POA Positioning for Recovery – Meeting takeaways
Salient Points in Management Presentation:
- Life agent productivity continues to improve. PICC has almost completed the agent headcount reduction plan, so the impact is expected to be minor in this year. Besides, the insurer is establishing a group of high-quality agents and raising their productivity level by targeting HNW customers and cross-selling. The company manages the mortality margin and expense margin better than the peers, though relative weaker ability to manage interest margin, but the overall new business margin is expected to be more stable this year.
- What needs to happen to see the turning point of life insurance sector? PICC expects the turning point will arrive when the market realizes a continuous m-o-m FYP growth in long-term regular-paid policies. In March/April, it has witnessed some encouraging signs but faded in May as the business was impacted by the lockdown measure on the Omnicron-wave surge. As lockdown measures are gradually easing in China, the management is cautiously optimistic but need to further observe the new business growth momentum onward.