Organizational Architecture Array
Earlier this year, at the 2019 working meeting of China Life, Wang Bin, chairman of China Life, expounded for the first time his "program of managing enterprises" with a speech entitled "Uniting to reinvigorate China Life and start again", demanding that "it will take three to five years to achieve the strategic goal of 'revitalizing China Life'."
In this context, China Life has been moving frequently this year.
For the second half of the year, Su Hengxuan, president of Guoshou, revealed at the performance conference of China Daily that he should focus on value and speed up business development (focusing on long-term guarantee business); deepen reform and promote the landing of "new projects"; transform and upgrade sales team; promote the revitalization of key cities, while constantly consolidating and strengthening counties. Regional market advantages; comprehensive strengthening of scientific and technological capabilities and innovation leadership; do a solid job in risk prevention and control.
Su Hengxuan also said that he plans to carry out the "Dingxin Project" in 2-3 years. The "Dingxin Project" aims at constructing the operational combat organization system. At present, it focuses on the adjustment and optimization of the headquarters and branches, and achieves the goal of "revitalizing Guoshou". "strengthen the headquarters, fine province, Youdi city, live grass-roots level; strengthen the front desk, optimize China Taiwan, and simplify the background."
It is understood that Guoshou shares in the optimized organizational structure, the front desk is composed of three major centers: large insurance development center expanded to six departments, multi-development center (play the role of multi-plate coordination), investment management center (set up six teams, market-oriented configuration); and technology (set up R&D sub-centers, strengthen incubation) for Zhongtai (set up R&D sub-centers, strengthen incubation). Capacity-building, operation (building customer-centric service system), products (optimizing the functions of existing departments, improving product development agility); structural adjustment under provincial level is under approval.
From January to August this year, the original insurance premium income of Guoshou shares was 443.2 billion yuan, an increase of 5.78 percent over the same period last year.
In the first half of this year, Guoshou's new business value was 34.569 billion yuan, an increase of 22.7% over the previous year, which was higher than other listed companies; the net profit attributable to the shareholders of the parent company was 37.599 billion yuan, an increase of 128.9% over the previous year, leading the listed insurance companies; and the premium income was 377.976 billion yuan, an increase of 49% over the previous year.
Four Internet property insurance
At present, there are four licensed Internet property insurance companies: Zhongan Online, Taikang Online, Anxin Property Insurance and Yian Property Insurance.
Among them, Zhongan online is the only listed company. In 2013, Zhongan was co-sponsored by Ant Financial Services Group, Tencent and Ping an of China, including Ant Financial Services Group holding 13.53%, Tencent 10.20%, China Ping an 10.20%. In September 2017, it landed on the Hong Kong Stock Exchange and became the first Internet insurance company to list Hong Kong shares in China.
In 2018, the premiums of four Internet insurance companies increased, but the total revenue was lost. Yian Property Insurance, Zhongan Online, Anxin Financial Insurance and Taikang Online lost 199 million yuan, 1.797 billion yuan, 495 million yuan and 360 million yuan respectively. The reasons for the loss are the high increase of insurance compensation expenditure and the high channel cost. The compensation expenditures of the four companies are 800 million yuan, 4.65 billion yuan, 340 million yuan and 880 million yuan respectively.
As of June 30, Zhongan online recorded premium income of 5.9 billion yuan in the first half of the year, with a net profit of 90 million yuan attributable to the parent company shareholders.
In the first half of this year, the overall cost rate of Zhongan Online improved by 15.7 percentage points, reaching 108.3%, the underwriting loss decreased by 43.3% compared with the same period last year, narrowing to 490 million yuan, and the A-share market profit increased investment income to 76 million yuan, up 118.3% compared with the same period last year.
Jiang Xing, the new CEO of Zongan online, said: "in the first half of this year, Zongan, driven by the ecology of daily consumption, cars and consumer finance, saw steady growth in premium income, while we constantly optimized the business structure and insisted on technology-driven internal cost reduction and efficiency gains, making key financial indicators significantly improved."
According to the data of China Insurance Industry Association, in the first half of 2019, the total premium income of four professional Internet insurance companies, Zhongan Online, Taikang Online, Anxin Property Insurance and Yi'an Property Insurance, amounted to 9.208 billion yuan, a year-on-year growth rate of 17.85%, a decrease of 63.60 percentage points over 2018, accounting for 24.13% of the total Internet property insurance business, compared with 2%. In 2018, it decreased by 0.03 percentage points, and its market share remained basically unchanged.
In the first half of 2019, the premium income of Internet property insurance accounted for 5.69% of the original premium income of the whole channel of property insurance companies, up 0.27 percentage points from the same period last year, and maintained a steady upward trend.
Previously, the relevant person in charge of the Banking Insurance Regulatory Commission said that in the future, the regulatory authorities will conduct a key research on the development of Internet insurance, including the regulation of Internet insurance will also be updated in time, and will seek advice from the community.