On May 12, 2009, China Life Insurance Company announced that it would continue to expand rural micro life insurance pilot project this year. The goal is to cover more than 6 million low-income people in rural area and to collect premiums over 100 million Yuan (about 14.7 million USD). Meanwhile, 9 provinces such as Hebei and Inner Mongolia will be added, making the coverage of the pilot projects to a total of 18 provinces in China.
China Life Insurance Co., Ltd is the first company formally launching the rural micro life insurance project, following the permission of China Insurance Regulatory Commission on the issue of rural micro-insurance pilot program in 2008. In August 2008, it started in Guangxi, Hubei and 7 other provinces with a series of rural micro life insurance schemes, catering to different local needs and environments. The schemes, which are targeted at the specific risks, such as illness, disability and death among low-income farmers, have the main features of low premium, simple process and appropriate level of protection. The sales models of the schemes, basically " integrated insurance of the whole village," "joint cooperation" and "small group insurance", has received considerable popularity among rural citizens.
Till the end of 2008, the schemes in the first 9 pilot provinces had covered 2.38 million peasants with more than 1.25 million insurance contracts and 41.64 million Yuan insurance premium gathered in total.
Rural micro life insurance schemes not only benefit the rural low-income people and raise their awareness on the necessity of life insurance, but also allow the commercial insurance corporations to entry a new market and to expand brand influence.
