Ping An’s Chief Insurance Business Officer Lu Min: Reform of Life Insurance Business Will Lay Solid Foundation for Next Decade
HONG KONG and SHANGHAI, Sept. 14, 2020 /PRNewswire/ -- Ping An Insurance (Group) Company of China, Ltd. (hereafter “Ping An” or the “Group”, HKEX: 2318; SSE: 601318) announced that its life insurance arm, Ping An Life, is driving business in four key areas: its growth model, marketing, product strategy and channel integration.
During the 2020 interim results conference, Lu Min, Chief Insurance Business Officer of Ping An, said, “Despite the unprecedented challenges and the industry’s inertia to sweeping changes, we are confident that this reform will pave the way for Ping An Life’s further development in the next decade.”
Ping An Life’s Reform Will Set It Apart
The previous round of business reform for Ping An Life began in 2004. Based on market conditions, Ping An switched from investment-linked insurance products to protection products and withdrew from low-value bancassurance channels. The number of insurance agents shrank to 200,000 from 320,000. These changes laid a strong foundation for the next decade.
The current transformation program was proposed in 2018 and officially launched in the second half of 2019. Due to the changes in the market, customer demand and technology over the last decade, the traditional agent model is not sustainable, Mr. Lu said.
The current reform involves four key areas:
Ping An Life’s New “Basic Law” Emphasizes Quality Before Scale
A key step in Ping An Life’s transformation has been the update of its Basic Management Measures for Life Insurance Business Personnel, or Basic Law. Mr. Lu said the amendments include organization reclassification, agent ranking by experience, and increased long-term investment in agents.
Mr. Lu said, “Ping An Life’s Basic Law supports the objective of Ping An Life’s business reform, which is to grow stronger before growing bigger, focusing on quality before scale. In the revision of Ping An’s Basic Law, we have shifted from rapid growth of our team of agents as the key business growth driver, to pursuing both agent quantity and quality. We will continue to emphasize recruitment, but will expand our force with quality agents, instead of pursuing sheer numbers.”
Ping An Life has completed the top-level design of most of the transformation projects, and launched pilot programs at branches for nearly half of the projects. Most of the reform projects will be implemented this year, with the results reflected in the business at the start of 2021.
Ping An recently announced its 2020 interim results: operating profit attributable to shareholders of the parent company in the first half of 2020 increased by 1.2% year on year to RMB74,310 million. Operating profit after tax of the life and health insurance business rose by 6.4% year on year to RMB51,535 million.
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About Ping An Group
Ping An Insurance (Group) Company of China, Ltd. (“Ping An”) is a world-leading technology-powered retail financial services group. With over 210 million retail customers and 560 million Internet users, Ping An is one of the largest financial services companies in the world.
Ping An has two over-arching strategies, “pan financial assets” and “pan health care”, which focus on the provision of financial and healthcare services through our integrated financial services platform and our five ecosystems of financial services, health care, auto services, real estate services and smart city services. Our “finance + technology” and “finance + ecosystem” strategies aim to provide customers and internet users with innovative and simple products and services using technology. As China’s first joint stock insurance company, Ping An is committed to upholding the highest standards of corporate reporting and corporate governance. The Group is listed on the stock exchanges in Hong Kong and Shanghai.
In 2020, Ping An ranked 7th in the Forbes Global 2000 list and ranked 21st in the Fortune Global 500 list. Ping An also ranked 38th in the 2020 WPP Kantar Millward Brown BrandZTM Top 100 Most Valuable Global Brands list. For more information, please visit www.pingan.cn.
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SOURCE Ping An Insurance (Group) Company of China, Ltd.