| By the end of June 2007,CIRC announced on the website that a select value investment account of variable universal life insurance(VUL) would be set up in China Life. In the same day , another four investment accounts of the variable universal life insurance in ING Capital Life were confirmed as well. Earlier, eight investment accounts in CIGNA & CMC have been approved. Afterwards, the news is coming that VUL in Ping An which has closed down for years will resurface. If we say that the market position of VUL can not be ignored with China Life's joining,then the return of Ping An which has been injured by it refelects market confidences recovering. Another report, New China and Tai Kang are planning on VUL. Joining of china capital company will push the market to another climax .According to statistics, the premium of VUL grows swiftly in the first quarter 2007. The insurance premium income throughout the country is 3.112 billion yuan, increasing by 177.21%. In the first half of all insurance premium income ,the VUL insurance premium in some companies accounts for 90% or more in the banking channel, also occupies in agent channel 50% above. According to data of May announced in mid-June, insurance premium income in China Life is 12.867 billion yuan, decreasing by over 1% year-on-year. And in Ping An it receives 7.022 billion Yuan, falling by 10.37%. Compared sharply to it, this year's income in several companies which have promoted VUL is 2-3 times as much as that of the same period last year. Considering VUL as the core business, Skandia company reaches as much as 626 million yuan in the first five months, over 2 times higher than last year's 207 million yuan. In the first quarter, in Allianz China which grows rapidly in corporations with foreign capital, its VUL occupies above 60% in bank insurance, and receives the scale insurance premium of 487 million yuan, an increase of 140% compared to same time last year.Under the background of life insurance growthing slowly this year, the sustained and rapid growth VUL will become a point of growth for many life insurance companies.In addition, the new VUL Actuarial Provision will provide another development opportunity. Since October,1 this year, every product that fails to conform to this will not be allowed. The new Provision strenghens VUL's safeguard function, reducing handling charge of purchase and more conducive to consumers. Generally speaking, in the context of continuous growthing of stock market, because of linking investment and ensure together, VUL's attractiveness will become stronger and stronger. The insurance market is expected to usher in yet another "blow-out.".The significance of research :This papar analyzes on Variable Universal Life insurance 's origin and development, its characteristic and necessary internal and external conditions in China in the context of it's resurfacing again. From the microcosmic angle, it studies how a insurance company promote the Variable Universal Life insurance successfully. Through it, the insurance companies can have more rational understanding about VUL , and inspect how oneself suits to develop it as well as to impel and so on. The hope will enable to provide some references for the insurance companies which will plan to promote or have it already.Technical route and structure of research: Under the background of resurfacing of variable universal life insurance, this paper analyzes variable universal life insurance's nature, characteristics and advantages comprehensively. And it reviews the development of it in China. Through Ping An Storm, it draws out the external conditions and internal factors of the developing of variable universal lfe insurance in China and borrows ideas from foreign counties. Finally, from the microscopic angle, the essential conditions are proposed for a company to promote this insurance successfully. This paper combines macroanalysis and microanalysis, theoretical research and demonstrate analysis together. And using method of comparative analysis to study the development of VUL. Most of current papers about variable universal life insurance are only from macro-perspective to analyze, and give some frame recommendations. But this paper is innovative to propose for individual company, from macroscopic angle to microscopic angle, combining the actual cases and practical experience with them. Because of this, the paper will be more practical. |
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