FUTURE PROSPECT

Looking into the future, China’s economy will maintain a long-term positive trend, and the sustained release of domestic demand will provide strong support for the smooth operation of the economy. In 2019, China will intensify its efforts to cut taxes and fees, which will effectively stimulate the resilience, potential and innovation vitality of economic development. The external environment facing the insurance industry will improve with increasing market competition.

From the perspective of regulation, greater requirements can be expected for high-quality development of the industry. The regulator’s power has strengthened since the establishment of CBIRC. It is expected that a series of regulatory measures will be launched one after another, and the high-quality development of the industry will speed up. At the same time, risk prevention efforts will also maintain a high-handed posture.

From the perspective of demand, unleash of residents’ security demand will accelerate. As residents’ income rises, people will have a stronger desire for a better life, and customers’ risk awareness and risk prevention ability will gradually improve, and their ability to select insurance products will be further strengthened. Health insurance, accident insurance and other protection businesses will be the industry’s biggest growth point. Long-term saving products will continue to rise, and annuity insurance will occupy a certain proportion in the first-year business.

From the perspective of supply, the supply-side reform of the industry will be deepened. Protection-type products will be further enriched and customer service improved. In 2018, transforming product structure, broadening service supply and improving service quality were the main measures for the industry to pursue high-quality development. It is expected that the above measures will be further implemented in 2019, and protection business will see more fierce competition.

In 2019, the Company will resolutely implement the central government’s general requirements of “steady growth, structural adjustment, risk prevention”, adhere to the general principle of “maintaining steady growth”. We will intensify the supply-side reform, give full play to the advantages of life insurance business, strengthen its synergy with health and pension insurance, continue to optimize products pipeline, sales team and service, and explore the path of high-quality development with NCI characteristics to ease the concern of health care, pension and wealth preservation and appreciation for customers.

The Company will take the following measures in 2019:

First, speed up the development of core business. The Company will respond to customer demands in time, enrich the supply of protection products with the “whole-life, comprehensive and family-wide” principle. We will focus on sales of health insurance and riders to lay a solid foundation for deepening product transformation.

Second, strengthen and enlarge the sales team. With an objective to build a team featuring “high performance rate, high retention rate and high productivity”, we will continue to forge a team with NCI characteristics and advance the transformation towards “risk managers”. On the basis of improving the existing sales team, the Company will actively recruit new agents, strengthen training and enhance management system.

Third, improve customer experience. The Company will apply more new technologies to enhance operation efficiency and expand service to win customers recognition and offer sense of gain.

Fourth, enhance investment management. The Company will stick to prudent investment strategy and proactively prevent and control risks. We will beef up the study of macro-economy, regulatory policies and market trends, grasp investment opportunities and deepen the synergy between assets and liabilities at both strategic and tactical levels.

Fifth, actively and prudently prevent and control risks. The Company will firmly implement the central government’s risk prevention requirements, step up efforts to prevent and control risks, continue to improve the risk control system, innovate risk management tools, and clarify risk prevention and control responsibilities while keeping stringent auditing and inspection.