China Life Insurance Company Limited, also known as China Life, has launched microinsurance products in nine provinces and plans to expand further in the future. The product offerings include four personal insurance products, three group insurance products and two micro-loan products.

Information regarding the specific coverages and premium prices of the offerings was currently unavailable on English language section of the company website. According to a previous MicroCapital story, in 2007, China Life offered a term life insurance product with an annual premium of USD 14 and a payout of USD 140 in the case of a fatal accident. China Economic Net also stated that this product was “much more affordable for farmers and low-income urbanites, if compared with regular [insurance] products.” The MicroCapital story also mentions the recent introduction of insurance products dealing with planting, livestock breeding, farmers’ houses, farm machinery, household property, and micro medical insurance.

These new products come after the Zurich Financial Services Group (Zurich) announced plans to undertake a research project to study microinsurance in China. To learn more about microinsurance in China and the new Zurich study, please read this previous MicroCapital story.

China Life, founded in 2003, is one of the two major insurance companies in China along with PICC Property and Casualty Company Ltd. According to their investor relations website, China Life had total assets of CNY 933b (USD 144b), a debt to equity ratio of 353 percent and a return on equity of 19 percent in the company’s 2007 annual report. China Life is publicly traded on the New York Stock Exchange and Hong Kong Stock Exchange.

By Greg Casey, Research Assistant

Additional Resources:

China Life: Investor Relations

China Life: 2007 Annual Report (available here)

Microfinance Gateway: “Microinsurance Pilot Launched in China”

TradingMarkets.com: “China Life Unveils Micro-insurance Pilot Program”

MicroCapital Story, May 6, 2008: “Microfinance Division of Zurich Financial Services Group Launches Microinsurance Research Project in China”

China Economic Net: “China promotes micro-insurance to cover rural areas”

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