Hao Yansu internationalization of Chinese insurance industry appears lacking phenomenon

Hao Yansu, President of the Central University of finance and insurance   this year is the 10 anniversary of the China's accession to the World Trade Organization. These 10 years, China's insurance industry and other industries in the process of reform and opening up forward, objective assessment of the insurance industry in "accession of 10", for better play to the functions of the insurance, support national development strategies, participation in social management, risk management service is of great significance. China insurance market in open process in the fast development recommended reading insurance weekly: increased warehouse investment over 30,000,000,004 months insurance funded deposits moved near billions of cast even insurance May then case Waterloo income differentiation country life cast even insurance success escape top 5 name foreign executives joined China peace Qian May Beijing insurance intermediary was penalty million history with shares mass insurance holding 20% Qiming: shocks city in the how mining Daniel unit 2010 end, in the funded insurance company business income from 2001 of 207.6 billion yuan growth to 1.3893 trillion yuan, total assets from 2001 of 450.2 billion yuan growth to 4.786 trillion yuan, respectively is "WTO" Qian of 6.7 times times and 9.8 times times; foreign insurance company business income from 2001 of 3.3 billion yuan growth to 63.4 billion yuan, total assets from 2001 of 8.9 billion yuan growth to 262.1 billion yuan, respectively is market yiqian of 19 times times and 29.3 times times. As the "WTO entry" before the number of establishments of foreign insurance companies, size of business income and assets is very limited, thus forming its insurance business revenue and total assets growth rate percentage ahead of the Chinese-funded insurance companies, foreign insurance companies and that is the fastest-growing group of the insurance market in China. The end of 2010, total of 52 foreign insurance companies operating in China. Calculated in accordance with income from insurance business, these open in Shanghai, Beijing, Guangdong and Shenzhen earlier and foreign capital more focused areas, foreign market share has accounted for 17.9%, 16.3%,8.2% and 7.9% respectively. From the perspective of national market average conditions, foreign insurance companies ' growth in market share from per cent in 2001 to per cent in 2010, while the market share in domestic insurance companies in 2010 95.6%. The share of foreign investment in China's insurance market year is the highest per cent in 2005. From 2001 to 2010, business revenue and total assets of foreign insurance companies although the growth rate is faster, but on the performance of the market share was out of the "convex-shaped" curve. At the same time, by the end of 2010, there were 25 Chinese-funded insurance companies in the creation or development in the process of introducing foreign capital shares in proportion to less than 25%, average tenure of 25 shares of Chinese-funded insurance companies of foreign capital shares for 17.7%, and from the rapid growth of the Chinese-funded insurance companies share a huge investment value. Regardless of how 10 years of Chinese and foreign insurance companies market performance, during the opening of China's insurance market, achieve the overall strength of China's insurance industry and service capacity, institutional mechanisms, regulatory leap higher levels of liberalization and opening up to have become an important feature of China's insurance industry. China has become the world's important emerging insurance markets. At the same time, "WTO entry" for establishing sound operation of China's insurance industry concepts, innovation marketing, innovation and product type, introduce advanced technology and qualified personnel, establishment of insurance supervision system, has an important role, insurance has become a supporting national economic development, improve the construction of a harmonious society and the whole of society important means of risk management. Similarly, China's insurance market share came in the first 4 bits of large Chinese-funded insurance companies in foreign countries listed have achieved positive results, for the 4 leading insurance company overall management of the development of insurance market driven changes, improvement of their management and the idea of progress and development of Chinese insurance companies, have played a very important role. In the past 10 years, a market system, broad, honest management norms in the field of service, preventing effective, integrated more competitive risk, integrating development speed, quality and efficiency, with the level of national economic and social development and meet the production needs of the masses of modern insurance industry has been formed. Internationalization of Chinese insurance industry appears weak in Chinese economy in "WTO" in the future, for the increasing degree of dependence on international trade, there are already close to 70%, the world's total GDP in countries with higher for countries with the highest degree of dependence on international trade. Due to the development of foreign trade, many economic areas related to international trade and business in China has developed rapidly. However, for purposes of the insurance industry's "WTO entry" 10, industry-wide weak international phenomena have emerged. As we all know, China's insurance industry derived from marine insurance, the new China's insurance industry is to support as the basis for the formation and development of international trade, even in the "cultural revolution" of 10 years, the domestic insurance industry supplies a comprehensive closure, but the marine insurance business has been associated with international trade operations, and thus laid the voice of China's insurance industry in the international insurance market. However, "WTO entry", as in domestic property insurance companies pay more attention to the domestic market in China, low technology content of motor vehicle insurance as the main business, coupled with trade reform in China, and the marine insurance business of international trade to shrink as the rapid development of China's import and export trade. At present, the global market size of about US $ 30 billion in marine insurance, marine insurance, including Britain, Japan, Germany and the United States occupies about 60% of the big powers. As the first Shanghai port cargo throughput in the world, its shipping insurance per cent of world shipping insurance market share of less than 1%, Chinese insurance companies will cover all international shipping insurance in business less than 3% of the global market, Chinese insurance companies in the field of property insurance in technology with a high level of traditional business is losing influence in the field of marine insurance. The other hand, while many foreign property insurance company in China is still the marine insurance business as the main business, but due to the limited size of the foreign property insurance market, coupled with Chinese property insurance companies is still no sign of importance to the marine insurance business, our insurance for our invisible contribution to the trade has been falling to the lowest point of history. Due to the strong growth of our economy, China's economic aggregate has been ranked 2nd in the world, China's economy is from the "WTO entry" initial capital input into a form of both capital and capital input, and capital to loseOut of the total proportion of China's economic ladder. Important characteristic of capital is "go". With the real economy of "going out", the financial services industry through "going out" support our capital investment and overseas development. At present, China's banking industry was established in more than 50 countries and regions in the world has nearly 2000 branches, and in the overseas development of enterprises in China as the main customers. However, China's insurance industry in the "go" on the issue of slowness, not citing greater demand in the domestic market for the national "go" attach enough importance to the development strategy. At present, the layout of the overseas Chinese-funded insurance companies only to single digits, forget the insurance industry itself is designed with the "go" has the "escort" function. History, 200 years ago the British insurance this service model to China in order to protect their capital needs. Similarly, at present none of the foreign property insurance companies operating in the Chinese market is not for the development of national or regional capitals in China as its main target. Therefore, the insurance industry to "internationalize" weakness question indicates that China's lack of insurance for correct understanding and a deep understanding of national economic development strategies. China insurance regulatory Commission recently repeated to improve the capacity for integrated risk management of insurance, risk management is the most basic elements of disaster loss prevention and healthy living guidelines. Foreign-owned insurance companies faced "localization" dilemma "localization" is not simple to integrate into the local market, but also the support of the local market for foreign investors and the status of implementation of national treatment. Due to system limitations, foreign legal entities in China insurance company, did not in fact enjoy national treatment in domestic legal entities as insurance companies. In the property insurance market, "high risks" Ordinance to Chinese insurance companies can operate in "high risks" requirement will shut from foreign capital. Although the motor insurance business to occupy the market share of property insurance market for more than 75%, but people become after the body of the motor insurance business customers, much criticism has been about car insurance was not interrupted. In this case, because foreign capital cannot operate "high risks", lead to foreign capital is hard to do something in a commercial vehicle insurance market, people can't actually compare for vehicle insurance services in domestic and foreign investment, criticized motor insurance market could only be borne by the Chinese insurance companies. Now that the motor insurance market issues a lot, why don't you can open "high risk" foreign "into", have a look and draw foreign capital is coping with the motor insurance market issues. In the life insurance market, regulators ' expectations through the diversification of business entities and insurance service of orderly competition to break the control of large companies for market share, but foreign companies set up branches in batch process caused by obstacles faced by foreign insurance companies face difficulties in marketing. Due to system institutions established there, some for Sino-foreign joint venture companies and foreign shareholders are working together to take circuitous development policy, by reducing the proportion of foreign capital shares to the 25% deadline, transformed into Chinese-funded insurance companies, and rapid growth by leaps. In November 2005, the Chinese life insurance operation, PICC holding company to 51% per cent and the absolute majority, while 3 other shareholders from Thailand Bangkok Bank, the Asian financial group (Holdings) and Japan Sumitomo life, occupy a total of 49% shares. In 2006, opened as a joint venture life insurance life insurance premium income of $ 850 million in the first year, the life insurance industry ranked 19, assets of $ 2.1 billion. In June 2007, the Chinese people's insurance group successfully persuaded the foreign equity down to 3 foreign shareholders 20%; year premium revenue $ 4.36 billion, ranked 9th, assets of $ 8.4 billion. After reformed as the Chinese-funded insurance companies, life insurance life insurance quickly realize the layout of branches throughout the country, and through a unique sales model and product of extraordinary development over the next 3 years. In 2010, the company's premium income $ 84.5 billion, leapt to 6th place, an increase of 60%, assets exceeded $ 186 billion, is the fastest-growing business on the market in recent years, growing the best life insurance company. Although Japan Sumitomo life insurance company life insurance life insurance shares held cut from 29% to 10%, but its original equity investment has value added approximately 65 times. Therefore, if the restrictive system for joint-venture insurance company in China is not adjusted, so those who adhere to the holdings in the Chinese market and large scale holdings (over 25%) policy of foreign shareholders, value added will be lagging behind those of its equity "situation" to less than 25% shares in the proportion of foreign investors in domestic insurance companies. Chinese identity and foreign status classification regulation policy in the process of development of the market, and it is to test the confidence of foreign capital for China market, foreign investors must be strategic investors and financial investors or strategic and financial investors who make judgments and choices. Similarly, regulatory authorities should also go for this joint venture-funded "money", and Sino-foreign joint ventures "make a little money" phenomenon of attention, and try to make some policy adjustments.