The history of China Life dates back to the life insurance business engaged by the former People's Insurance Company of China (PICC) that was established on October 20, 1949. In order to quicken economic development, with approval from the central government, a unified national insurance institution – PICC was set up just 20 days after the founding of new China. A life insurance department was included.
At that time life insurance business was divided into two categories: compulsory insurance and voluntary insurance. The compulsory insurance mainly included railway, steamship, and airport passenger accidental injury insurance while voluntary insurance included employee group life insurance and simple life insurance. By 1958, 141 million RMB yuan of life insurance premium income had been generated, and people participating in employee group life insurance had reached 3 million, and people participating in simple life insurance increased to 1.8 million. This had played a positive role for stabilizing people's life.
In October 1958，the State Council held a work conference on finance and trade in Xi'an and put forward that: “After people's commune system is established, insurance is no longer needed, and domestic insurance business shall be immediately suspended”. In 1959, life insurance business, together with other domestic insurance businesses, was suspended.
After the Third Plenary Session of the Eleventh CPC Central Committee in April 1979, the State Council approved Minutes of Governors'Meeting of People's Bank of China, and made the major decision of “gradually resuming domestic insurance business”. In November the same year, the National Insurance Work Conference was solemnly convened in Beijing, announcing that the domestic insurance business which had been suspended for 20 years was formally resumed. Since then, China's insurance business ushered in a brand new era of development.
Property insurance business was resumed first, followed by life insurance in 1982. The great practice of reform and opening-up policy, the establishment and improvement of socialist market economy provided a driving force for the insurance industry. During the 13 years from 1982 to 1995, life insurance business increased by 40% on average per year.
In 1995, China's first Insurance Law came into being. In 1996, according to the requirements of the Insurance Law, non-life insurance and life insurance should be operated separately. PICC (Life) Co., Ltd. was set up by taking over the existing life insurance business from former PICC and by reorganizing 17 local life insurance companies. From then on, China Life entered an era of separate operation.
The introduction and adoption of individual sales agent system accelerated the company's development. From 1996 to 1998, agent force grew from more than 40 thousand people to 200 thousand, and the premium income increased from 19.2 billion RMB yuan to 54 billion RMB yuan. The company thus became the largest insurer in China.
In March 1999, PICC (Life) Co., Ltd. was renamed as China Life Insurance Company and became a solely state-owned corporation under the direct leadership of the State Council. Since then, China Life stepped independently onto the large arena of China's financial and insurance market. It provided life insurance coverage to millions of Chinese people, assuming the duty of serving economic development and safeguarding social stability.
In order to meet actively the challenges brought by the WTO accession, China Life made an important decision on shareholding reform in 2000, thus setting the development direction for a modern corporate system
In 2002, China Life put forward the goal of “generating 100 billion RMB yuan of premium income and ranking among the Fortune Global 500”. In the very year China Life realized premium income of 128.7 billion RMB yuan. This achievement alone made China Life a Fortune Global 500 for the first time in its history.
2003 marked a monumental year in China Life's history. In June, China Life was restructured as China Life Insurance (Group) Company (hereinafter referred to as the Group Company) and exclusively initiated China Life Insurance Company Limited (hereinafter referred to as the Life Company). On December 17 and 18, the Life Company was successfully dual-listed in New York and Hong Kong, creating the world's largest IPO of the year. Such success indicated that China Life entered a new age with more splendid prospects.
Since the restructuring in 2003, in order to accommodate to the financial trend of comprehensive operation, China Life has embarked on a journey of conglomeration development.
In 2003, the Group Company and Life Company jointly initiated China Life Asset Management Company Limited (hereinafter referred to as the Asset Company).
In 2006, the new Executive Board put forward the conglomeration strategy of “being exceptionally strong in core businesses and appropriately diversified in operation”. At the end of 2006, China Life Property & Casualty Insurance Company Limited and China Life Pension Company Limited were successively established. Meanwhile, restructuring was basically accomplished on China Life Insurance (Overseas) Company Limited, China Life Investment Holding Company Limited and Insurance Professional College. By then, a group layout took initial shape through integration of life insurance, property & casualty insurance, corporate annuity, capital management, industrial investment and insurance education.
On January 9, 2007, the Life Company returned successfully to China A share market in Shanghai, thus making itself China's only financial insurer triple-listed home and abroad. With such unchallenged position, China Life further defined its goal to build itself into a world-class financial and insurance group by implementing the conglomeration strategy of “being exceptionally strong in core businesses and appropriately diversified in operation”. To realize the goal, China Life clarified a scientific roadmap with its own characteristics, and put forward the strategic requirements of comprehensively enhancing integrated operation and management capability. China Life has strived to make itself even bigger, stronger and better in a more appropriate and faster way.
