Taikang Life Insurance
Taikang Life Insurance Sustainability Effort
Taikang Life has been taking an active part in fulfilling its corporate social responsibility. It is committed to protecting the ecological environment and promoting China’s socio-economic sustainability. Taikang Life and its chairman Chen Dongsheng have made donations to schools, universities, research projects and other social welfare projects totalling 200,000,000 yuan. The company has been sponsoring the Yabuli China Entrepreneurs Forum for 12 years; exclusively sponsoring China Economic Theory Innovation Award and jointly sponsoring the Qiu Chengtong High School Math Award for 6 years.
Taikang Life has incorporated the concept of sustainability into its business and daily operations, initiating the idea of Green Insurance. The corporation has provided its employees with a comfortable and caring work environment that is also energy-efficient. By implementing new technologies, such as a new ventilation system and a heat recycling system, the corporation has effectively reduced its office energy consumption. It has adopted a paperless office model and centralized necessary printing on double sides. Taikang Life has continued its effort to push for e-business, with 98% of its underwriting business now processed on-line and 61.30% of claims lodged on-line. It is also implementing a document e-filing system, which can further reduce the usage of paper by 4 million sheets every half year.
Facing the challenge of a fast aging population in China, Taikang has provided a solution with an innovative business mode that combines insurance business with the retirement industry. With a long payback period, retirement facilities require large-scale and long-term investment. Life insurance companies can provide the financing at a lower cost. Investing in retirement facilities is equivalent to issuing long-term corporate bonds for a period of 30-50 years. It can provide stable and long-term returns required for insurance funds, effectively solving the problem of matching the assets with liabilities for insurance companies.
Taikang is the first in China to launch a pension insurance product that combines insurance with investment in retirement. Customers can purchase the pension insurance when they are young, and when they retire, they can choose to live in Taikang retirement villages, paying the fees with their pension insurance benefits. The hybrid product combines features of a traditional insurance product with investment in retirement.
Taikang Life plans to build 25-30 retirement villages in China with a total investment of 100 billion yuan over the next 5 to 8 years. The franchised retirement villages will have 50,000 residents in the preliminary phase; and the number is expected to increase to 200,000 in the long term.