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People's Insurance Company of China (PICC)

About the Project
Project Name: 
Migrant Workers' Personal Accident & Health Insurance
Type of Facility Project: 
Innovation Grant
Pays d’opération: 
China
Région: 
Asia and the Pacific
Project Thematic Focus: 
Insitutional models and business processes
Product: 
Life - personal accident
Type of Risk Carrier: 
regulated insurance company
Type of Distribution Channel: 
Government networks
Mutuals, community-based organizations
Non-governmental organization
Project Description: 

 

Through this pilot, PICC intends to explore ways to provide better protection to migrant workers. The project will deliver personal accident and health insurance (in case of accident) to migrant workers in selected provinces of China. Through consumer education, the target market will gain awareness of the value of insurance. This project will explore new delivery channels (local village committees, sales outlets and employment agencies) and test how to cover claims incurred in provinces other than where the policy was sold (i.e., inter-provincial coverage). For example, insured migrant workers will be able to claim reimbursement for certain medical expenses in provinces outside where the policy was purchased. In later phases of the project, PICC will also seek to add value to the product by collaborating with medical facilities to provide migrant workers with services such as direct payments and medical monitoring.

Consortium Members: 

Beneficiaries: 

The project targets the internal migrant workers in China. In 2007, migrant workers were estimated to number around 210 million and have become a pillar of the country's work force. Less educated than other groups of workers, they tend to be more vulnerable and have difficulties realizing their legal rights to employment, medical care, a pension and education of their children. PICC aims to educate people on the use of insurance as a risk management tool and cover more than 900 000 lives by the end of the pilot project.

Lessons from the Project
Learning Agenda: 
  • What are the risk management needs of migrant workers and their families? What is the value from the proposed product? What other products are in demand?
  • What is the most efficient and high-outreach sales channel for accident and health microinsurance for migrant workers in China?
  • What is the impact of consumer education on sales and renewal rates?
  • How can PICC effectively manage claims coming from a province other than where the policy was bought?
Emerging Lessons: 
  • A shifting definition of “success” hinders the early identification of a successful sales channel. 
  • Judging efficiency and impact of various channels is problematic, given the decentralized structure of the project and the difficulty in getting consistent information from all provinces.  
  • While implementing a cross-province consumer education program, it is important to balance the need for consistency and flexibility.
  • While a decentralized approach allows flexibility at the province level, it creates challenges for headquarters staff to engage with province-level initiatives.
  • Assessing the value of a product sold primarily via large group policies with automatic enrollment is challenging, without significant follow up efforts targeted at the insured population.
  • A national telephone hotline solution proved most feasible for handling non-local claims.
About the Organization
Relationship with the Facility: 
Innovation grantee
Country of Head Office: 
China
Region : 
Asia and the Pacific
Type of institution : 
Insurance industry
Participation in Microinsurance: 
Risk carrier
Organizational Overview: 

Partly state owned, Property and Casualty Company Limited (PICC) is a leading non-life insurance company in China. With more than 5,500 domestic branches, it provides a broad range of property and casualty insurance products, including accidental injury insurance and short-term health insurance.

More about the Organization