Insurance

CITIC Prudential is a 50:50 joint venture between CITIC Limited and Prudential plc, offering life, health and accident insurance. The company has 152 branches in 59 cities across China.

Year in review

In 2014, the China Insurance Regulatory Commission reduced restrictions on the use of insurance capital, which expanded the scope of investment opportunities for insurance companies. The changes led to the introduction of new insurance products, with the effect of increasing industry competition.

CITIC Prudential bolstered its marketing efforts across sales channels in addition to developing and upgrading its products. As a result, life, health and accident insurance all experienced strong growth. Total premium income achieved a 23% year-on-year increase to RMB5 billion.

Products and sales channels

CITIC Prudential has developed a series of new and upgraded products to reflect the demands of a growing market with changing needs. These include new critical illness insurance products for children, a lifelong insurance product aimed at high-end customers and an upgraded accident insurance product for drivers. These were well received in the market.

Individual insurance agents and bancassurance are the major sales channels of CITIC Prudential. In 2014, premium income generated via individual insurance agents represented 66% of total premium income. In terms of bancassurance, the company expanded this channel by entering into a cooperation agreement with other banks, including Agricultural Bank of China.

CITIC Prudential is also making greater use of convenient, lower-cost channels, including telephone sales, group insurance and the internet. CITIC Prudential now has three telephone sales centres in Shenzhen, Beijing and Qingdao, as well as channels through CITIC Limited’s subsidiaries and clients for group insurance. New business secured during the year included coverage for large insured projects by CITIC Pacific Special Steel and Wuchang Shipbuilding Industry Group. Business generated from internet marketing also increased, mainly driven by marketing campaigns during the World Cup and the enhancement of services on mobile internet platforms.

In terms of staffing, CITIC Prudential is simplifying its management hierarchy to deliver greater efficiencies and upskilling its insurance sales agents with the aim of providing a better customer experience. In bancassurance, CITIC Prudential is designing insurance products to meet the different requirements of counter, internet and corporate customers, all with the objective of enhancing its service and keeping its competitive advantage.