Lai Chao-chao capital, was taken away by the mud, do not go with the coconut coast.
Over the past two years, investment-type insurance to cover the noise almost completely lost the protection of sound products, although this area was once the life insurance industry's main trade with the fundamental and long-term value of the pay-off.
Of course, this area has never been put out smoke, in fact, for a number of earlier access to markets, concerned about the risk of channels of life insurance business, the long-term protection-type products have always been against fluctuations in the market to settle down in the country.
In November 2008, the first to enter the field of risk even for a joint venture life insurance company Prudential Life Insurance announced the launch of its additional risk even for the "peace of mind upon" life-long medical insurance plan (hereinafter referred to as the "peace of mind upon").
Cut its, it is now in commercial insurance that the weakest link.
Retirement health care gap
Purely on the insurance, health care, education and pension was doing my part of the three major issue as well as previous commercial insurance and social security coverage and sought to address the objectives of the host.
However, a basic fact is that China's social security system set up to now, its always pursued a basic idea is: "wide coverage, a low level" and this is due to set its goal of replacement rate of less than 50% .
A related problem is operational, in accordance with the existing social security policy, the cap set up a base fee, or more than the maximum base pay is not part of the standard payment of social security, the actual effect is that the higher income groups After the retirement of all aspects of security, such as pensions, health care relative to the level prior to retirement income and a higher drop in terms of security.
In other words, the basic fact that this is doomed, simply can not rely on social security in old age is full of problems, such as health care or health-related expenditures.
To make matters worse another fact is that public information in the past 8 years (as of 2005), the Chinese out-patient medical costs increased by 1.3 times the cost of hospitalization increased by 1.5 times the average annual growth of 13% of the cost of out-patient and hospitalization fees grew 11% Far more than income growth.
Moreover, according to our statistics, with the exception of a handful of people, from the current insurance business by selling it to provide medical insurance to protect against most of the 65-year-old (retirement) prior to the termination, and in the high incidence of the disease since the basic lack of a view.
This final result looks somewhat difficult to understand: the most stable income, and not a disease of the high rate of work, social security, commercial insurance, or even purchase their own groups of all medical coverage; in retirement Sharp drop in income, health expenditures increased the stage, it does not help.
"This is actually a form of a free market, Prudential Life Insurance has become a design 'peace of mind upon' medical insurance for life to the fundamental original intention." Prudential Life Insurance said.
It has been revealed that in 4-5 months of this year, Prudential Life began in-house product design for brainstorming, to determine the basic shape of the products under the concept.
Prudential approach
However, the final focus on two aspects: First, it is sufficient to solve the security problems, that is how to cover the blank areas; second question is how the pricing.
"Product pricing for a long time to spend time because there is no readily available data." Sources said, "I do not market demand data, I do not know how big this market in the end; the second the lack of sufficient actuarial data."
After a few months, Prudential Life Insurance to hire third-party research firm in Beijing and Guangdong in two places against the definition of the objectives of its customers, four sub-groups to do the research. The feedback showed that the vast majority of the respondents were very positive answer, approved the adoption of appropriate medical care for life insurance business to further address the post-retirement medical costs less than the source.
The actuarial data to resolve the issue, Prudential Life Insurance mobilized almost all the major reinsurance companies, and the use of its foreign shareholders, Prudential's product design resources, and become this year's Prudential Asia-Pacific region is one of the two pilot products.
In the end, "peace of mind upon the" real time-to-market, away from its initial product concept for the first time in more than half a year.
In fact, in addition to address the coverage "for life", "upon peace of mind" is another focus for the elderly during the main source for medical expenses arising from the corresponding coverage of the design.
In the end, "upon peace of mind" for the retirement security of the disease expanded to more than 40 species, including the addition to the 28 major diseases, even in older people, including the high incidence of coronary heart disease, diabetes and other diseases, large medical expenses.
The reason to be particularly diabetes, coronary heart disease and some common needs, such as large medical expenses out of chronic disease as a disease of major general added that one of the most important reason is that many of these diseases is often the root cause of severe illness, harm The slightest degree as cancer, heart attack, such as sudden vicious disease; and even their patients to the pain caused by a long period of more, and more heavy burden on the family.
In addition, prior to the general emphasis on disease risk, but around one of its problem is that as long as the insured had covered the major diseases in claims after a "non-security body."
In other words, if the terms of its inherited, if the occurrence of pre-retirement coverage in the major diseases and claims will lead to "lifelong" health care has become a blank check.
"Upon peace of mind" of this improvement is due to the design of retirement before the disease re-exemption clause, if the customer had in the pre-retirement re-disabled, in accordance with the provisions of the insurance contract was equivalent to 30% of the total insured amount of the claim, The policy still remain in force until the retirement age and can be exempted from the premium.
The effect is that the customers were young, you can rely mainly on their ability to bear the cost of treatment; but since then the retirement age to receive the exemption of insurance, retirement will not have any impact on health care.
Additional cast even Raiders
However, "upon peace of mind" about the security level design is not limited to this.
According to our statistics, previous similar products used mostly flat Quasi-risk premiums, additional dividends, and in the "peace of mind upon" the choice is almost never previously changes in the risk premium as well as the additional risk of the operation even vote.
Another product of this feature is that the insured amount should be independent and fixed, but the insurance risk premium is increasing year by year. If customers each year to pay the total premium is fixed, it means access to additional pre-cast account of the risk even more money, the more the less in the future.
At first glance, such an approach as opposed to the current stabilization of the risk premium approach seems to be "superfluous." In practice, however, this effect is designed to allow customers in the young, more funds can be invested into the accounts, investment accounts also hope to maximize the value of freedom.
Changes in the risk premium or fixed, just look at the operational level, does not seem to be all right. But if early can pay less risk premium, the remaining funds will be used for a reasonable investment, if the value-added investment, the effect is to increase the efficiency in the use of funds, and can be part of the value-added to make up part of the risk premium. On the other hand, if used in the industry prior to the passage of the stabilization of premium design, its subsequent Another problem is that the pricing of the product is no way to break through 2.5 percent target rate.
And, despite the current insurance market has not even vote as early as yesterday, no scenery, but Prudential Life Insurance said that as a long-term funding, even for risk relative to other insurance financial management more promising way to obtain more room for growth, and in the ordinary way of dividend Under the account may have accumulated more than enough.
In accordance with the well-known investment principle, even if the hunters out of the question, but at least the current market is at a relatively low, "sighted as a long-term financial management are concerned, there is not a continuation of a rational investment opportunity." These sources said.
Its support of a fact which is: Prudential Life Insurance in their launch by the end of 2001, "Hui election logistics," even for the growth of Pioneer Investment Account (passive-aggressive), not even in a bear market on the lowest point of the market, and A stock has gone through 6,000 points from the point of diving -1800, the end of October 15, 2008's net worth is still expected to 19.59526, an increase of over 95%. In other words, its less than 7 years, the average annual income is still more than 10%.
In fact, according to our statistics, in addition to Fidelity, almost all set up for more than three or four years ahead of the vote in even-account, the account so far of the net growth of more than 50%.
Prudential Life Insurance said, and even the cast does not guarantee the conflict. As the "peace of mind upon" this kind of product design, the premise is to assure the long-term investment account, for example, the product of the payment period to 15 years. This is because "only long enough period in order to smooth out short-term capital market volatility."
Account addition and subtraction
From the "peace of mind upon" the relevant data, linked to its growth, including Pioneer, as well as the optimization of all-cash debt and increased profits, even for three investment accounts, rather than have all of the seven accounts.
Such an arrangement with the bull market when insurance companies compete for even the introduction of risk investment account in order to win the number of customers favored the opposite is true.
Prudential Life Insurance said, the three investment accounts are the characteristics of a simple account, such as growth is the pioneer of passive-aggressive, more than 70% of its positions are stocks or stock funds, debt and preferred full account of the funds provided for 100% Are invested in bonds, the proceeds of their characteristics is very clear, there will not be the style of "drift."
"For customers doing their own asset allocation may be more favorable."
As for its increased profits in cash accounts, accounts themselves do not have the value of the investment. As it is a "parking lot" in the market to wait and see when this temporary funding.
Through the three accounts with the ratio can basically do any combination of the effects of asset allocation.
"Vote does not necessarily mean that even high-risk." Notes on the account type, it is to invest in bonds, investment risks and bond funds is similar. The reason why the public will be labeled-that "even for high risk products", in the final analysis, is due to the bull market in sales of large-scale, enterprise-account concept will be more easily accepted by investors.
According to our statistics, including Prudential Life Insurance, most of the products have not even vote in the bond investment accounts, in which the entire debt Fidelity preferred investment accounts this year's investment income to 7.66 percent, and in the last year in return 9% (see Table 1).
And performance-related, but also related to the size of the account, as well as follow-up sources of funding. "In general, the larger the account, the investment performance of its naturally more stable, stronger ability to resist risks." Investment in a life insurance company said.
"All along, even the premium income for Prudential of the total insurance premium income accounted for three percent." Aspects of Prudential Life Insurance said. And, as a result of which contain a substantial proportion of a channel for insurance products, even for the renewal of insurance premium income is considerable.
Prudential Life Insurance on October 24 has just been published by the investment-linked insurance account information bulletin in the first half of 2008 show that as early as in the last vote is low even in the field of view to enter the joint venture life insurance company, as of the first half of this year, the earlier Pioneer set up the growth of investment accounts for almost the size of the 1.5 billion; debt and preferred full-scale over 580,000,000 yuan.
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