On February 17, the reporter learned from tianyancha that Taibao pension (Beijing) Co., Ltd. was established recently, the legal representative is Hao Lianshan, and the registered capital is 800 million yuan. The business scope includes elderly care services, nursing institution services (excluding medical services), property management, hotel management, etc. Equity penetration information shows that the company is 100% controlled by China The Pacific Securities Co.Ltd(601099) Life Insurance Co., Ltd. (hereinafter referred to as “CPIC life insurance”) under China Pacific Insurance (Group) Co.Ltd(601601) .
This is only an epitome of the accelerated layout of the insurance industry in the field of pension. With the acceleration of China’s aging population, the pension industry has become a new outlet, which needs to be further explored and developed. Among the enterprises entering the pension industry, insurance enterprises are undoubtedly one of the most dazzling subjects.
Insiders pointed out that the pension health industry is naturally highly consistent with the insurance industry. Investing in the pension industry can improve the competitiveness of the insurance side, promote the optimization of asset allocation at the investment side, and help insurance companies achieve connotative growth and differentiated competition. It is an opportunity that can not be missed for the transformation and development of the insurance industry.
the layout of the elderly care industry has achieved remarkable results
Recently, China Pacific Insurance (Group) Co.Ltd(601601) has made frequent moves in the field of elderly care. On February 8, CPIC life insurance successfully won a multi-functional land plot in Jiugong Town, Daxing District, Beijing, which will be used to build CPIC home Beijing International care community to meet the multi-level quality pension needs of Beijing Tianjin Hebei region focusing on Beijing. It is reported that China Pacific Insurance (Group) Co.Ltd(601601) elderly care community has covered 10 cities and a total of 11 projects to provide customers with standardized elderly care services.
For a long time, in recent years, the participation of insurance funds in the construction of old-age security system and old-age service system can be said to have achieved remarkable results. According to Cao Deyun, party secretary, executive vice president and Secretary General of China Insurance Asset Management Association, with the strong support of national policies, as one of the main forces in the field of pension finance, the insurance industry and insurance asset management industry give full play to their own advantages and characteristics and deeply participate in the construction of pension security system, It has played a major role in pension management and pension industry investment.
In terms of investment in the elderly care industry, insurance institutions represented by Taikang Insurance, China Life Insurance Company Limited(601628) , China Taiping, China Pacific Insurance (Group) Co.Ltd(601601) and everyone insurance actively layout the medical care and health industry. Cao Deyun revealed that as of November 2021, insurance institutions have arranged the elderly care industry in 34 cities across the country, providing more than 130000 beds. The proportion of life insurance companies in China has reached 47%. They have arranged the fields of elderly care institutions, communities and home-based elderly care through various modes of light and heavy assets.
The reporter learned that at present, the development mode of elderly care community is mainly divided into asset heavy, asset light and light combination mode. The asset oriented model is self-produced and self sold and directly managed. Insurance companies directly invest in and develop pension real estate projects such as pension communities and apartments for the elderly, which integrates the three roles of investors, developers and operators; Asset light operation mode mostly provides elderly care services under the home-based and community-based elderly care mode, and creates a new medical care service mode with the help of public medical resources; In the light and heavy combination mode, insurance companies are less involved in the development and construction of real estate, and more funds are used to provide nursing and operational support.
Insiders pointed out that the advantage of the heavy asset model is that the insurance company is the core person in charge of operation services, has high control over the service quality, and plays an important role in enhancing customer stickiness. However, the self built pension community of insurance companies needs to bear high initial cost and long recovery cycle, and the urban expansion speed of pension services is slow, which may lose some first mover advantages. Considering that the investment cycle of pension communities is long, and China is still in the accelerated layout stage, and the business model has not been verified for a long time, small insurance enterprises mostly adopt asset light models such as equity participation and strategic cooperation to intervene in the health care industry chain.
highly consistent with the health care industry
According to the data of the seventh national census report, China’s population aged 60 and over has reached 264 million, accounting for 18.7% of the total population. It is estimated that during the 14th Five Year Plan period, this figure will exceed 300 million, and China will enter the stage of moderate aging from mild aging.
Behind the huge pension demand, there are naturally opportunities for the development of the industry. According to the research report released by Anxin securities, the market scale of the pension industry is expected to reach 10.29 trillion yuan in 2022. Airy consulting predicts that the market scale of China’s pension industry will reach 22.3 trillion yuan in 2030.
As for the reasons why insurance companies are competing for the pension industry, Zhu Junsheng, research director of China Insurance and Pension Research Center, Wudaokou School of finance, Tsinghua University, pointed out to the reporter of the international finance news that at present, the policy support for commercial pension insurance is being strengthened, and the huge market demand is being released. The sustainable development of commercial endowment insurance requires the insurance industry to participate in the endowment service industry.
He analyzed that, on the one hand, the main expenditure items of pension include health care, nursing and medical treatment. The development of pension insurance must be combined with the guarantee of health care service resources. For quite a long time, China’s high-quality health care services are relatively scarce and the development is uneven. The combination of endowment insurance and services can meet consumers’ important demands for obtaining and locking high-quality health care service resources in advance.
On the other hand, the combination of pension insurance and pension service industry can promote the integration of liability side insurance business and asset side investment business. The pension service industry has large investment scale and long profit cycle, which requires long-term capital investment. Insurance funds have the attributes of large scale and long term, which are highly consistent with the development needs of the elderly care service industry, and can become an important source of capital for the elderly care service industry. In addition, the investment of insurance funds in the elderly care service industry can alleviate the mismatch pressure of insurance funds, avoid economic cyclical risks, weaken the impact of the instability of the capital market on the investment income of insurance companies, and improve the anti risk ability and sustainable development ability of insurance companies.
Wei Lin, general manager of CPIC pension investment company, also pointed out earlier that the pension health industry is naturally highly consistent with the insurance industry and pays common attention to human life, health and safety. Investing in the pension industry can enhance the competitiveness of the insurance side, promote the optimization of asset allocation at the investment side, and help insurance companies achieve connotative growth and differentiated competition. It is an opportunity that can not be missed for the transformation and development of the insurance industry.
From the construction of China’s multi-level and multi pillar pension security system, to large pension communities that value assets and pension services that value assets less, to pension related insurance products such as long-term care insurance and health medical insurance, insurance institutions actively participate in pension management and steadily maintain and increase the value of pension assets, Promoting the cross cycle investment of long-term pension funds plays a positive role in promoting the healthy development of the capital market and serving the real economy and national strategy. Cao Deyun said.
be practical, meticulous and excellent
Opportunities always coexist with challenges. There are many pain points and difficulties in the process of insurance participating in the elderly care service industry. Specifically, Zhu Junsheng summarized seven points:
First, it is difficult to obtain land and the return on asset investment is low;
Second, the heavy asset pension project has large investment and long profit cycle, needs stable financial support, and the capital threshold for the construction of pension community is high;
Third, the pension industry has a large industry span, involving engineering development, property management, hotel / apartment operation, medical and health management and pension care services. The management and operation threshold of pension community is high, which has high requirements for the operation ability of insurance companies;
Fourth, China lacks vocational education and training for Geriatrics, general practitioners and nurses, especially elderly care nurses, resulting in a lack of professional nursing talents and rising labor costs in the operation of elderly care communities;
Fifth, at present, China’s existing elderly care communities are still in the stage of construction and initial use, which still needs time to be tested;
Sixth, the investment exit barrier of the pension industry is high;
Seventh, the role and position of the insurance industry in the construction of multi-level pension service system still need to be clarified, and the policy environment for insurance institutions to invest in pension service industry needs to be improved.
Meng Lilian, chief expert of Sichuan Tianfu Health Industry Research Institute, also pointed out to the reporter of the international finance news that although insurance companies have both funds and markets in the elderly care industry, this does not necessarily mean success. Only by doing a good job in the elderly care industry, can we become stronger and stronger.
He pointed out that to be practical is to do practical things. Now the pension industry has many gimmicks, many names and many concepts, but few really make money. We must prioritize, develop and enter on the basis of thorough research, and do real pension services.
To be meticulous is to highlight the characteristics, create highlights and form a brand. The pension industry is an industrial tribe with a wide meaning, a long chain and covering primary, secondary and tertiary industries. We should not “grasp the eyebrows and beards at once”. We should learn to make choices, fully study the needs and market of the elderly, especially connect the payment capacity with the payment structure, products and service structure, and do a good job in the business model.
To be excellent is to make the elderly care products and services to the hearts of the elderly. Products should be in the right way, services should be in the right way, and the payment level should also be in the right way. We should start from meeting the needs of the elderly and truly solve the practical problems of the elderly life.
In addition, at the policy level, Zhu Junsheng suggested that we should first strengthen the land management of elderly care. At present, due to the lack of special land use system in this regard, the land acquisition process is difficult and the cost is high.
Secondly, provide certain tax incentives or operation subsidies. “At present, the pension industry is still in the initial stage of development, and the operation pressure of insurance enterprises is relatively large when they enter the Bureau. Some existing policies are basically aimed at non-profit pension institutions, but in fact, for-profit institutions such as pension communities are also an important part of the pension service system, and some tax concessions and subsidies should be appropriately provided with reference to non-profit pension institutions. ”
