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Author: Gao Shan
Product: global Finance
A few days ago, AIA Life launched a new version of "AIA worry-free (2024) high-end medical insurance", some of which caused heated discussion.
Many policy-holders expressed dissatisfaction with the contract terms of the new version of the product and the behavior of modifying the list of expensive hospitals of the insurance-free series of medical products during the insurance period.Nodepositbonuscasino2022Negative emotions such as "friends can't afford to play" and "complaints about frying pan".
01
The adjustment of insurance policy has caused a lot of dissatisfaction.
According to the data, worry-free is a high-end health insurance for high net worth people launched by AIA in 2016.
Product features include tens of millions of insurance coverage, ultra-wide coverage up to 99 years of renewal age (under some conditions), private doctors, the world's top medical resources, and so on.
According to different needs, products can choose whether to include outpatient responsibilities, expensive hospitals, global or global coverage except the United States, and whether there is free medical care, basic medical insurance, and so on. Before the launch of the 2024 edition, it mainly sold "AIA worry-free (2022) high-end medical insurance" products.
There are three main controversial points in this adjustment: the first is the adjustment of the catalogue of expensive hospitals, the second is the adjustment of the number of annual compensation, and the third is the adjustment of renewal fees.
As the name implies, expensive hospitals and clinics refer to hospitals and clinics that exceed the usual level of medical expenses in the region.
It can be found on the official website of AIA Life that both version 2022 and version 2024 will be applicable to the list of new expensive hospitals starting from May 1, 2024. Beijing The UnitedFamilyHealth Beijing North Women's and Children's Hospital and Obsidian Medical expensive Hospital have been transferred to Beijing Yide Hospital, Beijing Xindeheng outpatient Department, Beijing Tiantan Puhua Hospital, Beijing Shanfang Hospital, Shanghai Oriental United Hospital / Shanghai Oriental International Hospital. And USMC Healthcare Group (including Shanghai Yosemite Giant Fuli Hospital, Shanghai Yosemite Medical).
At the same time, from May 1, if you choose a protection plan that does not include expensive hospitals and clinics, the insurance company will no longer bear insurance liability for the expenses incurred by the insured in the above-mentioned newly increased hospitals.
In addition, for insured customers who include outpatient plans in the insurance plan, the number of outpatient claims in version 2024 has been changed from 45 out-patient clinics of unlimited private hospitals, international departments and general departments of public hospitals to unlimited international and general departments of public hospitals, but the amount of compensation has been changed. the total amount of compensation will be paid in full within 10 times, 70% in 11 to 20 times and 50% in more than 20 times.
AIA's concept of "co-paid hospitals and clinics" currently includes all private hospitals and clinics in China (Chinese mainland only), all overseas hospitals and clinics (including Hong Kong, Macao and Taiwan), and hospitals designated by the company (currently not available).
And for policyholders who have used the outpatient and emergency departments of private hospitals more than 10 times in the most recent policy year, they will be upgraded to version 2024 the following year, and the fee will need to be increased by 25%. If the number of outpatient visits is less than 10 times in the next year, the fee increase will be cancelled and the standard rate of version 2024 will be used.
In addition, compared with the 2022 version, the adjustments also include a 15 per cent increase in rates for the age of 0-6, a 6 per cent increase for rates over the age of 7, some children who cannot be insured alone, new sleep disorders and other exemptions, and adjustments to blacklisted hospitals.
For customers who often go to expensive hospitals such as Beijing Yide Hospital, or who use outpatient clinics more than 10 times a year, such an adjustment is obviously unacceptable.
In addition, the large quota of specific projects, the 30-day waiting period and the non-reimbursement of general drugs outside the hospital are also the slots that the product has been criticized.
02
The comprehensive compensation rate increases.
A sharp drop in net profit
In fact, it is common for similar short-term health insurance to change terms when launching new products, and AIA is not the only one to update and adjust the terms recently.
According to an AIA agent, the adjustment has the greatest impact on policies that include outpatient liability, while policies that include only hospitalization liability are mainly affected by the adjustment of the list of expensive hospitals. And only 1% of the regular customers who need to switch to version 2024, that is, those who use the clinic more than 10 times a year.
But the cause of the controversy is also clear. When some customers apply for insurance, they focus on the number of outpatient claims made 45 times, or the medical experience of some private hospitals that have been added as expensive hospitals this time. The new contract is bound to affect the rights and interests of these people. AIA has made a big adjustment this time, and the act of increasing the number of expensive hospitals is unique in the near future, so it has caused a lot of controversy.
In addition, the behavior of directly changing the content of insurance during the period of the insurance contract is also one of the controversial points. it is a common practice in the industry to inform customers that expensive hospitals will be adjusted at the time of renewal, and it is up to customers to choose whether to include new contracts for expensive hospitals.
For the reasons for the relevant adjustment, even if there is no clear statement, it is not difficult to infer or from high compensation rates, product losses and other reasons, and by limiting the number of reimbursement to prevent excessive medical treatment and other behaviors.
At present, the specific compensation rate of the product is not known, but the overall comprehensive compensation rate of AIA's personal short-term health insurance business from 2020 to 2023 is 24%, 27%, 27% and 34%, respectively.
The industry generally believes that the comprehensive compensation rate of short-term health insurance is in the range of 50%, 80%, which is a sign of relatively healthy business development, which can not only take into account the compensation of policyholders, but also meet the needs of continuous operation of products.
Although the compensation ratio of AIA is not high at present, it will increase more in 2023 than in 2022.
In addition, AIA's net profit fell sharply in 2023.
In 2023, AIA's operating income was 679.Nodepositbonuscasino2022.1.8 billion yuan, an increase of 19.63% over the same period last year; of which insurance business income was 60.761 billion yuan, up 19.05% over the same period last year; and investment income was 9.345 billion yuan, an increase of 22.66% over the same period last year.
In the same period, the net profit of AIA was only 4.116 billion yuan, down 28.23% from the same period last year.
One of the important reasons for the decrease in net profit is that the reserve for insurance liability increased by 47.38%, from 25.982 billion yuan in the previous year to 38.34 billion yuan.
At the end of 2023, the comprehensive solvency adequacy ratio and core solvency adequacy ratio of AIA were 406.94% and 252.95% respectively, up 21.77 and 23.03 percentage points from the same period last year, and maintained at a high level.
According to the summary of the first quarter solvency report, the comprehensive solvency adequacy ratio and core solvency adequacy ratio continued to rise to 419.69% and 269.35% at the end of the first quarter of 2024.
In the first quarter of 2024, the income of AIA life insurance business was 25.881 billion yuan, up 24.31% from the same period last year, and the net profit was 348 million yuan, down 78.09% from the same period last year.
However, the rate of return on investment and the comprehensive rate of return on investment rose 0.19 and 2.50 percentage points respectively from the same period last year to 0.54% and 3.6% respectively.
03
Buy a house again.
How effective is the New five-year Plan?
In September 2023, AIA announced the "New five-year Plan": "customer demand" at the national media conference in 2023. Take the three core keywords of "customer-driven, innovation-driven, regional development" and the four strategic pillars of "products and services, excellent marketer channels, excellent multiple channels, regional development" as the round, supplemented by solid internal skills at the bottom as a boost to stimulate new momentum for sustainable and high-quality growth.
AIA believes that under the "New five-year Plan", the company's "customer-driven" effect is prominent. In 2023, calculated in terms of annualized new premiums and new insurance policies, new customers will bring more than half of the contribution to new business; excellent channels will develop in an all-round way, and the value of new business in bancassurance channels will more than triple. Regional expansion has progressed steadily. After Henan Branch was approved to open, Shijiazhuang Central Branch was rebuilt and upgraded to Hebei Branch, Luzhou Central Branch and Yichang Central Branch and Xiangyang Central Branch was approved to open. In terms of persisting in investing in and ploughing China, AIA has also attracted attention by investing heavily in Beijing to buy land.
Although the domestic real estate market is not optimistic in recent years, AIA's investment enthusiasm is getting higher and higher.
Previously, AIA Life acquired a 90% stake in Shanghai Shisen Real Estate Co., Ltd. (hereinafter referred to as "Shisen Real Estate") and its 100% shareholder loan debt in December 2022, with a total of about 5.03 billion yuan, thus obtaining the landmark project of Shanghai North Bund 8Qing site.
After taking the plot, AIA expects to invest no more than 8.7 billion yuan to turn the 225000-square-meter building into a new landmark on the North Bund.
In February 2023, AIA Life signed a "Capital increase Agreement" with Shanghai Shisen to increase capital to Shanghai Shisen with a total of about 4.889 billion yuan in creditor's rights and 3.52 billion yuan in cash, totaling about 8.409 billion yuan. After the completion of the capital increase, the company holds about 99.63% of Shanghai Shisen's equity. The amount of major related party transactions between the company and Shanghai Shisen Real Estate Co., Ltd. is about 8.409 billion yuan.
According to the solvency report for the first quarter of 2024, when AIA picked up money in Beijing in January and March 2024, it was appropriate for Enterprise Management Consulting Co., Ltd. to invest 2.252 billion yuan in the field of real estate investment.
The last time it appeared in the news was on October 17, 2022, when the Bo Rui Building, located in Beijing's Chaoyang third Ring Road CBD business core district, was successfully auctioned for 2.037 billion yuan (equivalent to a 30 per cent discount). The bidder was Beijing Shiyi Enterprise Management Consulting Co., Ltd.
According to the information, AIA acquired 95 per cent of Shiyi shares from Wuhu Xinkade Investment Partnership (limited partnership), a subsidiary of the Cade Group, between December and January 2023, with a total consideration of nearly 2.4 billion yuan.
After Cade Group took over the Borey Building, it was transformed into Cade Star Trade, and the project has now been renamed AIA Financial Center on the Cade Group's website.