When did China's life insurance begin?

In the early days of liberation, the people's government took over bureaucratic capital insurance companies in various places, and at the same time reorganized and reformed private insurance companies, which created conditions for the birth and development of new China insurance industry. The establishment of the People's Insurance Company of China marks that the insurance industry in China has entered a new historical development period.

(A) the transformation of the insurance industry in old China.

In order to establish a new insurance industry to meet the needs of socialist construction, 1949 the people's government carried out a comprehensive cleaning, rectification and transformation of the old insurance industry in China.

1. Take over bureaucratic capital insurance enterprises. Since most of the bureaucratic capital insurance institutions were concentrated in Shanghai on the eve of liberation, the people's government took over the bureaucratic capital insurance institutions centered on Shanghai. The takeover started on May 1949 and basically ended on June 10. China product insurance company and China aviation accident liability insurance company, which specialize in ship insurance and crew accident insurance, were allowed to resume business, while other bureaucratic capital insurance institutions closed down. All the bureaucratic capital insurance institutions outside Shanghai are taken over by the local Military Management Committee. At that time, bureaucratic capital insurance institutions had exhausted their assets because of the transfer of funds and the embezzlement and misappropriation of the person in charge. Its employees were organized by the Military Management Committee to study politics. After the establishment of China People's Insurance Company, many people took up new posts in the life insurance industry.

2. The transformation of private insurance enterprises. After liberation, various localities have successively formulated management measures for private insurance enterprises, such as re-clearing assets, requiring corresponding deposits according to business types, and strengthening supervision and inspection. According to the new management regulations, Chinese and foreign private insurance companies have resumed business in various places, but most of them have weak capital and limited underwriting capacity.

Due to the disintegration of most of the original reinsurance groups, the external reinsurance relationship was interrupted. With the support of the Military Commission, 1949 established a reinsurance institution "Mincheng Reinsurance Exchange" (referred to as Minlian) in Shanghai on July 20th, which was voluntarily participated by private insurance companies, and mainly handled the reinsurance business of fire insurance. The establishment of NLD has promoted the business development of private insurance companies in China and improved the credibility of the insurance industry. With the public-private partnership of private insurance enterprises, NLD completed its historical mission at the beginning of 1952.

195 1 and 1952, public-private Taiping insurance company and Xinfeng insurance company were established one after another. These two companies were established on the basis of a number of private insurance companies, and their business scope was limited to designated regions and industries, and the commission system and broker system were abolished in their operations. 1956, after the completion of private industry and commerce, the state implemented compulsory property insurance for public-private joint ventures, and designated China People's Insurance Company as the legal entity to handle compulsory property insurance. In the same year, Taiping and Xinfeng merged and were called "Taiping Insurance Company" after the merger. They no longer engage in domestic insurance business, but specialize in foreign insurance business. The merger of the two companies has realized the public-private partnership of the entire insurance industry, marking the completion of the socialist transformation of China's insurance industry. Since then, China's domestic insurance business has been exclusively operated by China People's Insurance Company.

3. Foreign insurance companies withdraw from China insurance market. Before 1949, foreign insurance companies controlled the insurance market in China by virtue of their political privileges and strong financial strength. After the founding of New China, the people's government cancelled its privileges, strengthened supervision and required it to re-register and pay the deposit. 1950 In May, there were 6 foreign-funded insurance companies in China, including 37 in Shanghai, 8 in Guangzhou, 5 in Qingdao and 0 in Chongqing. The people's government has adopted a policy of paying equal attention to restriction and utilization. On the one hand, it was allowed to operate and continue to handle some businesses that other insurance companies could not do at that time, such as marine insurance and foreign exchange insurance for foreigners. On the other hand, in order to safeguard national interests, it has imposed necessary restrictions on its business scope and business activities, and seriously investigated and dealt with its violations of national laws and regulations and disobedience to management. With the rapid growth of state-owned insurance companies' business, foreign insurance companies have not only lost the high profits obtained by relying on government privileges, but also lost a lot of reinsurance income. After the establishment of the state-owned foreign trade system and the new customs, its direct business sources are becoming less and less. The premium income of foreign insurance companies accounted for 62% of the national premium income in 1949, dropped to 9.8% in 1950, dropped to 0.4% in 195 1 year, and was only 0./kloc in 1952. By the end of 1952, foreign-funded insurance companies in China had successively applied for bankruptcy and withdrawal from the insurance market in China.

(B) The birth of China People's Insurance Company

1949 in August, the central people's government held the first national financial and economic conference in Shanghai in order to restore and develop the national economy destroyed by years of war as soon as possible. At the meeting, the People's Bank of China suggested the establishment of "People's Insurance Company of China", and immediately organized preparations after the meeting. With the approval of the CPC Central Committee, China People's Insurance Company was formally established on1October 20th, 1949. This is the first state-owned insurance company after the founding of New China. After its establishment, China People's Insurance Company quickly set up branches all over the country, and based on the people's banks around the country, established an extensive insurance agency network.

In order to cooperate with the recovery and development of the national economy, the People's Insurance Company of China actively carries out business, focusing on compulsory insurance for the property of state-owned enterprises, supply and marketing cooperatives and state organs at or above the county level, as well as passengers on railways, ships and planes. In cities, fire insurance, transportation insurance, group and individual life insurance, automobile insurance, passenger accident insurance, parcel insurance, air transportation insurance, cash insurance, ship insurance, etc. In the village, agricultural insurance is actively tried out, mainly livestock insurance, cotton insurance and fishery insurance. In order to get rid of western countries' control over China's insurance market, People's Insurance Company of China has also devoted itself to developing its foreign business and established reinsurance relations with many friendly countries. In addition to direct business, it also accepts reinsurance business from private companies. China People's Insurance Company quickly became the national insurance industry and the leading force, thus fundamentally ending the situation that foreign insurance companies monopolized the insurance market in China.

In the early 1950s, there were many problems in the implementation of policies and specific practices in the local institutions of China People's Insurance Company, which were mainly manifested in relying on administrative orders to carry out business and confusion in internal management. Agricultural insurance has been popularized in an all-round way under the immature pilot experience, and some grassroots cadres have engaged in compulsory orders when carrying out business, which has caused adverse effects among the masses. Insurance institutions are developing too fast, and many cadres don't understand business. They only ask for the amount of insurance premium, not the quality of the insurance contract. Many county-level companies cannot make ends meet. 1953 in March, the third national insurance work conference of China People's Insurance Company corrected the above mistakes and deviations, and determined the policy of "cleaning up urban business, stopping rural business, reorganizing institutions, and making steady progress on the basis of consolidation".

By the end of 1953, agricultural insurance was basically suspended in all localities. Although most people have no opinion on suspending agricultural insurance business, some farmers are unwilling to stop and surrender their insurance, and some of them have already obtained compensation or have some understanding of the benefits of insurance. Due to the rapid development of rural economy and mutual aid and cooperation movement in most parts of Northeast China, most farmers do not agree to stop agricultural insurance. With the approval of the State Council Financial and Economic Committee, farm animal insurance has been re-implemented in Northeast China. With the acceleration of agricultural cooperation, organized farmers have a certain demand for agricultural insurance. However, with the development of agricultural cooperatives from primary cooperatives to advanced cooperatives and the unified use of livestock, the demand for insurance is not as urgent as that of primary cooperatives.

From 1953, the state adjusted the compulsory insurance business in cities and towns: (1) suspended the compulsory insurance for state organs' property and compulsory insurance for capital construction sites; (2) Continue to handle compulsory insurance for state-owned enterprises (including cooperatives); (3) Other businesses are divided into three categories: rectification, contraction and closure according to the four principles of positive effect on production, whether the masses need and are willing, whether there are conditions and whether they conform to economic accounting. Due to the promotion of the socialist transformation of capitalist industry and commerce, the voluntary insurance business in cities has obviously declined.

(2) Suspension of domestic insurance business.

1958 10, Xi The conference on finance and trade in safe countries proposed that after the People's Commune, the role of insurance work has disappeared, and domestic insurance business should be closed immediately except for foreign insurance business. In February of the same year, 65438+, the national financial conference held in Wuhan officially made a decision to "immediately stop domestic insurance business". 1959 1 month, China people's insurance company held the seventh national insurance work conference to implement the spirit of suspension of domestic insurance business and deploy clean-up work. Since 1959, the insurance business in China has been closed except Shanghai and Harbin.

The closure of domestic insurance industry appeared under the situation that urban industry and commerce completed socialist development and transformation and rural people's communalization. At that time, some people thought that in the case that urban industry and commerce are basically state-owned enterprises, the state can compensate for various disaster losses through financial adjustment, so it is not necessary to start urban insurance. In rural areas, people's communes have changed the previous situation of small-scale agricultural cooperatives and single management projects, and their financial and material resources have already possessed greater disaster resistance and compensation capabilities. Under the control of this understanding, it is considered that the historical task of insurance has been completed.

After the suspension of domestic insurance business, the state only set up an insurance department under the Foreign Investment Management Bureau of the People's Bank of China to handle the import and export insurance business in the central and Beijing areas, lead the business and contacts of domestic and foreign branches, and centrally handle the international reinsurance business and foreign activities, and use the names of "China People's Insurance Company", "China Insurance Company" and "Taiping Insurance Company" in the external liaison business.

After 1959, the insurance business in some cities in China has not been completely closed, including Shanghai, Harbin, Guangzhou and Tianjin. From 65438 to 0964, with the overall improvement of the national economy, the Insurance Department of the Foreign Business Bureau of the People's Bank of China was upgraded to the first-level unit of the bureau, and the name of the People's Insurance Company of China was still used, with the deputy governor of the People's Bank of China as the general manager.

During the ten-year turmoil from 1966 to 1976, China's domestic insurance business was completely closed. Under the influence of the "Left" trend of thought, insurance is regarded as "the market of private economy", "incompatible with China's socialist economic foundation", "it is not worth the loss to handle international reinsurance business", "it depends on imperialism" and "reinsurance is the redistribution of profits between emperors", so some people propose to "completely smash China's insurance industry", not only to stop domestic insurance business, but also to stop all foreign insurance and international reinsurance business. The first thing to bear the brunt was the suspension of ocean shipping insurance of the Ministry of Communications in June 1969, which greatly affected overseas business. Then closed the automobile third party liability insurance. Before 1968, overseas business was reinsurance by Hong Kong Min 'an Insurance Company, China Insurance Company and Taiping Insurance Company to China People's Insurance Company, and then reinsurance by China People's Insurance Company. However, after 1969, Min 'an Insurance Company acted as an agent for overseas reinsurance, while PICC Life Reinsurance, insurance business in Hong Kong, Macau, Singapore and other countries and regions was entrusted to China Insurance Hong Kong Branch for management. By 1969, the number of countries with reinsurance relations with China dropped from 32 to 17, and the number of companies with business dealings dropped from 67 to 20, only maintaining reinsurance relations with socialist countries and individual developing countries. In fact, it has stopped the reinsurance exchange with the western insurance market that has developed for many years.

1978 12 the third plenary session of the eleventh central Committee of the party established the policy of reform and opening up and decided to shift the focus of work to socialist modernization centered on economic construction. The People's Bank of China proposed to resume domestic insurance business at the national meeting of branch presidents held in February, 1979.

1in April, 979, the State Council approved the Minutes of the President's Meeting of the Branch of the People's Bank of China, and made an important decision of "gradually restoring domestic insurance business". The People's Bank of China immediately issued the Notice on Restoring Domestic Insurance Business and Strengthening the Construction of Insurance Institutions, which made specific arrangements for restoring domestic insurance business and setting up insurance institutions.

The recovery of domestic insurance business began with the design and formulation of insurance clauses, rates and document formats. 1979 launched three types of insurance in May and June, namely enterprise property insurance, cargo transportation insurance and family property insurance. From July to August, several groups of cadres were sent to Guangdong, Fujian, Zhejiang, Shanghai, Jiangsu, Jiangxi and other places to resume insurance business and set up insurance institutions. From September to June 1 1, some areas such as Shanghai, Chongqing and Jiangxi have taken the lead in starting domestic insurance business. 1979165438+1October, the National Insurance Work Conference made specific arrangements for 1980 to resume domestic insurance business. After the meeting, the recovery of domestic insurance business was quickly spread throughout the country.

After the recovery of domestic insurance business, the practice of unified financial settlement of unexpected losses of enterprises in the past has also changed accordingly. The property of enterprises owned by the whole people and collectively, including fixed assets and working capital, can be insured voluntarily. In case of loss of property insured by units owned by the whole people, the insurance company shall be responsible for compensation according to the provisions of the insurance contract, and the state finance will no longer write off and allocate funds.

By the end of 1980, except Tibet, China People's Insurance Company had resumed branches all over the country, with a total of 8 institutions at all levels, 3,423 full-time insurance cadres and an annual premium of 460 million yuan. The branches of the People's Insurance Company of China accept the dual leadership of the head office of the People's Bank of China and local branches. 1September 1983, with the approval of the State Council, China People's Insurance Company was upgraded to a bureau-level economic entity directly under the State Council. From 1984 to 1, its branches were separated from the People's Bank of China, led by the head office, and implemented systematic management.

Since 1956 Xinfeng and Taiping withdrew from the domestic insurance market, China People's Insurance Company monopolized the insurance market in China. After the resumption of domestic insurance business, China insurance market is still dominated by China People's Insurance Company. The complete monopoly of China People's Insurance Company on the market played a positive role at that time, which promoted the rapid recovery and development of the insurance industry in China in a short time. With the rapid development of the socialist market economy, the inherent disadvantages of the monopoly management system that violates the laws of the market economy are gradually exposed. Monopoly system stifles the role of the law of value in the development of insurance business, deprives the insured of the right to choose an insurer, resulting in high insurance rates and shrinking insurance market. Therefore, changing the insurance system of China People's Insurance Company became an urgent problem to be solved at that time.

1In February, 986, the People's Bank of China approved the establishment of "Xinjiang Production and Construction Corps Agriculture and Animal Husbandry Insurance Company", which specializes in planting and aquaculture insurance of Xinjiang Production and Construction Corps farms. 1992, the company changed its name to "Xinjiang Corps Insurance Company" and expanded its business scope accordingly. The establishment of the Agriculture and Animal Husbandry Insurance Company of Xinjiang Production and Construction Corps broke the situation that China People's Insurance Company monopolized the insurance market exclusively. 1987 the people's bank of China approved the establishment of the insurance department by the bank of communications and its branches. 1988 In May, Ping An Insurance Company was established in Shekou, Shenzhen. 199 1 year, the People's Bank of China required the insurance industry and the banking industry to operate and manage separately, and approved the Bank of Communications to set up China Pacific Insurance Company on the basis of its insurance department, becoming the second national comprehensive insurance company after the People's Insurance Company of China. 1September 1992, Ping An Insurance Company was renamed as "China Ping An Insurance Company", becoming the third national comprehensive insurance company.

Starting from 1988, the People's Bank of China approved the establishment of five joint-stock life insurance companies in Sichuan, Dalian, Shenyang, Changsha and Xiamen, and began to explore ways to separate life insurance and property insurance. 199 1 year later, the People's Bank of China approved the establishment of joint-stock life insurance companies in Zhuhai, Benxi, Xiangtan, Dandong, Guangzhou, Taiyuan, Tianjin, Fuzhou, Harbin, Nanjing and Kunming. The newly established life insurance company not only handles commercial insurance, but also accepts the entrustment of the local government to handle social insurance business. China People's Insurance Company holds certain shares in these life insurance companies.

1In June, 1994, the People's Bank of China approved the establishment of Tianan Insurance Company Limited in Shanghai. In June, 1995, 1, Volkswagen Insurance Co., Ltd. was approved to be established in Shanghai. 1July 1996, with the approval of the State Council, China People's Insurance Company was reorganized into China People's Insurance (Group) Company, with PICC Property Insurance Co., Ltd., PICC Life Insurance Co., Ltd. and PICC Reinsurance Co., Ltd. operating production and life insurance businesses respectively. According to the principle of separation of commercial insurance and social insurance established in the Insurance Law, the State Council decided to merge all 17 local life insurance companies into PICC Life Insurance Co., Ltd. ... In order to promote the healthy development of China's insurance industry, 1998 10/0/7, the State Council approved the cancellation of China People's Insurance (Group) Company. The original PICC Life Insurance Co., Ltd. was renamed China Life Insurance Company; The original PICC Reinsurance Co., Ltd. was renamed China Reinsurance Company; Other overseas operating institutions of China Insurance Group are managed by Hong Kong China Insurance (Group) Co., Ltd. 1996. The People's Bank of China also approved the establishment of five joint-stock insurance companies, including new china life insurance co Co., Ltd., Taikang Life Insurance Co., Ltd., Huatai Property Insurance Co., Ltd., Yongan Property Insurance Co., Ltd. and Huaan Property Insurance Co., Ltd.

After the reform and opening up, many foreign insurance companies are optimistic about the huge development potential of China insurance market and hope to enter China insurance market as soon as possible. Since 1980, foreign insurance companies have set up representative offices in China. By the end of 1999, foreign insurance institutions from 17 countries and regions had set up 196 representative offices in China. From 65438 to 0992, China began to open its insurance market to the outside world. 1In September, 1992, American International Assurance Company Limited was approved to set up a branch in Shanghai to operate life insurance business and property insurance business. AIA Shanghai Branch introduced the life insurance agent system, which had a great impact on the marketing system of China insurance market and activated the life insurance market with considerable potential. 1September, 1994, Tokyo Marine Fire Insurance Company of Japan was approved to set up a branch in Shanghai to operate property insurance business.

1999, there were 28 insurance companies in China. According to the investors, there are 4 wholly state-owned companies, 9 joint-stock insurance companies, 4 Sino-foreign joint-venture insurance companies and1/branches of foreign-funded insurance companies. According to the business area, there are 8 national insurance companies and 20 regional insurance companies; According to the nature of business, there are three comprehensive insurance companies, property insurance companies 12, life insurance companies 12 and reinsurance companies 1 2. The insurance market has initially formed a new pattern with state-owned commercial insurance companies as the main body, Chinese and foreign insurance companies coexisting and many insurance companies competing for development.

With the overall recovery of domestic insurance business, various insurance businesses have achieved remarkable results. In 1980, the national insurance premium income was 460 million yuan. By 1999, it had grown to13.932 billion yuan, an increase of more than 300 times, with an average annual increase of 35.08%. The types of insurance provided have also expanded from the initial single property insurance to hundreds including property insurance, personal insurance, liability insurance and credit insurance.

(1) property insurance

The recovery of domestic insurance business from 65438 to 0979 began with the recovery of property insurance business. From 1980 to 1995, property insurance business has an absolute advantage in domestic business, accounting for 1980, 198 1 year, 98.2% and 1983 respectively. With the development of other insurance businesses, the proportion of property insurance has decreased year by year, accounting for only 37.4% in 1999. Among property insurance, enterprise property insurance, means of transport and third party liability insurance are the main types of insurance. At the beginning of the recovery of domestic business, the company's property insurance premium accounted for the vast majority of property insurance, and it was not caught up by transportation and third-party liability insurance until 1987, but the company's property insurance is still one of the main types of domestic business. Transportation and third-party liability insurance developed rapidly, and the proportion of these two premium income in total premium income soared to 42.2% in 1985. From 1987, it became the largest property insurance product and has remained so far.

(2) Personal insurance

1982, China People's Insurance Company resumed life insurance business, and the premium income in that year was only1590,000 yuan, accounting for 0.2% of the total domestic premium income. By 1999, the premium income was 872 1 100 million yuan, accounting for 62.6% of the total premium income in that year. At the initial stage of personal insurance business recovery, the types of insurance provided were mainly group personal accident insurance, simple life insurance and old-age insurance, and then extended to various medical insurance, children's education insurance, marriage insurance and group life insurance.

(3) Agricultural insurance

1982 agricultural insurance began to resume trial operation, which developed rapidly and the trial operation scope was gradually expanded. When the pilot was resumed, there were only several types of insurance, such as pig insurance and cotton insurance. By 1999, the types of insurance have exceeded 100. Because of the high risk of agricultural insurance, complicated underwriting technology and high payout ratio, all countries in the world are generally supported by the government. Since the trial operation of 1982 resumed, the breeding insurance has been operated by China People's Insurance Company all over the country. 1986 after the establishment of the agriculture and animal husbandry insurance company of Xinjiang production and construction corps, it also started the agriculture and animal husbandry insurance business in the designated area.

(4) Foreign insurance

Before the reform and opening up, the foreign insurance business was not interrupted, but it lingered at a very low level for a long time. After 1980, with the deepening of reform and opening-up, foreign-related insurance business has developed rapidly, and the coverage provided has expanded from more than 20 to more than 80, and the service scope has expanded from the original import and export trade to the fields of technology introduction, Sino-foreign joint venture projects, foreign contracted projects, labor export, nuclear power plants, satellite launch, international shipping and so on. At present, China insurance industry has established reinsurance business relations with thousands of insurance companies in more than 100 countries and regions in the world.

(1) The insurance legal system has been continuously improved.

Since the resumption of insurance business, China's insurance legal system construction has made great achievements.

1982 The Economic Contract Law of the People's Republic of China, which came into effect, made special provisions on property insurance contracts, which was the first time that new China had substantive legal provisions on insurance. 1983 In September, the State Council promulgated and implemented the Regulations on Property Insurance Contracts.

1985 In March, the State Council promulgated the Interim Regulations on the Administration of Insurance Enterprises, which played an important role in strengthening the supervision of the insurance industry.

1992165438+10, the Maritime Code of People's Republic of China (PRC) was promulgated, which stipulated the marine insurance contract.

1in June, 1995, the Insurance Law of People's Republic of China (PRC) was promulgated, which is of great significance for developing the socialist market economy, standardizing insurance business activities, protecting the legitimate rights and interests of the parties involved in insurance activities and promoting the healthy development of insurance business. After the promulgation of the Insurance Law, the People's Bank of China has successively formulated some supporting insurance management regulations, such as Interim Provisions on Insurance Management (Trial), Provisions on Insurance Agents Management (Trial) and Provisions on Insurance Brokers Management.

1998 1 1 China Insurance Regulatory Commission 10 was established in October, and immediately investigated the current situation and existing problems of the insurance market, and began to revise, supplement and improve the insurance laws and regulations system, and successively promulgated the Provisions on the Administration of Insurance Companies, the Interim Provisions on Investment Insurance Companies and the Provisions on the Administration of Insurance Appraisers.

(2) Insurance supervision has been continuously strengthened.

In the early 1950s, the People's Bank of China was the competent authority of the insurance industry. After imitating the practice of the former Soviet Union, the supervision of the insurance industry was handed over to the Ministry of Finance on 1952. 1959 The domestic insurance business was closed, and China People's Insurance Company only handled foreign insurance business, and administratively became a branch of the Foreign Business Bureau of the People's Bank of China. With the recovery of domestic insurance business, China People's Insurance Company was separated from China People's Bank on 1984 and became a bureau-level economic entity directly under the State Council. Therefore, from 1959 to 1984, the People's Bank of China is not only engaged in insurance business, but also responsible for the leadership and management of the insurance industry. Since 1984, the People's Bank of China has been exercising the function of central bank, and insurance supervision is one of the important tasks. The Provisional Regulations on the Administration of Insurance Enterprises promulgated by 1985, the Law of the People's Republic of China on the People's Bank of China and the Insurance Law of People's Republic of China (PRC) promulgated by 1995 all make it clear that the People's Bank of China is the regulatory authority of the insurance industry.

With the gradual deepening of the financial system reform and the continuous development of the insurance industry, insurance supervision has been continuously strengthened. 1998 in order to strengthen insurance supervision and implement the policy of separate operation and management of banking, insurance and securities, the CPC Central Committee and the State Council decided to establish the China Insurance Regulatory Commission. The establishment of China Insurance Regulatory Commission is an important milestone in the history of insurance development in China. Since then, the insurance industry in China has entered a new historical development period.

At the same time of government supervision, self-regulatory organizations in the insurance industry are constantly emerging and improving. At present, insurance industry associations have been established in most parts of the country.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.