Description of China United Insurance Service Inc's Business Segments
China United Insurance Service Inc. (CUIS) - Overview of Segments, Products, and Services
China United Insurance Service Inc. (CUIS) is primarily involved in the distribution of life and property & casualty insurance products. Operating with various subsidiaries, CUIS focuses on offering a diverse range of insurance solutions that cater to different customer needs. The business is divided into two main segments: Life Insurance and Property & Casualty Insurance.
Life Insurance Products
CUIS distributes a wide variety of life insurance products through its subsidiaries, notably Law Broker and Anhou. These products can be broadly categorized into the following types:
1. Individual Whole Life Insurance These products provide coverage throughout the insureds life in exchange for the periodic payment of fixed premiums. The premiums are typically collected over a designated period ranging from six to 20 years or until the insured reaches a specified age. Upon the insureds death, the face amount of the policy or the face amount plus accumulated interest is paid to the beneficiaries.
2. Individual Term Life Insurance Term life insurance offers coverage for a fixed period, which can last from six to 20 years. Should the insured survive the term, the policy expires without any value. These policies appeal to customers looking for affordable coverage without a long-term commitment.
3. Individual Health Insurance This category includes insurance that pays for reasonable hospitalization costs due to illness, accident, or childbirth. In cases of death related to these events, a certain death benefit is also provided. Policies generally lapse if premiums are unpaid or if the insured reaches a specific age.
4. Casualty Insurance (Accidental Injury Insurance) This type offers benefits if the insured experiences death or disability due to an unforeseen accident. Coverage typically expires under similar conditions as other life policies regarding non-payment of premiums.
5. Investment-oriented Insurance These are market-linked insurance plans that provide both life coverage and investment opportunities. A portion of the premium is allocated to funds, with the funds performance dictating the accumulated cash value. Two main types include those where the death benefit is the higher of the insured amount or the fund value, and those where it is the sum of both the insured amount and the fund value.
6. Foreign Currency Policy This policy type offers benefits paid in foreign currency, providing further diversification in terms of currency exposure. Like other life insurance, it entails fixed periodic premium payments over a predetermined period.
Travel Accident Insurance This casualty insurance policy provides coverage specifically for accidents that occur while traveling. Benefits are contingent upon the insured sustaining death or loss of limbs during the period of travel.
Overall, CUISs life insurance products made up approximately 89.8% of its total net revenues related to life insurance in the fiscal year ending December 31, 2015, highlighting their significance in the company’s portfolio. The life insurance policies are predominantly underwritten by reputable insurance firms, including Farglory Life Insurance Co. Ltd. CTBC Life Insurance Co. Ltd. and AIA International Limited.
Property and Casualty Insurance Products
The property and casualty insurance offerings are equally vital to CUIS’s strategy, with two main subsidiaries, Law Broker and Anhou, engaging in this area:
1. Automobile Insurance This is the largest segment of CUISs property and casualty insurance and includes standard policies covering damages to the insured vehicles and third-party liability insurance for bodily injury or property damage. The policies are typically one-year contracts and can include additional riders, such as coverages for passenger liability and theft.
2. Casualty Insurance These policies are aimed at insuring against loss or damage to property, offering coverage for incidents caused by direct accidents. Policies are usually written for one year.
3. Liability Insurance Designed for scenarios where the insured has to indemnify a third party due to an obligation or claim, liability insurance protects the insured against related financial consequences.
4. Commercial Property Insurance Anhou has developed a strong commercial property insurance offering that includes basic, comprehensive, and all-risk policies. These policies cover various risks, including fire, explosion, and natural disasters.
CUISs revenues from property and casualty insurance amounted to 6% from Law Broker and 8.12% from Anhou, indicating a significant contribution to overall company revenues.
The property and casualty products are backed by underwriting partners such as Zurich Insurance Company and China Pacific Insurance, among others. With a steady demand for both life and property casualty insurance solutions in China, CUIS remains focused on expanding its product offerings and enhancing its distribution network to maintain its competitive edge in the insurance market.
In summary, CUIS emphasizes life insurance products as its primary revenue source, particularly through innovative solutions that cater to various consumer needs, while also reinforcing its position in the property and casualty market. The continuous development of both product categories is essential to sustain growth and meet the evolving demands of the insurance landscape in China.
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