Imagine that you purchased an insurance, but the premium for this product is not fixed, but is linked to your daily exercise volume. The greater the amount of exercise, the cheaper the premium. This was unimaginable decades ago.
Supporting the above products has become a reality, and it is currently an increasingly large insurance market in China: In 2018, the insurance coverage provided by the insurance industry has reached 689.07 trillion yuan. As of the end of May this year, the balance of insurance capital utilization has approached 17 trillion yuan. The insurance industry has become an important part of the national economy and the people's livelihood, and has become a "stabilizer" for serving the real economy and financial markets.
"At present, China's insurance industry has maintained a stable and good development trend, and the specific performance is 'three stables and three good', including industry growth, risk prevention, foreign investment expectations, stability, and innovation in insurance reform. Advancement, the insurance guarantee function has been continuously enhanced, and the insurance service capability has been continuously improved in three aspects." At the current stage of the development of the insurance industry, Xing Weiru, the party secretary and president of the China Insurance Industry Association, said.
3.8 trillion yuan in premiums and 6897 trillion yuan in insured amount
In the 70 years since the founding of the People's Republic of China, the insurance industry has achieved rapid growth both in terms of premiums and total assets. According to Xing Wei, the original insurance premium income of China's insurance industry reached 3.8 trillion yuan in 2018; the total assets of the insurance industry reached 18.3 trillion yuan, achieving steady growth and continuing to rank among the world's second largest insurance market. In the first five months of this year, the insurance industry realized a total of 2.1854 billion yuan of original insurance premium income, an increase of 14.40%.
As the size of the insurance industry continues to grow, the security function of insurance continues to increase. In particular, in recent years, the supervision has strengthened the “insurance surname insurance”, optimized the product structure, and the function of insurance service entity economy and guaranteeing the national economy and people's livelihood has been further highlighted.
"In 2018, the insurance industry provided a total amount of risk protection for the whole society of 6,897 trillion yuan, a year-on-year increase of 66.2%. At the same time, our prices and rates are declining." As the saying goes.
From the perspective of various sub-sectors, health insurance claims in 2018 increased by 34.7% year-on-year, accounting for 3% of total national health expenditures for the first time; major illness insurance coverage exceeded 1 billion people, and actual reimbursement The proportion has increased by an average of 14% on the basis of basic medical insurance, and the cumulative compensation has exceeded 19 million since the pilot.The agricultural insurance provided risk protection for the nearly 200 million households, which was 3.46 trillion yuan, a year-on-year increase of 24.2%.
Participation in supply-side structural reforms
The insurance industry played a pivotal role in serving the real economy.
For example, the relevant person in charge of China Life Insurance Group, which is a leading insurance company, said that China Life Investment Co., Ltd. has completed the capital contribution to the Guangzhou Fund and the Guangzhou Development Zone Fund in Guangzhou, and the two funds have jointly contributed 17 billion yuan, in addition to the total size of 6.7 billion yuan of the National Life Yuexiu Trust Plan. These funds will focus on supporting the construction of the Dawan District, including transportation hubs, rail transit and industrial parks. This is only part of the funds invested by China Life Insurance in Dawan District.
According to Xing Wei, in recent years, the insurance industry has fully utilized the advantages of long-term insurance funds, large scale, and relatively low cost, and has vigorously served the real economy. By the end of 2018, insurance funds had supported the “One Belt, One Road” investment of 961.2 billion yuan through various asset management products; the service development of the Yangtze River Economic Belt and Beijing-Tianjin-Hebei coordinated development reached 424.8 billion yuan and 171.7 billion yuan respectively; supporting clean energy and resources. Green industries such as conservation and pollution prevention reached 69.42 billion yuan; supporting the stable and healthy development of the capital market. In 2018, the insurance industry invested nearly 2 trillion yuan in stocks and funds, accounting for nearly 12%.
In terms of asset size, from 2004 to 2018, the balance of insurance fund utilization increased from 1.08 trillion yuan to 16.41 trillion yuan, with an average annual compound growth rate of 21.47%. As of the end of May 2019, the insurance industry totaled The assets of 19 trillion yuan and the balance of insurance funds used were 16.99 trillion yuan, maintaining a steady growth trend.
The economic ability and level of the insurance fund service entity continued to increase. Zhou Yanli, former vice chairman of the China Insurance Regulatory Commission, said that insurance funds directly financed the real economy by more than 7 trillion yuan through direct investment in bank deposits, stocks, bonds and other traditional means; through the creation of infrastructure investment plans and other insurance asset management products, direct and efficient docking Construction projects and projects. As of the end of April 2019, a total of 1,114 types of debt and equity investment plans were initiated, with a total filing (registration) scale of 2.63 trillion yuan. Formed a number of influential investment projects, such as 16 billion yuan to participate in Beijing-Shanghai high-speed rail, 55 billion yuan to participate in South Water NorthAdjusted, 66.6 billion yuan to participate in market-oriented debt-to-equity swaps, etc., has been widely recognized and highly evaluated by the society.
At the moment, deep participation in the structural reform of the financial supply side, serving the development of the real economy has become another major mission of insurance. "The insurance industry will further play a role in the high-quality development of the service entity economy. Specific measures include deepening the structural reform of the financial supply side without stopping, preventing the major risks from being resolved, and implementing new measures to expand and open up." Xing Wei said.
"allin" technology era is coming
Looking to the future, there are professionals predicting, including blockchain technology, artificial intelligence, Internet of Things, cloud computing, big data, car networking, driverless The top ten technologies, including automobiles, drones, genetic testing, and wearable devices, will profoundly influence and even subvert the development of the insurance industry. The insurance industry's generous investment in the field of science and technology and the application of the scene show that insurance technology innovation has already taken the lead in other financial industries.
In Xing Wei's view, the insurance industry has achieved remarkable results in the comprehensive use of financial technologies such as big data, cloud computing and artificial intelligence. He believes that China's insurance industry has already taken the lead in the world in many insurance technology applications.
Chairman of the People's Insurance Group Co., Ltd., Jianmin Min, believes that China's 5G technology, artificial intelligence, big data, mobile Internet and Internet of Things, biometrics, quantum technology and distributed technology have made major breakthroughs and developments. This provides important technical support for the development of financial insurance technology.
The data shows that as of the end of December 2018, Ping An’s technology patent applications increased by 9021 to 12051 compared with the beginning of the year, and the scientific and technological achievements covered the core technical fields such as artificial intelligence, blockchain and cloud.
Technology, let the insurance industry plug in the wings of soaring. China Ping An has taken the lead in launching the comprehensive “allin” technology era since 2013. According to public data, in the past ten years, Ping An has invested a total of about 50 billion yuan in scientific research and established a technology incubator fund of 6.5 billion yuan. It is expected to continue investing about 100 billion yuan in scientific research in the next decade.
In addition, Pacific Insurance Company developed "Taibao Alpha Insurance", "Yixin Bocheng Intelligent Insurance" under CreditEase, "Alipay" insurance evaluation of Ant Financial Research and the first Internet insurance company Zhongan Insurance Public securityElf, etc., are the crystallization of insurance and technology.