The general manager of a life insurance company with a high premium of joint insurance told the Securities Daily that, with the strengthening of supervision and the increasing fluctuation of the surname insurance and the rate of return of joint insurance, some insurance companies have not done joint insurance business in recent years, but if a product can provide high returns to customers, it has the significance and value of existence. This is also one of the reasons why the company has been carrying out joint insurance business.
Only three products lost money in the first half of the year
From the monthly average income, from June 2018 to June 2019, the average returns of the investment accounts with accessible data are - 2.55%, 0.20%, 2.15%, 0.21%, 3.45%, 1.23%, 1.66%, 2.29%, 4.90%, 2.63%, 0.21%, 2.01%, 1.65%, respectively. Overall, there is a positive correlation between the return of the joint insurance account and the fluctuation of the stock market.
Overall, equity-based joint venture insurance has enjoyed a good overall growth in the first half of this year. The highest earnings in the first half of this year were Taikangs positive growth type, with a total earnings of 38.7% in the first half of this year. However, the mixed and bond type insurance is limited by the investment target, and the investment income is relatively stable.
A 24% year-on-year decline
According to the statistics of the Journal of Securities, in the first five months of 2019, the new fee for the independent account of joint insurance investment reached 18.1 billion yuan, which was 24% negative growth compared with 23.7 billion yuan in the same period last year.
However, compared with the growth rate in 2018, the negative growth has narrowed down. Last year, due to the large fluctuation of the equity market, the company lost money for many months. The new premium income of the company was 33.285 billion yuan, a decrease of 29.24% compared with the previous premium income of 3.8 trillion yuan in 2008. Compared with the original premium income of China, the scale of the companys insurance investment accounted for less than 1%.
From the current number of companies operating joint insurance, the CBRC has not disclosed the specific data of this years joint insurance business, but 27 insurance companies (accounting for about 30% of the total number of life insurance companies) had additional fees in their independent accounts last year.
From last years specific operating conditions of insurance companies, Taikang Life ranked first in the income scale of new premiums for joint insurance, and the new premiums were 13.545 billion yuan. Second is Hongkang Life, with an additional premium of 9.291 billion yuan; third is Guangda Yongming, with an additional premium of 3.988 billion yuan. Overall, the scale of new premiums for Chinese-funded insurance companies has decreased by 32.52% compared with the same period last year. Five of the nine Chinese-funded insurance companies that operated joint insurance last year achieved positive growth in the scale of joint insurance. Two of them increased significantly, namely, China Life and Hongkang Life, with growth rates of 1889% and 31.3%, respectively, while the other four increased negatively.
Ping An Securities Research Daily pointed out that compared with overseas, joint insurance accounts for a very low proportion in Chinas life insurance, and it belongs to the insurance products that are not sensitive to interest rates. Under the low interest rate environment, with the decline of the expected income of traditional life insurance, joint insurance has certain advantages. In addition, the development of joint venture insurance brings business opportunities to insurance management, public funds and securities companies.
It is necessary to remind investors that the insured should choose appropriate investment accounts according to their financial needs and risk tolerance when they choose to buy and invest in joint venture insurance. Because insurers have no commitment to guarantee customersearnings, customers can not regard the past performance of joint venture insurance as the sole criterion for the expected earnings of products. For investment schemes with heavy equity positions such as growth and radicalization, it is very likely that there will be investment losses or even huge losses in the bear market.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425