Date post: | 04-Apr-2018 |
Category: |
Documents |
Upload: | rohit-joshi |
View: | 218 times |
Download: | 0 times |
of 44
7/30/2019 Insurance Trade With China_Updated
1/44
ChinaHealth Insurance
International MarketingAssignment The China Factor
Amit Mani Tripathi, Rollnu 11Shivam Mishra, Roll nu
10Nitish Narayan, Roll nu
7/30/2019 Insurance Trade With China_Updated
2/44
Where does china rank in terms of size?
7/30/2019 Insurance Trade With China_Updated
3/44
19.18% of
world population
7/30/2019 Insurance Trade With China_Updated
4/44
History... Ancient Chinese civilization
flourished in the fertile basinof the Yellow River in the
North China Plain. Earliestdynasty - Xia dynasty of theYellow River basin (approx.2000 BC)
In 221 BC, the Qin Dynasty
first conquered severalstates to form a Chineseempire
The Republic of China,founded in 1911 after the
overthrow of the Qingdynasty
In the 19461949 phase ofthe Chinese Civil War, theChinese Communist Party
defeated the nationalistKuomintang in mainland
7/30/2019 Insurance Trade With China_Updated
5/44
Sneak peak
Chinese proclaim themselves "Lung Tik Chuan
Ren" which translates to descendants of the
The dragon is regarded as the symbol of theChinese
It's easy to tell the difference between Chinese,Korean and Japanese dragons. Just count thedragon's toes. Chinese dragons have five toes
Korean dragons have four toes Japanese dragons have three toes
Enter the Dragon
7/30/2019 Insurance Trade With China_Updated
6/44
Sneak Peak
China surpassed the United States
as the world's largest automobilemarket in 2009 Annual car sales in China may rise
as high as 40 million by 2020
Side-effect of the rapid growth ofroad network a significant rise in traffic accidents in
2011, 62 thousand accident deaths Pollution
Car Nation
carboncredits
insurance
opportunities
7/30/2019 Insurance Trade With China_Updated
7/44
China will add 400 millionpeople to its urban populationby 2025
Urbanization rate increasedfrom 17.4% to 46.8% between1978 and 2009
Between 150 and 200 millionmigrant workers returninghome to the countrysideperiodically with their earnings
Training
IT
opportunities
Sneak Peak
Urbanization
7/30/2019 Insurance Trade With China_Updated
8/44
Trivial Crucial Facts
When you write your name in China you putyour family name first then your first name.
There are about 42,000 characters inChinese language. An adult is only
expected to know 5,000 of them.For example, meansAmerican marriages are made in china
30% of Chinese adults still live with their
parents.Approximately 200 million people in China
live on less than $1 a day.
7/30/2019 Insurance Trade With China_Updated
9/44
China is the source of 68% of theworlds "pirated" goods.
China produces 66% of the world's
garlic, 15 billion pounds in 2009. Nextare South Korea 6%, India 5%, andthe USA 2.5%.
Trivial Crucial Facts
7/30/2019 Insurance Trade With China_Updated
10/44
Social Environment
Peoples Republic of China VsRepublic of China
(1912) Qing Dynasty overthrown by
revolution under Sun Yat Sen. Republic ofChina established.
(1912-1946) Struggle between KMT andCPC
(19461949) Chinese Civil War.Communist Party of China establishPeoples Republic of China
7/30/2019 Insurance Trade With China_Updated
11/44
Social Environment
Population : 1.34 Billion
Population below poverty line: 2%
Literacy Rate : 90.92%
Life Expectancy : 71.44 yrs Male: 69.71 yrs
Female : 73.26 yrs
7/30/2019 Insurance Trade With China_Updated
12/44
Social Environment (contd.)
Labor Force : 812.7 million
agriculture40%
industry27%
services33%
Labor force distribution
7/30/2019 Insurance Trade With China_Updated
13/44
Social Environment(contd.)
Official Language : Mandarin
Other Major Languages : Wu, Yue(incl. Cantonese), Min , Xiang, Gan
and Haka Major Religions : Buddhism, Taoism,
Chinese Folk Religion
Strong sporting culture. Basketballgaining popularity amongst Youth.
7/30/2019 Insurance Trade With China_Updated
14/44
Cities
7/30/2019 Insurance Trade With China_Updated
15/44
Legal Environment
Under the World Trade Organization (WTO) framework,the Chinese government lowered entry barriers toforeign insurers, allowing them to establish joint-ventureinsurance firms in China
As of 2007, China had 100 insurance companies, 59 ofwhich are domestic-funded and the rest 41 are foreign-funded.
Investors may consult the Peoples Republic of Chinasembassies or consultants stationed in their respectivecountries or regions. Alternatively, they can contact thelocal governments Department of Promotion of
International Trade - the department in charge of thepromotion of foreign trade and foreign investment.
7/30/2019 Insurance Trade With China_Updated
16/44
Legal Environment (contd.)
Main Foreign Investment Laws andRegulations Law of Chinese-ForeignEquity Joint Ventures and itsimplementation regulations:
Law of Chinese-Foreign Contractual JointVentures and its implementation regulations Law of Wholly-Owned Foreign Enterprise
and its implementation regulations Law of Foreign-invested enterprises, the
income tax and its implementationregulations
Law on the Protection of TaiwanCompatriots Investment
7/30/2019 Insurance Trade With China_Updated
17/44
Economic Environment
GDP:- $ 7.3 trillion (2012 est. Nominal Value)
GDP growth:- 9.5% (2011 est.) (CIA World fact book)
Currency : Yuan ($1 = 6.3 Yuan)
Per Capita Disposable Income :- $3,243 (2012 est.)
Unemployment Rate:- 6.1%
Inflation rate:- 2.97%
Population below poverty line 13.4% (2012 est.)
7/30/2019 Insurance Trade With China_Updated
18/44
Economic Environment (contd.)
Labor force: 815.3 million (2010); agriculture 10.2%,industry 46.9%, services 43% (2010 est.).
Exports: $1.581 trillion (2010 est.): machinery and
equipment, plastics, optical and medical equipment, ironand steel.
Imports: $1.327 trillion (2010 est.): machinery andequipment, oil and mineral fuels, plastics, optical and
medical equipment, organic chemicals, iron and steel.
Ranked 8th in FDI as per CIA World Fact book in 2010
7/30/2019 Insurance Trade With China_Updated
19/44
Political Environment
The People's Republic of China, alongwith Vietnam, North Korea, Laos, andCuba, is one of the five remaining
official communist states in the world. The country is ruled by the Communist
Party of China
President : Hu Jintao Premier : Wen Jiabao
7/30/2019 Insurance Trade With China_Updated
20/44
Political Environment (contd.)
Government holds a strong power on theeconomy.
Insurance business in China is supervised by
the CIRC, under Insurance Law,
Provisions on the Adminstration of InsuranceCompanies, and Law of on Anti-MoneyLaudering.
Microinsurance policy backed up by theChinese government, experimenting in areasincluding Sichuan Province.
7/30/2019 Insurance Trade With China_Updated
21/44
Technology Environment
Internet users:-500 million (2011)
Internet hosts: 15.251 million (2010).
China Telecom alone serves 55 million broadband
subscribers
Tianhe-1A worlds fastest supercomputer developed in 2010.
China has been pioneering the deployment of pebble bednuclear reactors, which run cooler and safer than
conventional nuclear reactors.
In 2011, China unveiled a prototype train capable of reachingspeeds of 310 mph (500 km/h), the first ultra-high-speed traindeveloped solely by its domestic railway industry.
7/30/2019 Insurance Trade With China_Updated
22/44
Technological Environment (contd.)
In September 2011, the first Chinese space stationmodule, Tiangong-1, was successfully launched, markingthe first step in a decade-long project to construct a largemanned space station.
made its first attempt at the robotic exploration of Mars inNovember 2011.
China conducted a successful test of an anti-satellite
missile.
JL-2 missile, a new submarine-launched nuclear ICBMwith multiple-warhead delivery capabilities.
7/30/2019 Insurance Trade With China_Updated
23/44
Member at WTO
The World Trade Organization (WTO), like manyclubs, denies patrons the right of automaticreadmission.
Having quit the organization's predecessor shortlyafter the Communist revolution of 1949, Chinahad to wait 15 long years to gain entry afterreapplying in the 1980s.
The doors finally opened on December 11th 2001.The price of re-entry was as steep as the wait
was long.
China had to relax over 7,000 tariffs, quotas andother trade barriers.
7/30/2019 Insurance Trade With China_Updated
24/44
Healthcare Development in China
7371.468.667.9
57
35
0
20
40
60
80
1949 1957 1981 1990 2000 2005
Life expectancy at birth increased from 35y in mid-1950s to 73y in2005!
7/30/2019 Insurance Trade With China_Updated
25/44
Healthcare Development in China
1949 to 1960s Gradually established a health system inline with the national situation at thattime
1960s to late1970s Hardly any progress made except for inrural areas
Late 1970s tomid1990s
Reform exploring and progressing
Mid1990s up to now Further reforms have been being carriedout
7/30/2019 Insurance Trade With China_Updated
26/44
Grey Areas
Health insurance system: Some part of the population was still not covered
by the health insurance systems;
Lack of integration of different health insurancesystems, especially challenges from the mobility ofthe population;
Level of assurance and government investment arestill relatively low;
Reform is desirable in the mode of payment;
7/30/2019 Insurance Trade With China_Updated
27/44
To cover basic medical insurance system in an all-roundway, and ensure the participation rate of basic medicalinsurance scheme for urban and rural residents to reach90% or higher.
Basic Medical Insurance System for UrbanEmployees
Basic Medical Insurance System for Urban Residents
New Rural Cooperative Medical Care Scheme To raise the percentage of medical costs for
hospitalization in insurance, and incorporate outpatientfees of common diseases and frequent diseases intomedicare reimbursement.
To provide hassle-free insurance to university students,people employed flexibly, retirees from bankrupt state-owned enterprises, retirees and workers of ill-functioningcompanies, and farmer-turned workers.
To appropriately address medical insurance for migrantpopulation.
To improve the urban and rural medical relief system.
Key Reforms Required for ImprovingHealthcare Insurance
7/30/2019 Insurance Trade With China_Updated
28/44
China Regulator: To Open InsuranceMarket More To Foreign Firms: Wu Dingfu, chairman of the ChinaInsurance Regulatory Commission
The head of China's insurance regulator said China will furtheropen its markets to foreign competition, apparently addressingrising complaints among foreign financial institutions abouttheir shrinking shares in China's domestic market.
"China's insurance market will become one of the world's mostimportant markets in the coming years, and provide hugedevelopment potential for foreign insurers,
Wu said he expects China's insurance market, which is now theworld's sixth-largest insurance markets by premiums, to
keep high growth rates in anticipation of a robust economy in thecoming years.
"China will further open its insurance market to foreigncompanies, and let foreign insurers play a bigger role in the localmarket," Wu said, without elaborating.
7/30/2019 Insurance Trade With China_Updated
29/44
Product: Health Insurance Key Benefits
Comprehensive coverage for your family with floater benefit Flexibility to structure the premium as per individuals requirement
Entry age no bar- Minimum entry age 3 months
Guaranteed lifelong renewability
Option of choosing 1 or 2 year policy period as per plans offered
No medical tests for insurance cover below 25 years age Cashless claims facility at over 4,000+ network hospitals across
China
Continue to enjoy quality service even during claim settlementswith our own in-house health claim processing and wellness team
Avail tax benefits under China Income Tax Act 1961
Get additional bonus for every claim free year
EMI facility is available
Keep your family secured even against expenses forhospitalization due to Natural Calamities
Existing diseases will be covered under the insurance
7/30/2019 Insurance Trade With China_Updated
30/44
Emotional Benefits:
Sight: Our Offices will be attractive, modern and well architected. Specialwaiting rooms, comfortable chairs for customers and employee. (goodlooking agents)
Sound: In customer waiting room we will play soothing and relaxing music.
Smell: Use of room fresheners in all the offices
Skin: hygienic environment and comfortable chairs.
Simplicity: Offices and agents will be customer friendly. The handouts andbroachers will be deigned with utmost simplicity.
Snob Value: Acting in accordance with our beliefs and values, Completeprotection, immediate response during any complains.
Taste: N\A
7/30/2019 Insurance Trade With China_Updated
31/44
Apex Body Approval
The China Insurance Regulatory Commission (the"CIRC"), established on November 18, 1998
Formulate policies for developing the insurance industry
Scrutinize and approval of insurance companies,subsidiaries, insurance holding companies
Examine and approve the qualifications of managers of
various insurance companies Pricing regulation, insurance schemes
Supervise the financial health of insurance companies
Supervise policy-oriented insurance and compulsoryinsurance
Supervise fair competition in industry Supervise insurance companies with overseas operations
Create framework for insurance industry for information, risk,forecast, supervision.
To undertake other jobs delegated by the State Council
7/30/2019 Insurance Trade With China_Updated
32/44
Understanding Chinese Regulatory Strategy : A Key FirstStep in Approaching the Market
The regulatory framework for the insurance sector was codified inthe "Insurance Law of China," promulgated in 1995.
Nonlife insurance approval is required to establish a representativeoffice in China.
The Chinese policy regarding life insurance has been to require
foreign life insurance companies to form joint ventures with domesticcompanies with limit foreign equity share to 50 percent
Management control must also be shared.
Health insurance, foreign life companies (JVs) may be establishedonly in "open" cities (currently Shanghai and Shenzhen).
7/30/2019 Insurance Trade With China_Updated
33/44
Third Party Inspection
7/30/2019 Insurance Trade With China_Updated
34/44
Pricing:
The Chinese market for most products, including insurance, is highlyprice sensitive.
Product pricing is subject to approval by CIRC.
Companies are allowed to set prices within a limited range.
Currency Sensitivity: Chinese Yuan (RMB)will be the trading
currency Forex Rate: 1 Chinese Yuan = 8.7138 Indian rupees
Philosophy : Cost + Fair Play
We have four international Medical Insurance plans
7/30/2019 Insurance Trade With China_Updated
35/44
Place:
Corporate HQ and Insurance Office at Queen Marys Hospital Campus inHong Kong.
Tie up with Bethune International Peace Hospital and Peking Union MedicalCollege and Hospital at Beijing by setting up information kiosks and Salesoffice.
Nodal Office at Renji and Xinhua Hospital at Shanghai with suitably trainedpersonnel to assist Clients with their queries regarding the Insurance.
Partnership with Australia and New Zealand Banking Group Limited (ANZ) atDongcheng & Industrial Commercial Bank of China (ICBC) at XichengDistrict to gain access to customers from Rural Areas.
A Toll Free Number that operates 24*5 for any clarifications regardingpayment / Renewal & Cancellation.
A highly interactive and updated Web Interface customizable to both English,Mandarin and Cantonese which automates the entire policy purchaseprocess, with suitable payment options.
7/30/2019 Insurance Trade With China_Updated
36/44
Promotion:
Target Prospects, Customer, End User
Opinion Makers:
Private CompaniesBanks
Testimony Creators: Prestigious Users (Use of CRM)
Celebrity endorsement(Common Public)
7/30/2019 Insurance Trade With China_Updated
37/44
Promotion Medium:
Bancassurance : 50% Direct Sales: 10%
Telemarketing: 5%
Insurance Agent(Tied): 2%
Independent Financial Advisor: 3%
Brokers: 20%
Internet: 10%
7/30/2019 Insurance Trade With China_Updated
38/44
Packaging:
Free health coupon Discount coupon
Online chat with doctor, dietician and
Nutritionist e-consultation Specialist e-consultation with one
follow up session
EMI facility 24*7 Support
7/30/2019 Insurance Trade With China_Updated
39/44
People
7/30/2019 Insurance Trade With China_Updated
40/44
People (contd.)
Government only allows establishment of joint-ventureinsurance firms in China Choosing the right partner is of paramount importance. Following aspects need to be considered :
Market Focus
Target Market Business Stability
Financial Security Soundness and Structure
Does their process and practice fit with yours
Technical Expertise
What Knowledge do they have of you? What is their Partnership mentality?
Legal validation
7/30/2019 Insurance Trade With China_Updated
41/44
Policies
The Sales and Distribution policies willcenter around the following objective
Increase agent productivity
Improve recruitment of new agents andretention of existing agents
Improve customer retention and customerprofitability
Enable cross-selling and up-selling of products Explore new products and alternate channels
for sales growth
7/30/2019 Insurance Trade With China_Updated
42/44
Policies (contd.)
After Sales ServiceAfter sales service plays an important role
in customer satisfaction and customer
retention. It generates loyal customers Sales Professionals need to stay in touch
with the customers even after the policyhas been sold.
Give them the necessary supportwhenever they need , wherever theyneed.
7/30/2019 Insurance Trade With China_Updated
43/44
Policies (contd.)
Opening up multiple communicationchannels for customer issue redressal
It would be wise to adopt CRM
7/30/2019 Insurance Trade With China_Updated
44/44
THANK YOU