"Keeping Watch Over China's Business Risk and Insurance"
Vol. 2 , No. 1 - June 06, 2001
TOPICS THIS ISSUE:
- Medical insurance reform to cover 80m people this year
- China's insurance industry realizes RMB 44.472b in premiums in the first quarter
- China's insurance industry faces reshuffle
- China's social and security Law is going to be enacted
- Gerling expects business license for Chinese market
- Construction Bank joins forces with Pacific
- Six trends of the development of China's pension insurance system
- China will strengthen the regulating of insurance market
- Ping'An Insurance launches new b-to-b site
- Insurance-oriented fund to be launched in July
- First Seminar in a Series
- Important warning & public announcement
EyeWatchina is intended to be used for news purposes only. It should not be taken as comprehensive advice, and its producers will not be held responsible for any such reliance on its contents.
EyeWatchina, Copyright 2001 WaterStreet Asia in cooperation with Lehman, Lee & Xu (Formerly Known as L&A), All Rights Reserved.
MEDICAL INSURANCE REFORM TO COVER 80M PEOPLE THIS YEAR
According to the Labor and Social Security Ministry, China aims to cover 90% of its cities and 80m people with the medical insurance system reform.
Guangming Daily, [2001.05.07]
CHINA'S INSURANCE INDUSTRY REALIZES RMB 44.472B IN PREMIUMS IN THE FIRST QUARTER
The China Insurance Regulatory Commission says the domestic insurance industry made RMB 44.472b in premiums income in the first quarter of this year, a rise of 34.51%. Ma Yongwei, chairman of the China Insurance Regulatory Commission, attributes the growth to the improving overall economic situation and CIRC's implementation of the spirit of the central government.
People's Daily (domestic), [2001.04.27]
CHINA'S INSURANCE INDUSTRY FACES RESHUFFLE
In an interview, Dr. Liu Tingjun from the Assets Management Center of Taikang Life, predicts a reshuffle of China's insurance industry in the near future. He believes that the domestic insurance market suffers from insufficient competition and more investment channels should be opened to insurers.
GD-HK Information Daily , [2001.04.30]
CHINA'S SOCIAL AND SECURITY LAW IS GOING TO BE ENACTED
According to the Labor and Social Security Ministry, China will enact its social security law early in the Tenth 5-Year Plan. One draft of the law hopefully will be sent to the State Council for approval before June this year.
China Youth Daily, [2001. 04.27]
GERLING EXPECTS BUSINESS LICENSE FOR CHINESE MARKET
Chi Yugen, CEO of Gerling, says his company expects to obtain a license to conduct insurance business in China within 6 to 12 months.
China Market Economic News , [2001.04.23]
CONSTRUCTION BANK JOINS FORCES WITH PACIFIC
April 23, China Construction Bank and Pacific sign an agreement to establish a long-term strategic partnership. Attending the signing ceremony are Wang Guoliang, president of Pacific, Huo Lianhong, general manager of Pacific, Wang Xuebing, president of Construction Bank, Chen Zuofu, assistant to the president of Construction Bank, and Zhang Juncai, general manager of Pacific Property.
Financial Times , [2001.04.24]
SIX TRENDS OF THE DEVELOPMENT OF CHINA'S PENSION INSURANCE SYSTEM
The current pension insurance system of China still awaits improvement. The 21st century will see six new developments in China's pension insurance system. First, the state will open more channels for collecting pension insurance premiums. Second, a better management mode will be adopted for pension insurance funds. Third, pension insurance payments will be conducted by banks or post offices instead of by enterprises. Fourth, laws and regulations will be updated for this area. Fifth, a sound supervisory mechanism will be set up for pension insurance fund management. And lastly, a risk pre-warning system will be adopted to control risks.
Financial Morning Post , [2001.04.23]
CHINA WILL STRENGTHEN THE REGULATING OF INSURANCE MARKET
Ma Yongwei, Chairman of China Insurance Regulatory Commission, told the reporters today, "CIRC will strengthen the regulating of China insurance market. Illegal operations of the insurance agencies especially of foreign insurers will be punished".
According to Mr. Ma, CIRC will mainly examine the property insurance, reinsurance and other business operation of the foreign insurance enterprises and foreign rep offices. In the meantime, the legal status of the foreign insurers which including the registration record at the Administrations of Industry and Commerce as well as the Bank account information, income and expenses situation of these enterprises also be the focus of this examination.
Investigation revealed, since its establishment, CIRC has punished 15 Foreign rep offices for violating regulations in conducting their business.
Mr. Ma stated "facing the challenge of further opening up its insurance market, China must first establish a fair and standard market order in order to improve the overall competition ability and quality of the insurance industry".
People's Daily, [2001.05.08]
PING'AN INSURANCE LAUNCHES NEW B-TO-B SITE
China Ping'An Insurance Co. launched the country's first multifunctional online cargo-insurance platform on May 15.
The Ping'An cargo-insurance network, http://cargo.pa18.com , is a business-to-business Web site targeting online freight-insurance marketing and sales. Customers can use the Web site in many ways, from shopping for cargo insurance and verifying policies to filling out and submitting application forms online, the May 17 Jinrong Shibao (Financial News) reported.
The Web site offers online transactions with highly simplified and standardized procedures. Traditional transactions that once required several hours to finish now take roughly five minutes to complete, the article noted.
The Ping'An cargo-insurance Web site has started its pilot transactions in the economically developed Zhejiang province with established operations in waterway freight-transport insurance. During the trial period, the Bank of China's Shangyu Branch, the local insurance agent of Ping'An Insurance, issued the first freight-insurance certificate.
Industry insiders said that the launch of the Web site not only provides customers with fast, transparent and standardized access to online insurance shopping, but also shields insurance companies from risks and prevents irregular operations, the article said. The 24-hour services offered by the Web site enable customers to buy insurance and submit claims at any time of the day.
Chinaonline.com , [24 May 2001]
INSURANCE-ORIENTED FUND TO BE LAUNCHED IN JULY
The framework for the first securities investment fund targeting insurance companies has taken shape with an expected launch in July.
With a total investment of approximately 6 billion yuan (US$724.91 million), it will be an open-end fund that will collect capital mainly from life insurance companies.
China's largest insurance company, the China Life Insurance Co., has contributed the largest share to the fund with 4 billion yuan (US$483.27 million). The remaining 2 billion yuan (US$241.64 million) will come from contributions made by one or two other insurance companies.
The fund management company has currently reached an agreement with the insurance companies and the related plan has been submitted to the competent regulatory body.
Zhongguo Zhengquan Bao (China Securities), [18 May 2001]
FIRST SEMINAR IN A SERIES
The first of a series of seminars was held in April to inform expatriates of an investment opportunity offered by Ord Minnett, a well respected Australian investment bank now part of JP Morgan. While this opportunity was uniquely suited to Australians, Formon & Associates sees this type of forum catering for the whole community providing information vital to individuals living and working in China.
IMPORTANT WARNING & PUBLIC ANNOUNCEMENT
THREE DEATHS CAUSED BY CARBON-MONOXIDE
One person in Tianjin, another in Inner Mongolia and a third in Taiwan died as a result of carbon-monoxide poisoning.
Caution is advised with unvented, gas-fired water heaters mounted on walls inside bathrooms, kitchens or pantries. These only operate on-demand when the hot-water tap is in use. These heaters are associated with rapid build-up of odorless but deadly carbon-monoxide gas.
Unventilated indoor installation of these heaters is inappropriate--heaters should be installed on outdoor walls or open balconies.
To be safe, always leave doors and windows open in rooms where such heaters are installed indoors.
RECEIVING US SOCIAL SECURITY BENEFITS OVERSEAS
For U.S. citizens living abroad, getting U.S. social security benefits may not be a simple matter. The same goes for supplemental medical insurance. The U.S. bans or restricts payments to a small number of countries, e.g., Cuba, North Korea. Even for non-restricted countries, there may be logistical problems to receive and process U.S. Treasury checks if the postal and banking system is not up to international standards.
For more information, contact Waterstreet_Asia@yahoo.com and we will provide you with free tips on obtaining social security payments while you are overseas.
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Healthcare and Safety Risk Consultants
Water Street Asia Consultants specialize in providing risk management, employee benefit solutions and service administration to employers and individuals alike. Our exclusive focus is to solve the diverse problems of expatriate business owners, "half or local expatriates" and third country nationals living and working in Asia.
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Formon & Associates
Private Banking and Trust Services
In response to a perceived need for quality advice on financial matters and other issues relevant to the expatriate community in Shanghai, Formon & Associates proposes to host several special interest seminars and round-table discussions.
For more information please contact either Robert Formon or Brad Tyson at Formon & Associates
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The EyeWatchina Newsletter is intended to be used for news purposes only. It should not be taken as comprehensive legal advice, and Lehman, Lee & Xu and Waterstreet will not be held responsible for any such reliance on its contents.
