China Post Life Insurance Company Limited (China Post Life), a Beijing-based insurance provider, has received approval from the China Insurance Regulatory Commission (CIRC) to start a pilot program for rural life microinsurance. China Post Life will be required to work with local insurance regulators to determine which rural districts are “suitable” to run the trial program. Under the pilot program, China Post Life is allowed to provide three trial lines, including term life insurance, rural migrant workers’ accident injury insurance and micro-credit accident injury insurance.
China Post Life intends to use China Post’s courier and logistics services to reach lower-income groups through the network of 57,000 post offices located throughout China.
China Post Life is the sixth company to have been approved to pilot microinsurance programs after China Pacific Life Insurance, Taikang Life Insurance, China Life Insurance, New China Life Insurance and Ping An Annuity. Data compiled by CIRC show that microinsurance pilots have been initiated in 19 provinces so far. Premium revenue from microinsurance reached CNY 230 million (USD 34 million) in 2009 according to CIRC.
By: Christine Chang, Research Associate
About China Post Life:
China Post Life is a national life insurance company formed in August 2009 by China Post Group with registered capital of CNY 500 million (USD 73 million). The organization has branches in Sichuan, Jiangxi and Shaanxi provinces. At the end of 2009, China Post Life had total cumulative original premium income of more than CNY 5.1 million (USD 750,000).
Additional Resources:
InsuranceNewsNet.com: China Post Life Launches Rural Individual Life Microinsurance Pilot Program, March 16, 2010: http://insurancenewsnet.com/article.aspx?id=171955
TradingMarkets.com: China Post Life Agreed to Pilot Small-amount Insurance, March 16, 2010: http://www.tradingmarkets.com/news/stock-alert/lfc_china-post-life-agreed-to-pilot-small-amount-insurance-848540.html
MicroCapital Universe: China Post Life: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=China+Post+Life
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