Chinese health market to receive boost
The news that China Pacific Insurance’s joint health insurance venture with the Allianz Group will begin operations in the first half of next year has been welcomed by the industry. The new company, CPIC Allianz Health Insurance, aims to tap into the growing demand for health insurance products among the Chinese population, boosted by a US$162-million investment from China Pacific. Allianz will be a minority partner in the venture, although Gao Guofu, chairman of China Pacific, said his firm wants to benefit from Allianz’s years of experience in administering health insurance products, while Allianz will benefit from the tie-up with China’s third largest insurance firm, which has an extensive network and governmental support.
The news that China Pacific Insurance’s joint health insurance venture with the Allianz Group will begin operations in the first half of next year has been welcomed by the industry. The new company, CPIC Allianz Health Insurance, aims to tap into the growing demand for health insurance products among the Chinese population, boosted by a US$162-million investment from China Pacific. Allianz will be a minority partner in the venture, although Gao Guofu, chairman of China Pacific, said his firm wants to benefit from Allianz’s years of experience in administering health insurance products, while Allianz will benefit from the tie-up with China’s third largest insurance firm, which has an extensive network and governmental support.
Meanwhile, the Xinhua News Agency in China has announced that the country’s state council has unveiled plans to boost the development of the insurance industry, raising premium income so that it accounts for up to five per cent of gross domestic product by 2020. As part of its development, the government wants the industry to play a more significant role in the country’s nascent social security network. Under the plans mooted by the state council, Chinese citizens could be required to pay around ¥3,500 (US$565) each in premiums annually. Xinhua reported: “Commercial insurance will become the primary undertaker of individual and household programmes and an important supplier of corporate pensions and health insurance.” The introduction of policies covering catastrophic events should also help the insurance industry to play a ‘bigger role in the prevention and relief of disasters and accidents’, continued the Agency.