简体中文 | ENGLISH


Online Banking

 
 

History

 
 


China Insurance Company Established to Propel the Insurance Business (1931)


 

As insurance business was introduced to China along with the imperialistic economic aggression, it was always monopolized by foreign insurers. The insurance business was very profitable with premium income of up to 40 million to 50 million yuan per year. As early as in 1885, China Merchants Steam Navigation Company allocated funds to establish two insurance companies, the Renhe and the Jihe, which were the pioneers of Chinese insurance companies. However, due to insufficient funds and poor operation, it was difficult for them to contend with foreign insurance companies.

When Zhang Jia'ao visited abroad in 1929, he was deeply impressed by the role of the American insurance business in addressing the American financial crisis in the Great Depression. Therefore, Zhang suggested to the Board of Directors that a China Insurance Company should be established to ensure safety of properties and loans of Bank of China and increase income by collecting premium. The Board of Directors accepted the suggestion and decided that the authorized capital of China Insurance Company was 5 million yuan, half of which was to be contributed solely by Bank of China. In November 1931, China Insurance Company was officially opened at the site of Bank of China on Renji Road (now Dianchi Road), Shanghai, and Song Hanzhang, the general manager of Bank of China Shanghai Branch, concurrently held the position of Chairman of the insurance company. Out-bound agencies were founded in all organizations of Bank of China.

At that time, the main business of China Insurance Company included general insurance, reinsurance and life insurance.

The general insurance was mainly fire insurance at the initial stage, and expanded to cocoon insurance, cash and notes insurance, transport insurance, automobile insurance, parcel post insurance, cow insurance, elevator insurance, window glass insurance, hull insurance, water transport insurance and so on.
With regard to reinsurance, in order to seek stability and reduce risk, upon acceptance of a policy, the insurance company set a total amount of self-liability (namely the self-reserved amount) in certain risks to leave the premium exceeding the limit to other insurance companies for reinsurance. The limit of the reinsurer for a risky party was the agreed maximum amount and the agreed "multiple" for acceptance, and the "multiple" was called as "lines". Bank of China, together with the British Sun Insurance Company and several other insurance companies, assumed 10 of the 20 lines, and the remaining lines were assumed by other insurance companies in London.

In 1934, a fire broke out in Hankou Shenxin No. 4 factory. Bank of China granted large amount of loans to the factory, and all properties of the factory were underwritten by the China Insurance Company Hankou Agency, with all losses converted into over 2 million yuan's silver dollars which accounted for 80% of the 2.5 million yuan of called up capital of China Insurance Company. This was an unprecedented claim in the domestic insurance industry. Chen Boyuan, specially appointed manager of China Insurance Company, went to Hankou to check loss immediately. Sun Insurance Company also sent senior staff to learn the situation so as to remit the assumed indemnity according to the contract. Thanks to the timely indemnity, Shenxin No. 4 Factory was enabled to rebuild plants and resume production within the shortest time. To express its gratitude, Shenxin No. 4 Factory published acknowledgement statements on full pages of Shen Bao and the News, which in fact served as a convincing advertisement for China Insurance Company, reinforcing its reputation and business volume.
For life insurance, China Insurance Company allocated 500,000 yuan in 1933 to its Life Insurance Department to start life insurance business. Over 12 kinds of products were provided including whole life insurance, savings insurance, personal accident insurance, labor insurance, employer's liability insurance and so on. The Life Insurance Department was reorganized as China Life Insurance Company in 1937.

China Insurance Company established by Bank of China in 1931 was the predecessor of the existing China Insurance (Holding) Limited Company.

Related Information:

Introduction to China Insurance (Holding) Limited Company

China Insurance (Holding) Limited Company ("China Insurance Group") is a state-owned financial insurance holding group under the State Council, whose predecessor was China Insurance Limited Company founded in Shanghai in 1931. In 1951, according to the state strategic deployment of the insurance business, China Insurance Group handed over all domestic business to People's Insurance Company of China to focus on overseas businesses. In 1998, according to a decision of the State Council, the original overseas branches and subsidiaries of People's Insurance Company (Group) Company were incorporated in China Insurance Group. China Insurance Limited Company and China Insurance (Group) Limited Company in Hong Kong implemented the management mode of "two brands and one group of staff". Since 2000, China Insurance Group recovered domestic operations of Taiping Life Insurance Limited Company and the Taiping Insurance Limited Company in succession, and established Taiping Pension Limited Company and Taiping Asset Management Limited Company. On August 20, 2002, China Insurance Group was formally renamed as China Insurance (Holding) Limited Company, which was the first financial insurance holding group in China and also the only China-invested insurance enterprise based in Hong Kong.

  [ Close Window ]
Personal Banking Login
Personal Banking(VIP) Login
Corporate Banking Login



   Overview
   Anti-Money Laundering
   Corporate Social Responsibilities
   Organization
   History
   Awards
   Bank Card Gallery
   Commemorative Bank Notes



 
  Site Map | Contact Us | Term & Conditions | Copyright | 京ICP证 060399
 
Copyright © BANK OF CHINA(BOC) All Rights Reserved.