Looking forward to the future, the individual insurance channel is expected to achieve continuous improvement in per capita production capacity under the continuous promotion of the upgrading of the first-class team by insurance companies, and the bancassurance channel will have a great future under the trend of strengthening in-depth cooperation between the bancassurance and superimposing large wealth, and the premium and value growth space of the individual insurance channel and the bancassurance channel are worth looking forward to.
Contributing author Yang Qianwen.
Since 1992, AIA introduced the mature individual ** person system into Chinese mainland, and in 1996, Ping An Life took the lead in introducing the advanced concept of foreign bancassurance and the establishment of bancassurance cooperation with Industrial and Commercial Bank of China, and the ** person channel and bancassurance channel gradually replaced the absolute position of the original group insurance direct sales channel, becoming the core sales channel of Chinese life insurance companies, accounting for 95% of the total premium income in 2022.
Throughout the history of Chinese's life insurance channel development, regulatory policies and insurance companies' business strategies are the key factors driving the development of the channel. For the individual insurance channel, in 1992, in the context of the selection of Shanghai as a pilot for the development of the insurance industry, the introduction of the AIA individual system ushered in rapid growth, and in 2015, after the cancellation of the qualification examination, the blowout growth of the number of people drove the channel to re-establish its leading position.
From 2010 to 2018, a series of policies such as "Circular No. 90", "Bancassurance Business Regulatory Guidelines", "No. 134 Document" and "No. 19 Document" were promulgated.
After 30 years of development, the two core channels are now restarting under the adjustment of external policies and internal strategies. In terms of individual insurance channels, the shortcomings of the extensive crowd tactics in the past have been prominent and unsustainable, and various insurance companies have firmly promoted high-quality transformationIn terms of bancassurance channels, in the context of the external regulatory tone of "insurance surname insurance" and the sluggish growth of the in-depth transformation of internal channels, insurance companies are competing to strengthen the importance of bancassurance business and guide the value-based transformation of channels.
"Newspaper and bank integration" and industry self-discipline go hand in hand
Looking back at the development of bancassurance business, regulatory policies are one of the most important factors affecting the premium growth of bancassurance channels, and expense ratio and product types sold are the focus of regulatory attention. In general, the top listed insurers have diversified channels, clear bancassurance strategies, and high requirements for cost control and compliance risk control, and are relatively less affected by policy adjustments. At present, the regulatory control measures for the life insurance channel are mainly reflected in the two-pronged approach of "integration of newspaper and banking" and the "Self-Discipline Convention" of the industry.
On August 22, the Life Insurance Department of the State Administration of Financial Supervision issued the Notice on Regulating Insurance Products of Bank Channels (hereinafter referred to as the "Notice") to all life insurance companies, requiring insurance companies to prudently and reasonably determine the cost assumptions, clearly explain the cost assumptions and fee structure when filing the products, and list the upper limit of commissionsAt the same time, it is required to list commissions according to the facts, and the actual expenses such as commissions should be consistent with the filing materials. "The integration of newspapers and banks" is not only a concrete embodiment of strict supervision, but also an inevitable demand to promote the industry's accounting operation and strengthen management.
On July 31, the Shanghai Insurance Association issued the "Shanghai Self-Discipline Convention on Life Insurance Bancassurance Business (2023 Edition)" (hereinafter referred to as the "Self-Discipline Convention"), and 59 member institutions reached a consensusThe Guangdong Insurance Industry Association also issued the "Guangdong Provincial Convention on Self-Discipline of Life Insurance Bancassurance Business". According to the Bancassurance Self-Discipline Convention in some regions, the upper limit of the bancassurance handling fee rate (FYC FYP) corresponds to 1 year, 3 years, 5 years and 10 years respectivelyAmong them, the Shanghai "Self-Discipline Convention" makes clear provisions on personnel management, business norms, expense management and self-discipline management, requiring insurance institutions to promise not to increase the handling fee of bancassurance business in disguised form through other channels and methods, and resolutely put an end to bancassurance small accountsInsurance institutions shall not sign supplementary agreements involving handling fees or disguised increases in handling fees;Insurance institutions and insurance practitioners shall not, in any name or in any form, directly or indirectly give benefits other than those stipulated in the cooperation agreement between the bank** institution and its employees, including but not limited to the payment of cash, all kinds of valuable, or reimbursement of expenses, provision of travel, etc.
In fact, the "Notice" requires the "integration of newspapers and banks" for fees and commissions, strictly restricts the overall fees and commissions of bancassurance channels, regulates the business of bancassurance channels, and forces the industry to eliminate the problem of high actual handling fee rates caused by "small accounts" and "dark accounts". After the implementation of the "integration of newspapers and banks" and the "Self-Discipline Convention", the expense ratio level of life insurance companies in the bancassurance business will be strictly implemented in accordance with the prescribed upper limit, and the industry expense rate level will remain consistent, which can reduce the vicious competition in the industry, resolve the potential risks of the bancassurance business, and promote the stable, orderly and healthy development of the bancassurance business.
According to the information disclosed by the State Administration of Financial Regulation, up to now, the vast majority of banks engaged in bancassurance business have re-signed contracts with insurance companies in accordance with the requirements of "integration of newspapers and banks".On the whole, the bancassurance business is running smoothly and making good progress. According to preliminary estimates, the commission rate of the bancassurance channel has decreased by about 30% compared with the previous average.
Bank customers naturally have the willingness to save and other prudent financial management, and bank branches also naturally have savings product sales scenarios, which are easy to reach and convert potential insurance customers. On the one hand, commercial banks have business outlets at all levels in cities and counties, covering a wide range of customers and a large number of customersAt the same time, the private banking business has been developed for a long time, and the resources of high-quality customers such as middle and high-net-worth individuals are abundant, and the customers have a high degree of trust and stickiness in the bank. On the other hand, the product homogeneity of insurance companies is obvious, and the degree of similarity of additional services such as pension and health management is high.
It can be seen that the competition between the bancassurance channel and the auto insurance 4S store channel is relatively similar, and in the context of obvious homogeneity of products and services, the channel has a rich customer source and direct sales scenarios, and has a strong voice in the sales of insurance products, and the performance of new orders mainly depends on channel sales. The Measures for the Administration of Insurance Business of Commercial Banks stipulate that, in addition to the Internet insurance business and the insurance sales business, each branch of a commercial bank can only cooperate with no more than 3 insurance companies in the same fiscal year. Therefore, handling fees have become the core of competition in bancassurance channels.
Due to the strong voice and fierce competition in the bancassurance channel, insurance companies usually determine the handling fee rate with the bank on a "total to total" basis, but in actual business, it is common for the "split-to-total" handling fee rate to rise by 5-10 percentage points compared with the "total to total". In addition to the "big account" and "open account" of handling fees, there are also "small accounts" and "dark accounts" in which insurance companies give banks additional benefits by paying cash, arbitraging fees, providing travel and other ways other than agreed in the contract, and the actual handling fee rate is high. The high cost not only disrupts the market order, but also is the root cause of problems such as false fees, false insurance, and false surrender, and it is also the soil that breeds the "best black industry", which is not conducive to the high-quality development of the industry.
Generally speaking, the pricing of life insurance products includes three basic elements: pricing interest rate, pricing incidence rate and pricing expense ratio.
Specifically, the pricing interest rate is uniformly stipulated by the regulator, the product incidence rate is basically the same, and the pricing expense rate is a relatively flexible part of the product pricing. Under the background of the pressure on the development of individual insurance and the strong demand for residents' wealth management, leading insurance companies have moderately increased resource investment in the bancassurance channelSmall and medium-sized insurance companies have limited development time, high cost of building individual insurance teams, weak overall channel capabilities, and higher dependence on market-oriented and open bancassurance channels.
However, small and medium-sized insurance companies have limited business scale, and the way of cooperation with banks is relatively simple.
First, the depth of cooperation is relatively limited, mainly by increasing the actual handling fee rate to enhance the bank's willingness to cooperate, increase product sales, and improve the cost performance of products and attract customers by reducing the pricing expense rate. As a result, the bancassurance business of small and medium-sized insurers is faced with high actual product costs and long-term low or even negative business value rates of bancassurance channels.
From the perspective of different types of companies, for small and medium-sized insurers, although channels are very important for business expansion, under regulatory requirements, they may be able to use part of the previous off-the-books expenses to optimize product pricing, enhance product competitiveness, expand business scale, and moderately reduce dependence on channel resources.
On the other hand, the leading listed insurance companies have comprehensive advantages in terms of capital and resources, and have various ways of cooperation with banks, and have strict requirements for cost control and compliance risk controlBank-based insurance companies have the advantage of shareholder resource endowment, and it is expected that the expense ratio will remain reasonable and controllable before the regulatory "integration of newspapers and banks" requirements and the issuance of the Self-Discipline Convention. Therefore, after the implementation of the "integration of newspapers and banks" and the "Self-Discipline Convention", the expense ratio and commission ceiling tend to be unified, and the existing advantages of the top listed insurance companies and bank-based insurance companies will be further amplified, and it is expected that their bancassurance business is expected to maintain a trend of volume increase and price increase.
The bancassurance channel is significantly affected by regulatory policies
From the perspective of the premium growth of the bancassurance channel and its proportion in life insurance premiums, the first half of the development of the channel can be roughly divided into two stages, and the impact of regulatory policies is obvious: the first stage: 1995-2010 is a period of rapid development, and the bancassurance channel has emerged and flourished in the context of life insurance product innovation and insurance companies' interest margin self-help. The second stage: 2010-2019 is a period of development and transformation, with early rapid development accompanied by problems such as "off-the-books incentives", misleading sales and low-quality business.
First of all, from 1995 to 2010, driven by product innovation and self-help of interest rate spreads, bancassurance rose and developed rapidly. In order to rapidly expand the scale of business, the early cooperation between banks and insurance companies was mainly to sell insurance through banking channels**. Before the early 90s of the 20th century, China's insurance industry was dominated by property insurance business, and wholly state-owned insurance companies cooperated with state-owned commercial banks to obtain a large number of enterprise property insurance and construction project insurance when banks provided loans to enterprises. Since 1993, the Bank of China and the first insurance industry have carried out separate management, and in order to rapidly increase their market share, since 1995, new insurance companies such as Xinhua, Taikang and Huaan have signed agreements with banks and began to try to sell insurance products in bank counter channels.
Under the pressure of interest rate losses in the life insurance industry, innovative life insurance products have emerged, and the cooperation model between insurance companies and banks has changed from "1-to-1" to "1-to-many", and bancassurance consultants have been introduced. Before November 1997, there was no regulatory restriction on the predetermined interest rate of life insurance, and the pricing interest rate of insurance products was determined by the insurance company, and the predetermined interest rate was as high as 8%-10% during this period.
In November 1997, the central bank, the former regulator of the insurance industry, adjusted the predetermined interest rate of life insurance to the lower limit of 4% and the upper limit of 65%。However, the central bank then cut interest rates seven times in a row, with a predetermined upper limit of 65% remain at risk of spread loss. The life insurance products sold during this period have high predetermined interest rates and long insurance periods, but the early insurance funds can be invested in a limited scope and the asset allocation style is stable, and life insurance companies are facing the problem of high "interest rate spread loss".
In June 1999, the former China Insurance Regulatory Commission lowered the predetermined interest rate of life insurance to no more than 2 per annum5% with no spread return clause attached;At the same time, the scheduled interest rate for the suspension of sales exceeds 25% of life insurance products. In the early stage of development, the "savings-like" nature of life insurance products was stronger, and the continuous decline in predetermined interest rates led to the decline in the attractiveness of traditional life insurance products compared with bank deposits, and the growth rate of life insurance premiums increased from 84 in 19979% continued to decline to 14 in 20004%。Based on this, since 1999, major commercial banks and insurance companies have strengthened cooperation, and banks and insurance companies have signed comprehensive cooperation agreements based on customer service and business development at the level of "total to total" and "branch to point", including many-to-many cross-cooperation such as insurance, capital settlement and e-commerce.
In 2000, under the background of the risk of "spread loss" and the decline in the growth rate of premiums of traditional life insurance products, leading life insurance companies followed the example of overseas to launch three innovative products: investment-linked insurance, participating insurance and universal insurance, which have strong investment attributes and are suitable for sales through bank channels. Before 2003, a commercial bank could only sign a ** agreement with a life insurance company (that is, the "1-to-1" model), in 2003, the new "Insurance Law" allowed a bank to cooperate with multiple insurance companies (that is, the "1-to-many" model), and in 2004, insurance companies began to send sales consultants to enter the counter of bank outlets. Since then, the premium income of the bancassurance channel has grown rapidly, and the proportion of premiums has increased rapidly, and in 2008, it surpassed the individual insurance channel to become the largest life insurance sales channel. As of the end of 2010, the premium income of the bancassurance channel was 524.5 billion yuan, accounting for 50% of the life insurance premium, compared with 2004, the premium scale increased by nearly 7 times, and the proportion also doubled.
Secondly, from 2010 to 2019, the rapid development was accompanied by problems such as "off-the-books incentives", misleading sales and low-quality business.
The supervision regulates the bancassurance business in terms of sales personnel, scope of cooperation, sales behavior, etc., and the cooperation between insurance companies and banks has entered the "one-to-three" stage, forming a crowding out effect on market competitors, and the bancassurance business has shrunk significantly. Commercial banks and insurance companies have cooperated smoothly in customer service and business development, and the premium income of the bancassurance channel has grown rapidly, which is also of great significance for the banking industry to increase intermediate business income, enrich the product system and meet the needs of customers for comprehensive financial protection.
Under the continuous guidance and regulation of supervision, the order of the bancassurance market has improved, but some commercial banks and insurance companies have excessively pursued business scale indicators and short-term benefits, and there are still problems in the sales process, such as exaggerating the benefits of insurance products, confusing insurance products with savings products, and concealing risks and expenses, misleading customers and harming their legitimate rights and interests.
On the other hand, the bancassurance business was mainly sold at the savings counters of bank outlets, with a large number of people waiting and limited time for sales instructions, and the bancassurance business was mainly based on single payment and short-term payment products. For customers, bancassurance products are simple, limited protection, and insufficient demand is metFor insurers, the term structure and insurance structure of bancassurance business are poor, the product value ratio is low, and the contribution of embedded value is limited.
Based on this, the regulators have issued continuous documents aimed at further standardizing the order of the bancassurance market, adjusting and optimizing the bancassurance business structure, and accelerating the transformation of the bancassurance business development mode. As of 2019, the premium income of bancassurance** channels was 897.6 billion yuan, accounting for 30% of life insurance premiums3%, accounting for nearly 20 percentage points lower than the 2010 high.
Specifically, during this period, the documents issued by the regulator to regulate the bancassurance channel are as follows:
First, in November 2010, the former China Banking Regulatory Commission (CBRC) issued the Notice on Further Strengthening Compliant Sales and Risk Management of Commercial Banks, abolishing the banking and insurance offices and changing the cooperation between banks and insurance from "1-to-many" to "1-to-3". It is clearly required that commercial banks shall not mislead sales, emphasizing that they should clearly indicate to customers that they are selling insurance products;Insurance company personnel are not allowed to be stationed in commercial bank outlets, and personnel who are required to sell insurance products directly to customers through commercial bank outlets should be bank sales personnel who hold the qualification certificate of insurance practitionersBancassurance supervisors are allowed to provide commercial banks with training, assistance in policy maturity payment and renewal charges, complaint handling and other related services. In addition, in principle, commercial banks can only cooperate with no more than three insurance companies per branch.
Second, in March 2011, the former China Insurance Regulatory Commission issued the Guidelines for the Supervision of Commercial Banks' Insurance Business, standardizing bank-insurance cooperation, strengthening the management of first-class expenses and the control of sales behavior, preventing and cracking down on misleading sales, and encouraging the development of long-term savings and protection products. The bancassurance business was previously dominated by savings counter sales in bank outlets, and the stipulation that "commercial banks shall not allow insurance company personnel to be stationed in bank outlets" had a huge impact on the bancassurance sales model, and the bancassurance business quickly entered a period of transition under strong supervision, and the growth rate and proportion of premiums fell sharply.
Third, the former China Insurance Regulatory Commission (CIRC) issued a series of documents in 2016 to regulate the sales of short- and medium-duration life insurance products. In March, the Notice on Matters Concerning the Regulation of Short- and Medium-Term Life Insurance Products was issued, which put forward different requirements for the sales scale of short- and medium-duration products with different durations and restricted the sales of short- and medium-duration productsIn September, the "Notice on Further Improving the Actuarial System of Life Insurance" was issued, which put forward the proportion requirement for the proportion of short- and medium-duration business - the proportion of the annual premium income of the insurance company's short- and medium-duration products in the total premium income of the current year shall not exceed % of the annual scale from 2019 to 2021;In December, the Notice on Further Strengthening the Supervision of Life Insurance was issued, requiring that the proportion of quarterly premium income of short- and medium-duration products in the total scale of premium income in the current quarter shall not be higher than 50%.
**Both human and bancassurance channels have reached the deep water area of transformation
*The Renhe bancassurance channel is the two core sales channels of Chinese life insurance companies, and both of them have entered the deep water area of transformation.
For a long time, thanks to the tactics of crowd control, the industry's leading channels have achieved rapid growth. However, behind the low threshold of the channel is the extensive management characteristics of low professionalism, low production capacity and low retention, as well as the increasingly prominent practical dilemmas: mainly including: 1The demographic dividend is decreasing, and the model of growth driven by human scale cannot be sustained2.**The income level of the population is at a disadvantage compared with other new economy industries, and it is difficult for the industry to increase and retain employees;3.Insurers with low professional quality are unable to meet the escalating needs of customers4.Supervision continues to increase the supervision of people's behavior.
It is precisely because of the prominent shortcomings of crowd tactics and the loss of kinetic energy that it has become an industry consensus to shift from quantity-driven to production capacity improvement. After 2019, insurance companies have vigorously carried out high-quality transformation of first-class human channels, mainly from two aspects: "clearing the void" of personnel and "improving the quality of human resources".
In terms of personnel "clearance", according to the data provided by the former China Banking and Insurance Regulatory Commission, from the end of 2019 to the end of the first half of 2022, the number of sales personnel under the ** system of insurance companies nationwide dropped from 9.12 million to 5.22 million, nearly halved. In terms of "quality improvement" of human resources, it is mainly carried out from two levels: first, the team is upgraded, and various insurance companies have successively launched elite training programs to develop and seize the mid-to-high-end market by improving the professional quality of people;The second is the optimization of the Basic Law, in which leading insurers actively promote the iteration of the Basic Law version to match their own strategic transformation and help the team achieve its transformation goals from the institutional perspective.
The bancassurance channel is characterized by "high scale and low value", which is mainly due to the pain points of the bancassurance cooperation model. In recent years, the bancassurance business has ushered in rapid development, contributing considerable to the scale of insurance companies, but making a limited contribution to value. In 2022, except for Ping An, a bank-based insurance company, the proportion of new policy premiums in the bancassurance channels of China Pacific Insurance and Xinhua Insurance will be .9%, and the corresponding NBV proportion of bancassurance channels is .3%；Ping An of China and CPIC Bancassurance channel NBVM are7%, much lower than the 36 of the ** people channel3%/32.5%。It is mainly due to the pain points of the two sides in terms of channel positioning and cooperation mode, which are mainly manifested in the following three aspects:
1.The bank's marketing team is faced with the requirements of the agency sales assessment of a variety of wealth management products, unable to focus on insurance sales, and lacks systematic training and professional management, making it difficult to sell complex insurance products2.The "many-to-many" cooperation model is generally adopted by the domestic banking and insurance companies, and it is difficult to establish a long-term and stable cooperative relationship3.It is difficult for the bank and insurance companies to effectively coordinate the operation of customers.
However, the bancassurance channel has a promising future due to the emphasis on enhancing the trend of superimposing large wealth, and the efforts of customers, banks and insurance companies to drive the new development of bancassurance.
On the client side, residents' awareness of wealth management has been continuously strengthened, and the advantages of savings and protection insurance provided by insurance companies in personal pension and wealth inheritance have gradually been recognizedOn the banking side, the transformation of retail business has become the main direction of the future development of the banking industry, and the importance of insurance products in the banking retail system will continue to increase due to the unique attributes that can meet the needs of bank customers' pension security and stable asset allocation at the same time, as well as the advantages of bringing long-term stable intermediate income to banksOn the insurance company side, under the influence of internal reform and external epidemic restrictions, the bancassurance channel has returned to the strategic vision of insurance companies, and has become a new force for insurance companies to maintain scale and value growth.
Looking forward to the future, the individual insurance channel is expected to achieve continuous improvement in per capita production capacity under the continuous promotion of the upgrading of the first-class team by insurance companies, and the bancassurance channel will have a great future under the trend of strengthening in-depth cooperation between the bancassurance and insurance parties and superimposing the trend of great wealth, and the premium and value growth space of the individual insurance channel and the bancassurance channel are worth looking forward to.
In the context of the deepening transformation of individual insurance channels and the accelerated release of residents' demand for capital preservation savings, the transformation of individual insurance resonates with customer demand, the bancassurance market is heating up again, and the bancassurance business is back on the fast track of development. Since 2020, individual insurance has ushered in a period of in-depth transformation, and new orders and NBVs have come under significant pressure. Banks with a wide range of outlets and a large number of customers are the most important channels for the distribution of financial productsIn the context of the pressure on individual insurance, the trend of bancassurance filling is clear. As of the end of 2021, the premium income of bancassurance** channel was 1,038.9 billion yuan, accounting for about 33.3% of life insurance premiums3%, accounting for a percentage point recovery from the low point in 2019.
Specifically, in terms of products, the main critical illness products of the individual insurance channels of listed insurance companies have a high degree of homogeneity and high quality, but the protection leverage is lower than that of "Internet celebrity critical illness".After the value transformation from 2017 to 2019, the coverage rate of customers with certain spending power has been relatively high. At the same time, the pace of promotion of "Huimin Insurance" has accelerated, and the product has a low threshold (no age and health requirements), low premiums (mostly less than 100 yuan), high insurance amount (mostly 1 million to 2 million yuan), and some areas can be purchased with medical insurance accounts, and there is ** or endorsement from relevant departments, which has a certain impact on the sales of critical illness insurance.
In terms of channels, in the face of the new situation of younger customer groups and the transformation of customer needs, major listed insurance companies have taken the initiative to promote the transformation of the first-class team to a high-quality, high-quality and high-capacity team according to the characteristics of market development. In addition, during this period, the former China Banking and Insurance Regulatory Commission continued to further promote the work of controlling chaos and preventing risks in the life insurance market, and organized life insurance companies to carry out special work on chaos control. The decline in the scale and manpower of life insurance companies is accelerating, but it takes time and energy to improve the quality of the team, so new individual insurance policies and NBV are obviously under pressure.
In terms of customer demand, although residents' risk appetite is low, the willingness to save capital is high, and the demand is strong, the yield of partial savings products such as bank deposits and Yu'e Bao has continued to decline in recent years.
In terms of supervision, in April 2022, the former China Banking and Insurance Regulatory Commission (CBIRC) issued a new version of the Administrative Measures for the Sales of Life Insurance (Draft for Comments), which still prohibits insurance companies from selling at bank locations, but "encourages banks with insurance business qualifications to establish a professional team of insurance sales personnel".
Bancassurance business is back on the fast track of development
Since 2020, China's bancassurance business has returned to the fast lane of development, and the transformation to high-quality development has been clear. According to the "2021 Bank ** Channel Business Development Report" released by the Insurance Association of China, in 2021, the original insurance premium income of the bancassurance business of life insurance companies was 1,199.1 billion yuan, a year-on-year increase of 186%, and the new single premium was 704.1 billion yuan, a year-on-year increase of 151%, premium income and new premiums maintained rapid growth;Among them, the new single premium was 267.8 billion yuan, a year-on-year increase of 19%;Single premiums were 436.3 billion yuan, up 12% year-on-year7%；The growth rate of new orders for futures delivery is higher, and the business structure has improved significantly.
From the perspective of the structure of new insurance policies in the bancassurance business of life insurance companies, life insurance products are the absolute main force, accounting for 98% of new orders in 20217%, an increase of 02 percentage points. Specifically, new policies of general life insurance, participating insurance, universal insurance, and investment-linked insurance accounted for 37 of the total new orders5% (up 3.)2 percentage points. 1% (down 3 percentage points year-on-year.)01%；The top 10 bancassurance products in terms of sales volume are mainly increased whole life insurance and annuity products, with 6 and 7 whole life insurance products in 2020 and 2021 respectively ranking among the top 10 products.
According to industry practice, according to different types of life insurance companies, the bancassurance business is generally divided into four types of companies: "Old Seven", "Bank-based" insurance companies, "Bancassurance Seven" and a total of four other types of companiesAmong them, the "Old Seven" include Chinese Life, PICC Life Insurance, Ping An Life, Pacific Life, Taikang Life, Xinhua Life and Taiping Life, and the "bank" insurance companies include China Post Life, CCB Life, ICBC AXA, ABC Life, BOC Samsung, BOCOM Life, CITIC Prudential, China Merchants Cigna, Everbright Sun Life, Sino-Dutch Life, and the "Bancassurance Seven" includes Dajia Life, China China Life, Life Insurance, Harmony Health, Qianhai Life, Junkang Life and Tianan Life.
In general, different types of insurance companies have different strategies and different degrees of impact from regulatory policies. The "old seven" are determined to take the initiative to transform, and the bancassurance business is resilient"Bank-based" insurance companies have obvious advantages in shareholder resource endowment, and the strength of bancassurance business is becoming increasingly strongThe "Bancassurance Seven Heroes" has a radical bancassurance channel strategy and a large scale of bancassurance business, which is greatly affected by regulatory policies.
Judging from the year-on-year growth rate of new bancassurance premiums, since 2010, due to the impact of regulatory policies, the premiums of new bancassurance policies have shown significant negative growth in 2011-2012, 2017-2018 and 2020. From the perspective of the premium structure of new bancassurance policies, the "bancassurance seven" accounted for the highest proportion, but the proportion of "bank-based" insurance companies continued to increase, and the proportion of the "old seven" bottomed out from 2019.
With the increasing standardization of regulatory regulations on the development of the industry, the "old seven" have rapidly transformed from industry leaders in the bancassurance business to pioneers in industry transformation. Since 2010, the "old seven" have continued to reduce the bancassurance business (especially the bancassurance single delivery business), grasped the liberalization of the first-class examination and the demographic dividend period, and firmly transformed the individual insurance. From 2010 to 2019, the market share of the "Old Seven" bancassurance total new policies, new policies for term payment and single payment of premiums continued to decline, from % in 2010 to % in 20195%, and the market share of single-payment scale premiums has fallen even deeper.
Since 2019, the transformation of the individual insurance channel has started and continued to deepen, and the demand for capital preservation and savings of residents has been accelerated, and the "Old Seven" has once again vigorously developed the bancassurance channel as a key business, and rapidly realized the growth of the scale and value of the bancassurance business. For a long time, due to comprehensive factors such as the company's business management and control, internal assessment, etc., the business structure of the "old seven" is better, and the proportion of new bancassurance policies in the scale of their new bancassurance policies is higher than that of "bank-based" insurance companies and "bancassurance seven heroes".
"Insurance companies give full play to the advantages of shareholders, commercial banks and insurance companies have closer cooperative relations, more channel advantages, relatively low difficulty in business adjustment, and smooth development." With the intensification of supervision of bancassurance business and the gradual shift of the strategic focus of the "old seven" to individual insurance, the shareholder advantages and channel advantages of "bank-based" insurance companies have become more obvious, and the new orders of bancassurance business have generally maintained growth after 2010. In recent years, the bancassurance wholesale business of "bank-based" insurance companies has developed under control, and its market share has increased steadily, while the futures business has developed faster, the overall business structure is better, and the market share has increased even more. With the help of channels, the market share of "bank-based" insurance companies in terms of total new policies, new policies for term payment and single payment of premiums has increased from 2010 to3% continued to increase to 20219%。
The "Bancassurance Seven" has a high dependence on the bancassurance channel, has an aggressive strategy, is greatly affected by regulatory policies, and the premium of the new policy scale fluctuates greatly. The "Old Seven" has a long development time, sufficient capital and high visibility, and the transformation and development of individual insurance channels can still drive new orders and NBV to achieve good growth. However, the construction of individual insurance channels requires a lot of time, manpower and material costs, so it is common to increase the cost of bancassurance channels and promote the sales of single payment products to achieve rapid growth in the scale of premiums.
In the face of the strict regulatory environment after 2010, some small and medium-sized insurance companies represented by the "Bancassurance Seven" seized the window period when the "Old Seven" gradually faded out of the bancassurance market from 2010 to vigorously develop the bancassurance business (especially the single delivery business), and the bancassurance business expanded rapidly from 2010 to 2016, and the market share of the total new bancassurance policy, the new policy of term payment and the single payment scale premium increased rapidly and significantly from % in 2010 to 20163%, but the proportion of single premiums has always remained above 80%, and briefly touched 98 in 20152% high.
In recent years, under the guidance of regulatory policies to regulate the proportion of short- and medium-duration business, the new policy premium of the "Bancassurance Seven Heroes" has shown a trend of increasing the proportion of new policies paid in 2021: in 2021, the proportion of new policies and single payment premiums respectively4% (the proportion of single payment of premiums decreased by 17 compared with 2015.)8 percentage points).