The first life insurance legal entity in Guangxi has been established for four years, and the position of chairman has changed again. On December 15, a Beijing Business Daily reporter learned that Guofu Life Insurance Co., Ltd. (hereinafter referred to as "Guofu Life") recently issued an announcement showing that Tang Xianli submitted a written resignation to the company's board of directors on December 2, 2022, resigning from the position of director and chairman of the second board of directors, and Wang Xiaojun performed the powers of chairman on behalf of the board of directors.
A few years before a life insurance company was established, it was usually the peak period of losses, and Guofu Life Insurance failed to get rid of this "law". Since its establishment in 2018, the company has not yet achieved profitability, and the growth rate of insurance business revenue has slowed down. At the same time, the test questions facing Guofu Life Insurance are also how to balance the premium ratio of guaranteed products and financial products. How far is Guofu Life Insurance still have to go to make a profit? How can Guofu Life Insurance, which is positioned in the regional market, further enrich the supply of characteristic and differentiated insurance products?
has been in office for nearly three years. Tang Xianli resigned as chairman
Recently, Guofu Life Insurance issued an announcement showing that Tang Xianli submitted a written resignation to the company's board of directors on December 2, 2022, resigning from the position of director and chairman of the company's second board of directors. After being elected by the company's directors, Wang Xiaojun, director of the second board of directors of the company, will temporarily perform the powers of the chairman.
Since its establishment, Guofu Life Insurance has undergone two changes in its position as chairman. Cui Weiwei has served as the chairman of the company since September 2018, and has stopped holding this position after just one year. Tang Xianli, who currently chooses to resign, is the second chairman since the company was founded. Tang Xianli has served as the chairman of the company for nearly three years since January 2020.
According to the third quarter report of this year released by Guofu Life Insurance, Wang Xiaojun, who performs the power of chairman, is currently the deputy general manager of the strategic development department of Guangxi Investment Group Co., Ltd. (hereinafter referred to as " Guangxi Investment Group "). It is understood that Guofu Life Insurance was jointly funded by 8 well-known companies including Guangxi Investment Group and Guangzhou Vipshop Information Technology Co., Ltd. . Guangxi Investment Group is the largest shareholder of Guofu Life Insurance, and the proportion of holding is currently 25.53%.
Regarding this personnel change, Guofu Life Insurance responded to a reporter from Beijing Business Daily that Tang Xianli has reached the retirement age and has handled the retirement procedures normally. The company's new chairman will be submitted to the board of directors and shareholders' meeting for election in accordance with the "Company Articles of Association", and will be formally appointed after reporting to the regulatory authorities for approval of their qualifications. Before the new chairman was officially appointed, all directors unanimously elected director Wang Xiaojun to act as chairman.
Since its establishment, Guofu Life Insurance has adjusted its chairman's candidate twice. Regarding how to deal with the development uncertainty and instability of corporate governance brought about by the adjustment of the core management, Guofu Life Insurance told a reporter from Beijing Business Daily that at present, Guofu Life Insurance's operation and management are normal, the company has a good institutional management foundation, and a complete corporate governance replacement mechanism. The adjustment of the chairman's candidate will not have an adverse impact on the company's business development.
has been losing money since its establishment. It is expected that 2024 will be profitable
Looking at the international market, the operating profit cycle of life insurance companies will generally last for 7 to 10 years. According to the development laws of my country's life insurance industry, the industry has always had the "law" of "seven equal and eight profits", that is, the seventh year after opening and the eighth year enters the profit cycle. This is because life insurance companies have made great investments in establishing them, and a new insurance company may have to go through 7 or 8 years of "treatment" to achieve profits. Guofu Life Insurance, which has been established for more than four years, seems to be shackled by this "law".
Guofu Life Insurance has not made any profit since its establishment in 2018. From 2018 to 2021, the company's total net loss reached 387 million yuan, and its net loss in 2018 and 2021 exceeded 100 million yuan. Guofu Life Insurance's losses this year have not improved as of now. In the first three quarters of this year, Guofu Life Insurance achieved a net loss of 212 million yuan.
Regarding when the company is expected to enter a stable profit period, Guofu Life Insurance told a reporter from Beijing Business Daily that according to the company's five-year development plan, it is expected to achieve profitability in 2024 and enter a profit cycle. The current company's loss is within the planning scope, which is a normal phenomenon.
For Guofu Life Insurance, although the profit expectations are gradually clear, it cannot be ignored that the industry Matthew effect has intensified, and the living space of small and medium-sized insurance companies has been further compressed, especially for new generation life insurance companies like Guofu Life Insurance, they face multiple challenges in the overall environment.
Li Wenzhong, deputy director of the Department of Insurance of Capital University of Economics and Trade, said that the three-year COVID-19 epidemic and the tense international situation this year have had a major impact on the development of the life insurance industry from the asset and liabilities side. Moreover, the insurance industry is an industry with obvious scale effect. Therefore, the Matthew effect in the industry is more obvious, and small and medium-sized life insurance companies are facing greater challenges in market demand, sales channels and investment. For new generation life insurance companies, the challenges in market demand and sales channels are even more severe.
However, with the support of shareholders, Guofu Life Insurance can "show its skills" and has considerable room for development. Guangxi Investment Group, the largest shareholder, has entered the Fortune 500 in recent years. Its companies cover many fields such as energy, aluminum, new materials, pharmaceutical health, digital health, securities, , and banking.
In Li Wenzhong's view, to a certain extent, Guofu Life Insurance can use the use of shareholder resources to exert synergy effects, explore high-quality markets, and build its own core competitiveness. First, from the perspective of market demand, Guofu Life Insurance can provide corresponding insurance products for the personal risk protection needs of enterprises and employees of Guangtou Group, while achieving its own development; second, from the perspective of business channels, Guofu Life Insurance can use Guangtou's banks to expand its bank insurance channels.
However, Li Wenzhong also said that to what extent this synergy effect can be exerted, how much help it will be to the development of insurance companies is still subject to many internal and external conditions, and it is definitely playing a role now, and it is worth thinking about how much space it can be explored.
Protection products are "scientific" and differentiated into a breakthrough path. Under the background of supervision that the insurance industry should return to its original nature, highlight its main business, be professional, and actively play a long-term and stable risk management and protection functions, how life insurance companies balance the premium proportion of protection products and financial products has become a test question.
According to the information of the products on sale in Guofu Life Insurance, it includes life insurance, medical insurance, annuity insurance, critical illness insurance, , accident insurance and other products. However, Guofu Life Insurance's premium income depends more on the sales of financial products. Judging from the insurance product information of Guofu Life Insurance's top five insurance premium income in 2021, there are 3 financial insurance products, including two dividend type dual-wide insurance and one annuity insurance . The premium income of these three financial insurances accounts for 86.47% of the top 5 premium income products.
In addition, according to the official website of Guofu Life Insurance, Guofu Life Insurance stated that the company has developed diversified business channels such as personal marketing, banking and insurance, health insurance , the Internet and intermediary. It is worth noting that the top three insurance product sales channels in 2021 are all bank insurance channels. In this regard, Li Wenzhong said that this should be viewed from two aspects. "The overall period of annuity insurance business in the bank-insurance channel is short, and the pressure on the use of insurance funds is generally greater, which is not conducive to the long-term and stable development of the company's business. However, since the commission rules of the bank-insurance channel are different from individual insurance, the initial cost pressure of newly established life insurance companies has been significantly reduced, which is conducive to the company's profitability as soon as possible."
For the phased "strategic" process of a life insurance company's development, in the opinion of industry insiders, life insurance companies may "start" the amount and premium income for their health insurance business, while financial insurance will "start" faster. However, if the sales and investment capabilities cannot keep up with each other and blindly increasing financial insurance, the risk is relatively high, especially if the investment is in losses or inadequate.
On the contrary, although health insurance may be slower and premium income, it is relatively stable. In recent years, the country has vigorously encouraged the development of commercial health insurance, and a number of favorable policies have been released intensively. Top-level designs have frequently called for consumers to explore the diversity of and protection needs. Therefore, commercial health insurance has ushered in a rare development opportunity.
In addition, from the market level, the public's demand for health protection is also stronger.In this regard, economist Song Qinghui said that in the future, we should strengthen the focus on products that focus on security-oriented products to achieve balanced development. Li Wenzhong also said that if life insurance companies want to develop protection insurance products, they must first develop and design life insurance products with longer insurance periods and mainly risk protection with longer insurance periods; secondly, they must vigorously develop personal insurance marketing channels.
Regarding how to give full play to its own characteristics and advantages in the development of insurance business, Guofu Life Insurance told a reporter from Beijing Business Daily that the company continues to enrich the supply of characteristic and differentiated insurance products, and has developed more than 90 products in total, including Guangxi specialty products such as "Bagui Wuyou", "Gui Qibao", "Bagui Huimin Insurance", and platform customized products such as "Dinghaizhu" and "Jiahebao".
In Song Qinghui's view, Guofu Life Insurance should continue to focus on deepening its efforts in the regional market, while continuing to improve its business quality, and further enriching the supply of characteristic and differentiated insurance products, so that it is expected to embark on a path that is in line with its own development.
Beijing Business Daily reporter Chen Tingting Hu Yongxin
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