Recently, Zhejiang Ant Small and Micro Financial Services Group Co., Ltd. has increased its investment and plans to increase its capital by 510 million yuan to its subsidiary Cathay Property Insurance Co., Ltd. (hereinafter referred to as "Cathay Property Insurance") based on its shareholding ratio. According to the Blue Whale Insurance, Ant Financial has currently held 3 insurance licenses, covering the fields of property insurance and life insurance. In this regard, experts analyzed that Ant Financial's insurance layout has basically taken shape, but no coordination has been formed. In addition, the three insurance institutions are all in a loss state. One by one, they also have "weaknesses".
In 2017, property insurance companies achieved a total of 1054.138 billion yuan in original insurance premium income, an increase of 13.76% year-on-year. From the perspective of insurance structure, although affected by adverse factors such as the slowdown in new car sales and the reduction in commercial vehicle insurance premium rates, the growth rate of auto insurance business remained stable, achieving original insurance premium income of 752.107 billion yuan, a year-on-year increase of 10.04%, and the business accounted for 71.35%; among which, the original insurance premium income of compulsory motor vehicle insurance was 186.901 billion yuan, a year-on-year increase of 9.97%.
In 2017, non-auto insurance types such as corporate property insurance, credit insurance , agricultural insurance and liability insurance achieved a total original insurance premium income of 302.031 billion yuan, an increase of 24.20% year-on-year, accounting for 28.65% of property insurance. Among them, agricultural insurance and liability insurance continued to maintain rapid growth, achieving original insurance premium income of 47.906 billion yuan and 45.127 billion yuan, a year-on-year increase of 14.69% and 24.54%, and the business accounted for 4.53% and 4.29% respectively.
Refer to China Report Network to release the "2018 China Agricultural Insurance Market Industry Analysis Report - Market Operation Trend and Development Prospects Forecast"
Premium Income of major insurance types in property insurance companies in 2017
Data source: China Banking and Insurance Regulatory Commission
As my country's largest property insurance, auto insurance accounted for 74% of my country's property insurance in 2016, and the proportion of auto insurance was much higher than that of developed countries such as the United States, the United Kingdom, and Japan. Against this background, the scale of auto insurance premiums in my country increased from 74.6 billion in 2004 to 752.107 billion in 2017, with a rapid growth rate.
my country's property insurance business structure
Data source: China Banking and Insurance Regulatory Commission
China's auto insurance premium income from 2004 to 2017
Data source: China Banking and Insurance Regulatory Commission
According to data from the National Bureau of Statistics, as of the end of 2016, my country's sowing area was 167 million hectares, grain output was 616 million tons, imported grain was 115 million tons, and grain self-sufficiency rate was 84.31%, which was less than 90%. There are certain grain supply risks. It is particularly important to protect the interests of farmers and improve the enthusiasm of farmers for agricultural production. The agricultural insurance market is broad. Since the pilot agricultural insurance financial subsidy in 2007, my country's agricultural insurance potential has been further released. Agricultural insurance premium income has increased from 5.34 billion yuan in 2007 to 47.91 billion yuan in 2017, with an annual compound growth rate of 24.53%, with a steady growth rate.
Agricultural insurance premium income and growth from 2007 to 2017
Data source: China Banking and Insurance Regulatory Commission
The future growth momentum of agricultural insurance comes from two aspects. First, the central government has issued policies to increase subsidies for agricultural insurance, which can effectively lower the underwriting threshold, increase farmers' disaster tolerance, and promote the development of agricultural insurance; second, intensive operation has increased the scale of land underwriting, potential risks and losses, and the fixed cost of contracted land also increases its risk aversion coefficient, which increases the tendency to purchase agricultural insurance.
