In 2022, we will strive to achieve profit growth faster than premium growth

2022-07-19 0 By

CNFC March 29 – (reporter Guo Weiying) Yesterday afternoon, the People’s Insurance Group Of China Co., LTD. (hereinafter referred to as “PICC”) held the 2021 results conference.The annual report shows that picC will achieve “double growth” in net profit and insurance business income in 2021.Luo Xi, chairman of PICC, said that in 2021, PICC will not blindly pursue business scale, but take the initiative to reduce quality and high-risk business, strengthen the workforce and premiums, and continue to optimize the structure, reduce risks and increase benefits.In 2022, PICC will continue to optimize its business structure, eliminate high-risk businesses, avoid negative value businesses, reduce low-value businesses and do more high-value businesses, and strive to make profit growth faster than premium growth.According to the annual report, PICC achieved 21.6 billion yuan in net profit in 2021, up 7.8% year on year.Insurance revenue reached 585.4 billion yuan, up 3.9% year on year.In addition, the annual total investment income of 63.1 billion yuan, up 11.2% year on year, the total investment yield of 5.8%.Picc Chairman Luo Xi said that from the development of 2021, we maintain strategic focus, and do not blindly pursue the scale of business, but take the initiative to reduce quality and high-risk business, do the real team, do the real premium, continue to optimize the structure, reduce risks, increase benefits.In the formulation and implementation of the 2022 business plan, we will continue to give priority to high-quality development, continue to optimize the business structure, eliminate high-risk business, do not do negative value business, reduce low-value business, and do more high-value business, especially to develop high-quality business with security and service.We should not only maintain the speed of development in accordance with China’s macroeconomic development and the overall situation of the industry, but also achieve a good level of profit growth in the improvement of business quality, and strive to increase the profit faster than the growth of insurance premiums.”There are significant opportunities for the company in 2022 from a policy, industry and demand perspective,” he said.In terms of the policy environment, the CENTRAL government has made it clear that this year’s economic work should give top priority to stability and seek progress while maintaining stability. Insurance can play an important role in providing services to “seek progress while maintaining stability”. Many recent policies have also set clear requirements for the insurance industry.For example, on rural revitalization, the Central Conference on Rural Work made clear arrangements for ensuring food security and accelerating the spread of full-cost insurance and planting income insurance, which helped shift agricultural insurance from “covering cost” to “covering output and income”.Introduced recently in the pensions, health undertaking development, the “difference” countries and pension service system planning “, clearly put forward to promote and standardize the development of the third pillar of endowment insurance, and promote the development of personal pension, steadily build a long term care insurance system, build system of long-term care insurance policy framework, support to intensify investment in the pension services of insurance funds.All these have provided new development opportunities for the insurance industry and PICC.He also said that in the past year, we have significantly improved our capability and level of serving the national strategy through solid implementation of the “six strategic services”. In the future, we will continue to expand the incremental premium resources in the overall service situation, which is the biggest development opportunity for PICC.From the perspective of industry development, although China’s insurance industry is the second largest insurance market in the world, the depth and density of insurance are still relatively low, which has not reached the global average level. An important reason for this is that the structure of insurance types is not balanced.For example, in the field of property insurance, auto insurance still accounts for the largest proportion of insurance, liability insurance, catastrophe insurance and management of emerging risks account for a very low proportion.In the field of life insurance, the product structure is still dominated by the traditional life insurance, while the development of endowment insurance and health insurance with guarantee and service functions lags behind.At present, PICC is also accelerating the optimization of its business structure, which will create new development momentum.From the perspective of insurance demand, a large number of insurance “real demand” of individuals, legal persons and governments has not been satisfied.For example, in terms of government business, the Chinese government is deepening the reform of “delegating power, delegating power, delegating power, and providing services”. Many functions of public services and social governance can be undertaken through the insurance mechanism.In the past year, we strengthened cooperation with the Ministry of Emergency Management, the National Meteorological Administration and other ministries and commissions, customized service lists for 14 provinces (municipalities) including Shanghai and Beijing, and promoted various types of governance insurance.This is an important direction for our future development.Overall, we believe that there are still many business opportunities to be explored in the future by deepening the supply-side structural reform of insurance and meeting the changes in customer demand.According to the annual report, picC achieved a net profit of 22.6 billion yuan in 2021, up 8.4% year on year.In addition, the insurance business revenue reached 449.5 billion yuan, a year-on-year growth of 3.8%.As of December 31, 2021, PICC occupied 32.8% of the property insurance market.In terms of auto insurance, the premium market share increased by 1.4 percentage points year-on-year, and the comprehensive cost rate of auto insurance was 97.3%.Nearly 90 million vehicles were covered by auto insurance, up 9.6% year on year.Among them, the renewal rate of domestic vehicle insurance reached 75.9 percent, up 2.8 percentage points year-on-year.Insurer in jersey, President, said the car insurance company will stick to the bottom line, ensure a steady share as the main line, in-depth practice have efficiency development philosophy, the “mediation” ideas, optimize the business structure, differential operation, fine management idea and innovation driven development philosophy, constantly promote the development of car insurance to high quality transformation.Specific measures: first, adhere to the principle of beneficial development of car insurance.Lock the target comprehensive cost rate by classification, strictly implement price and fee linkage, ensure that price, cost and risk are basically matched, and achieve the annual profit of the policy.Second, focus on the development of family vehicles and continue to optimize the business structure.Strengthen resource integration and increase the share of new family vehicles.For the existing business, we adhere to the working idea of “raising and renewing insurance, upgrading insurance”, and continuously improve the insurance renewal rate and the quality of the insurance renewal business.Third, insist on strengthening direct control channel construction, eliminate intermediary, improve customer stickiness and loyalty.Yu Ze said that in 2022, the loss ratio and expense ratio of traditional auto insurance will remain relatively stable.Due to the new energy vehicle terms officially online in December 2021, the new energy vehicle loss rate under the new terms increased, the expense rate decreased, it is expected that in 2022, the company’s auto insurance loss rate is stable slightly higher, the expense rate is stable slightly lower, and the overall comprehensive cost rate remains stable.It is expected that the policy annual comprehensive cost rate will be controlled within the established target in 2022.From the non-auto insurance sector, the annual report shows that the picC property insurance premium compound growth rate reached 17.9% in the past five years.The premium income of individual non-auto insurance reached 29.6 billion yuan, up 55.1% year on year.The ratio of auto insurance customers to non – auto insurance customers is increasing.According to Yu ze, personal health insurance business will continue to grow rapidly in 2021, with personal accident insurance and personal health insurance increasing by 56% and 81% respectively.The driving insurance penetration rate among home auto customers increased from 43% in 2021 to more than 60% in early 2022.In 2022, the company will promote the upgrading of differentiated personal non-auto insurance “product + service” supply, improve the penetration rate of customers’ personal non-auto insurance products, strategically promote the overall layout of personal health insurance, including urban benefit insurance and other businesses, and promote the innovative development of family property liability insurance business.It is expected that the company’s personal non-auto insurance business will continue to maintain a higher growth rate than the market in 2022.The annual report shows that in 2021, the income of PICC’s life insurance business increased by 0.7% year on year;Revenue from picC’s health insurance business grew 11 percent year on year.As of December 31, 2021, PICC life insurance and PicC Health had a market share of 4.2% in the life insurance market.The value of new business in one year, picC life insurance and picC health are differentiated.Among them, picC life insurance decreased 40.6% year on year, picC Health increased 8.8% year on year.As of December 31, 2021, picC has 185,944 salesmen of its life insurance “large insurance”, with an average monthly premium of RMB 2,993.59 for the first year.In terms of the third pillar pension business, Wang Wen, vice president of PICC Life Insurance, said that picC life insurance has carried out the housing reverse mortgage pension pilot since 2016, and now has carried out business in 29 cities.In 2018, China participated in the pilot program of individual tax-deferred commercial old-age insurance;In 2021, it will become one of the first pilot institutions for exclusive commercial endowment insurance.According to him, from the launch of the exclusive pension trial to the end of March this year, the total premium income of the exclusive commercial pension insurance products of PICC life insurance has reached 120 million yuan, covering nearly 70,000 people, including 15,000 people who have flexible employment in new business types such as online ride-hailing drivers.He said that to promote the balanced development of China’s multi-pillar pension security system, improve the pension replacement rate and increase the total amount of pension reserves, we need to vigorously develop the third pillar commercial pension insurance.This kind of business has huge development space in the future, leading insurance companies and professional pension insurance companies usher in greater development opportunities.In the future, the development of pension insurance financial business in most financial institutions will have a large growth range, the market space is very broad.The annual report shows that PICC achieved a net profit of 260 million yuan in 2021, up 622.2% year on year;The scale and premium of Internet insurance business reached 14.437 billion yuan, up 13.9% year on year.To be specific, the bank insurance business of PICC achieved 6.992 billion yuan of original insurance premium income in 2021, up 40.6% year on year.The premium income of individual insurance reached 17.093 billion yuan, up 10.7% year on year.The premium income of group insurance reached 11.731 billion yuan, basically the same as that of the previous year.As of December 31, 2021, the number of sales personnel of PICC health insurance is 6,309, and the average monthly premium of sales personnel is RMB 1,872 in the first year.When it comes to the third pillar construction of endowment insurance, Luo Xi said that in China, we has not established a mature health management and health insurance business mechanism, we made a series of thinking in this aspect, recently we are looking to establish “health project” project, to preserve health in-depth reform, we have basically completed research process,It’s going to be finalized in April.(Meng Qiyun)