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Insurance

Insurance

Value rises with gain

in insurance coverage

 

COVID payouts, investment loses hurt results

The insurance category increased 12 percent in value, following a modest 4 percent rise a year

ago, another indication of the potential for the insurance category in China, where the population is aging, and insurance penetration is low relative to Western markets.

Payouts because of COVID-19 and stock market investment loses hurt results for leading brands in early 2020. Only two of the five insurance brands in the BrandZ™ China Insurance ranking rose in value: Ping An, the diverse financial services giant, and state-owned China Life.

Demand related to COVID-19 also increased business, driving a spike in users of Ping An’s Good Doctor health care platform, for example. At the same time, fintech and peer- to-peer entities, like Ant Financial’s Xiang Hu Bao, added competitive pressure for health insurance.

In addition, liberalized regulations made the insurance business in China more appealing for overseas companies because it allowed non- Chinese joint-venture partners to hold a majority ownership interest.

While Ping An continued to focus on its five core financial ecosystem businesses— financial services, healthcare, real estate services, auto services, and smart city services—it also invested heavily in technology. In its financial businesses, life and health insurances continued steady growth and benefited from cross selling retail customers.

Among its many technology ventures, Ping An continued to develop its fintech business, which includes OneConnect, a developer of technology platforms, for which it launched an IPO.