The development trend of modern insurance in China

From the perspective of premium income, from 2014 to 2019, the premium income of China's insurance industry increased year by year, but the overall growth rate showed fluctuating changes. In 2019, the premium income of China's insurance industry was one trillion yuan, exceeding the 4 trillion mark, an increase compared with 2018, and the growth rate has also increased significantly. In 2020, affected by the epidemic, people's attention to insurance may increase, and the insurance industry may usher in a new round of rapid growth in premiums.

In 2020, affected by the epidemic, China's insurance industry will face certain opportunities and challenges. Among them, according to the performance of the acceleration of China's health insurance revenue growth during the SARS epidemic in 2003, after the new crown virus is controlled or ended, the revenue growth rate of China's health insurance is very likely to increase significantly, and at the same time drive the growth of the entire insurance industry.

The above data ** is in the Prospective Industry Research InstituteAnalysis report on market outlook and investment planning of China's insurance industry

What is the future development direction of the insurance industry, we can think from four aspects: the essence of insurance, risk management, insurance innovation and insurance supervision.

In terms of the nature of insurance. The insurance industry is essentially a risk management industry, and the operation of the insurance industry is to manage the risks by undertaking the concerns of customers about adverse changes such as death, health, illness, pension, wealth, etc., so as to obtain reasonable profits. The essence of insurance determines the basic positioning of the insurance industry and insurance products.

As far as risk management is concerned. Like the Basel Accord in the banking sector, the European insurance industry is now moving towards solvency management based on risk assessment, by focusing on the risk of each asset, understanding the operational risk and its financial risk, and comparing it at various levels, such as credit risk, asset risk, equity risk, longevity risk, property risk or injury risk, etc., in order to assess the efficiency of economic capital and the overall risk profile.

As far as insurance innovation is concerned. We should vigorously develop insurance innovation, which not only refers to the innovation of insurance products, but also includes the innovation of insurance business methods, insurance sales channels and insurance services.

Finally, as far as insurance regulation is concerned. As a necessary supplement to social insurance, the positioning of commercial insurance is very important. There should be a clear division of labor and cooperation between the basic insurance protection function and the commercial insurance function in serving the public and society.

Refer to the "2015-2020 Internet Opportunities, Challenges and Coping Strategies for China's Insurance Industry" released by the Prospective Industry Research Institute

Xiang Junbo, chairman of the China Insurance Regulatory Commission, said at the "2015 Lujiazui Forum" on the 26th that by 2020, a modern insurance service industry with comprehensive protection, perfect functions, safety and stability, integrity and standardization, strong service capabilities, innovation capabilities and international competitiveness, and adaptation to China's economic and social development will be presented to the world. China will transform from an "insurance power" to an "insurance power". To achieve this vision, China's insurance industry will continue to step up reform and innovation.

Accelerate the development of the insurance industry, from the will of the industry to the will of the state. In October 2014, the General Office of the People's Republic of China issued the "Several Opinions on Accelerating the Development of Commercial Health Insurance", which further improved the system of commercial insurance development. In May this year, the executive meeting passed the preferential tax policy for commercial health insurance, and commercial health insurance ushered in a period of development.

The state's attention and support for the insurance industry has opened up a Chinese model for the development of emerging insurance markets and activated the huge development potential of China's insurance industry.

Looking forward to the future, the development prospects of China's insurance industry are very broad, and the in-depth implementation of the four new national measures of the insurance industry and the comprehensive deepening of reform and innovation will inject vitality into China's insurance market. By 2020, a modern insurance service industry with comprehensive protection, perfect functions, safety and stability, integrity and standardization, strong service capabilities, innovation capabilities and international competitiveness, and adaptation to China's economic and social development will be presented to the world. China will transform from an "insurance power" to an "insurance power".

In order to achieve this vision, China's insurance industry will continue to intensify its efforts to reform and innovate.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

If we take modern insurance as the scope of definition, the earliest insurance industry in China in 1805 is relatively recognized by the theoretical community.

In 1801 only a few foreign merchants temporarily organized the Shantan Raid Society to cover ships and their cargo. With the development of the world, some insurance institutions in Kolkata, India, have set up a first office in Guangzhou. In 1805, British businessmen established the Jiandang Insurance Company in Guangzhou, which introduced the modern Western insurance system to China, and the insurance company operated until 1935.

Of course, there are also those who believe that the ancient Chinese dart game and relief system should be classified as the insurance industry.

If we go back in this way, the time for the development of China's insurance industry will be extended to a thousand years. However, it is quite different from modern insurance, and the theoretical community does not agree with it, so expand reading: [Insurance] how to buy, which is better, and teach you to avoid these insurance"pits"