China’s largest life insurer, China Life Insurance is undertaking a corporate reorganisation for its future transformation, including manpower changes. The focus is on boosting individual life business.
The corporate revamp includes setting up new departments and closing down redundant units. For example, to strengthen personal life insurance business, the company’s individual insurance department is expanded to six departments, reported China Business Journal. Also, the e-commerce and business management departments are abolished; the financial management department is merged with the accounting department; the customer service department absorbs the security management, policy renewal, agency business management, and counter management functions, etc.
In addition, there has been staff rejuvenation at provincial level with new executives appointed as general managers of many provincial subsidiaries, replacing older staff.
The revamp takes place less than a year after Mr Su Hengxuan was appointed as China Life’s president and executive director last December.
The reorganisation is being undertaken with advice from a US consulting firm. When the revamp is completed, the headquarters of China Life will consist of around 150 offices in 30 departments, including:
- Office of the Board of Directors/ Investor Relations Department,
- Strategic Planning Department /Corporate Transformation Office
- Party Committee Office / Poverty Alleviation Office
- Human Resources Department (Party Organisation Department)
- Marketing Development Department
- Sales Department
- Individual Insurance Planning Department,
- Individual Insurance Operations Department
- Training Department
- Integrated Finance Department
- Group Business Department/Strategic Client Department
- Funds Sales Management Department
- Health Insurance Division
- Investment Management Centre
- Finance Department
- Asset Management Department
- Actuarial Department
- Processes and Operations Department
- Underwriting & Claims Department
- Financial Technology Department,
- Legal & Compliance Department
- Risk Management Department.
The reorganisation aims to shift the corporate mindset from one of managing insurance policies to customer service to capture more business from individuals.
In the first half of the year, China Life’s sales channels had a total manpower strength of 1.9m, of which the number of individual insurance agents was 1.57m (82.7% of total).
Analysis shows that although China Life had a bigger sales force than its rival Ping An, the former lagged the latter in terms of new business value. According to 1H2019 data, the value of new individual business generated by Ping An’s agency channel was CNY36.2bn with an agency force of 1.29m, the new business value of China Life’s individual insurance channel was CNY30.38bn with an agency force of 1.57m. A