China Pacific Insurance Chairman: The traditional profit model that relies on interest rate spreads urgently needs to be transformed, as competition in the industry is shifting from incremental dividends to the battle over existing stock and market share.

Ask AI · How should China Taiping respond to the game of industry stock competition with its new strategy?

On March 27, Fu Fan, Chairman of China Taiping, said at the company’s 2025 annual performance briefing that, looking ahead to the “15th Five-Year Plan” period (2026–2030), China’s insurance industry is at a critical juncture where strategic opportunities and risk challenges coexist. From the perspective of macro policy, the country has made it a key strategic task to strongly develop the “five major articles” of finance, so that the insurance industry can better play the role of an economic shock absorber and a social stabilizer. From the perspective of market demand, the upgrading of industrial structure and adjustments to the population structure are generating new risk coverage and financial service demands, opening up a broad market for the insurance industry to create new momentum. From the perspective of technological change, the rapid evolution of artificial intelligence is bringing strategic opportunities to the industry.

He also emphasized that the challenges cannot be overlooked. China has entered a low-interest-rate era, and the traditional profit model that relies on the interest spread urgently needs to be transformed; industry competition is shifting from growth dividends to a game of stock competition, making the transition to high-quality development increasingly urgent.

Fu Fan pointed out that, facing the new journey of the “15th Five-Year Plan,” China Taiping will adhere to progress while maintaining stability and improve quality and efficiency, accelerating the building of a first-class insurance and financial services group with market leadership and international competitiveness. In addition to fully serving the country’s overall development priorities, China Taiping will also steadily advance a new set of three major strategies.

“The Great Health and Elder Care strategy will strengthen the advantages of specialized operations in health insurance, build a closed loop of pension financial services, and create an all-scenario, high-quality, and sustainable elder care and health services ecosystem, enabling two-way empowerment between elder care and health services and the company’s insurance core business.” Fu Fan said. The internationalization strategy, with Hong Kong as the “bridgehead” for cross-border connection and the “first launch site” for business innovation, will build a coordinated development model for onshore and offshore markets, driving a comprehensive improvement in cross-border service supply capability and global asset allocation capability. The “Artificial Intelligence +” strategy will focus on core business scenarios to promote large-scale application of AI technologies, improving efficiency and effectiveness, remaking business processes, optimizing customer experience, and innovating service models.

He also said that China Taiping will focus on forging the competitive advantage of its core business. In life insurance, it will uphold the business philosophy of value growth, deepen the professional and specialized transformation of individual insurance (agent) channels, expand the strategic layout of bank-insurance channels, continuously enrich the product matrix, and steadily increase its market share of new business value. In property and casualty insurance, it will adhere to a development path that prioritizes efficiency, improve the risk coverage system for new energy vehicles and intelligent driving, strengthen the role of the auto insurance base business, further deepen refined management for non-auto insurance, and continuously enhance underwriting profitability. It will continuously optimize the asset-liability management system, enrich allocation strategies, build a solid risk firewall, and strengthen the foundation for high-quality development.