaller companies selling products at even higher returns.10
    • Many of these products were also of very short duration, raising concerns about asset-liability mismatches and rollover risks.
  • MetLife Hong Kong is growing its high-net-worth customer base through the award-winning USD universal life insurance products....
    • HNW individuals to enjoy jumbo life insurance protection and a guaranteed interest rate.
    • The products come with a dual guarantee that stands out from the market – a point-to-point 15-year interest guarantee, as well as the conventional minimum crediting interest rate. In particular, MetLife Legacy Universal Life garnered Best-in-Class in the “Whole Life Protection Product” category at the BENCHMARK Wealth Management Awards 2014.

 2015 - businesswire - MetLife Hong Kong’s Brokerage Business Records over 500% YoY Growth Provides exceptional investment strength and award-winning USD denominated products amid global market instability and RMB volatilit - [link]

  • CCW Global - Universal Life Insurance in Hong Kong - [link]
    • hk.ccw-global.com/life-insurance/plans/non-traditional/universal-life/
  • 2015 1008 - Reuters - UPDATE 1-China insurers' 2017 universal life insurance funds halve amid crackdown - [link]
  • 2016 0907 - Insurance Business Mag - China’s crackdown on universal life products to impact unlisted insurers - [link]

  • Life and health premiums grew by 34.1% in real terms in 2016 after a 23.2% gain in the preceding year.
    • Traditional and universal policies were the key drivers behind business growth in 2016 (+55.3% and +443.7% respectively).
    • The participating life products (+7.3%) and unit-linked (+7.2%) segments also contributed.
    • The huge growth in the universal life segment was in part due to liberalisation of investment regulations and interest rate caps by the CIRC, which allowed some life insurers to repackage universal life insurance from long-term flexible savings products into a kind of short term, high-yielding wealth management product.

2018 02 - SwissRe - The Chinese Insurance Market - 39p