In December, the meeting of the Political Bureau of the CPC Central Committee and the Central Economic Work Conference were held successively to analyze, study and systematically deploy the economic work in 2024, and set the general tone of "seeking progress while maintaining stability, promoting stability with progress, and establishing first and then breaking through" for the economic work in 2024.
As the blood of the economy, finance has been given an important mission, and the Central Economic Work Conference proposed to guide financial institutions to increase their support for scientific and technological innovation, green transformation, inclusive small and micro enterprises, digital economy, etc., echoing the requirements of the Central Financial Work Conference held from October 30 to 31 this year to do a good job in science and technology finance, green finance, inclusive finance, pension finance, and digital finance.
As one of the three major comprehensive financial groups in mainland China, Ping An has the unshirkable responsibility to respond to policy requirements and play the role of financial and economic bloodline, and has been practicing the requirements of the "five major articles", and the comprehensive financial model it has created is based on science and technology, relying on the two business models of "comprehensive finance + medical pension", focusing on the diversified financial and life service needs of the Chinese market It has always been the essence of Ping An's comprehensive financial model.
Technology + digital shape new financial formats
"Leading the construction of a modern industrial system with scientific and technological innovation" is the first task among the nine major tasks proposed in the Central Economic Work Conference in 2024, and its importance can be seen. Technology is the core competitiveness of financial institutions, and Ping An has always attached great importance to the implementation of digital technology in the financial industry.
As early as 2013, Ping An of China put forward the strategy of "technology-led finance", and was the first financial company to clearly put forward the strategy of science and technology. In 2017, Ping An formally established the dual-drive strategy of "finance + technology", began to explore artificial intelligence and digital application practices in 2018, and proposed a "comprehensive digital strategy" in 2019.
Ping An has been setting a technology strategy for 10 years, and its long-term persistence has enabled it to achieve good results, and Ping An's digital capabilities are the most comprehensive among all comprehensive insurance groups at present.
As of the end of September 2023, Ping An has a first-class scientific and technological talent team of more than 3,200 scientists. The Group has applied for a total of 50,815 patents, ranking among the top international financial institutions.
Relying on a team of top-notch scientific and technological talents, Ping An has made pioneering explorations in promoting the implementation of large-scale models in the financial industry. The White Paper on the Deep Empowerment of the Insurance Industry by Sunshine Insurance Group and PBC School of Finance, Tsinghua University, etc., includes cases of Ping An's large-scale model technology implementation.
For example, Ping An Life has launched a digital human product based on a large model, which is mainly used to assist agents to communicate with customers more effectively. This product can guide new agents in the communication to help them better understand customer needs, and at the same time, it can also collect and organize customer information to provide accurate product recommendations based on customer needs.
Ping An Bank uses AIGC technology to conduct in-depth analysis of customers' personal information, historical borrowing records, consumption behavior and other data, and has successfully established a refined credit rating system. Based on this system, they can tailor personalized borrowing products and services for customers with different credit ratings, borrowing needs and preferences. This personalized service includes differentiated settings for loan amounts, loan terms, interest rates, etc., with the aim of increasing customer satisfaction and loyalty.
Ping An Health has created the "ChatGPT" AskBob intelligent doctor for doctors, which is based on 40 million medical literature, 200,000 drug instructions, 20,000 clinical guidelines and other Chinese and English medical knowledge graphs, as well as a Xi model that integrates in-depth learning, to provide doctors with individualized and accurate diagnosis and treatment recommendations and auxiliary decision-making. As of February 2023, AskBob serves more than 1.4 million physicians, covering 46,000 medical institutions nationwide, and provides 270,000 diagnosis and treatment decisions per day, especially in places with limited medical resources.
Ping An is not only able to use technology to improve the quality and efficiency of its financial business, but also has the ability to export. As a pioneer explorer of AI in the field of financial technology in China, OneConnect, a subsidiary of Ping An, has taken the lead in deploying large models and generating intelligence, and has applied them in financial vertical fields such as banking, insurance, and investment. Based on Ping An Group's more than 30 years of experience in financial business, the "Gama Zhiying Voice Solution" created by it focuses on deeply cultivating the financial industry, relying on the robot platform that supports the adaptation of information and innovation, innovatively combines "product" and "business", and creates 300+ voice robot processes, 3000+ text FAQ libraries, 200+ quality inspection models and 60+ intelligent auxiliary templates for intelligent risk control, intelligent marketing, and intelligent customer service. AI operation team building and training consulting and AI scenario effect improvement services are key steps to realize OneConnect's early layout of the AI track.
The above cases show the results of Ping An's practice in technology finance and digital finance, and with the implementation of more technological achievements, Ping An is also leading the development of new financial formats.
Finance + medical care to create a new model of pension finance
The problem of aging is becoming more and more urgent in front of the Chinese people, and the recent Central Economic Work Conference proposed to "develop the silver economy". According to estimates, the silver economy will become a new economic growth point in the mainland, and by 2050, the scale of the silver economy will reach nearly 50 trillion yuan, accounting for 35% of the total consumption, and the National Commission on Aging predicts that by 2030, the scale of the mainland's pension financial market will reach 22.3 trillion yuan. For financial institutions, the development of pension finance is not only the policy guidance of the country's sound multi-level social security system, but also an important layout for future business growth.
Ping An's strategic layout of "Integrated Finance + Healthcare" aims to empower the main financial business through a wide-coverage, fully closed-loop medical and elderly care ecosystem.
In July 2022, the registered capital of Ping An Pension Insurance Co., Ltd. increased from 4.86 billion yuan to 11.603 billion yuan, making it the largest registered capital insurance company in mainland China.
Relying on the resources of Ping An Health and Peking University Medical within the group, Ping An Pension Insurance actively provides corporate customers with "health security entrusted management business" and other health management services, tailors enterprise employee health management solutions for enterprises, and realizes the integrated service plan of "insurance + health". On the basis of the original insurance, we will expand health examination, health consultation, health promotion, disease prevention, chronic disease management, medical services, rehabilitation care and other services to provide health management services for employees throughout the life cycle.
Ping An Pension puts forward the business philosophy of "affluent pension + healthy pension = happy pension", gives full play to its professional capabilities in commercial insurance development and design, long-term capital investment management, medical and health ecological integration, etc., builds an integrated pension ecosystem, provides full-life cycle pension and health services, and provides one-stop service solutions such as insurance, annuity, health services and wealth management for corporate and individual customers.
This one-stop solution is mainly composed of three parts, one is the pension financial products, according to the customer's risk tolerance at different life stages for flexible product configuration, the strategy covers the entire life cycle; the second is the pension financial service, to create a one-stop pension solution for the people, to meet the needs of elderly care, health management and other services; the third is the pension service platform, and constantly improve the "pension zone" online platform, providing pension ledger, pension gap calculator, pension product robo-advisor, Functions such as matching elderly care services to provide customers with more accurate and efficient services.
Under the strategy of "integrated finance + medical health", the Group provides customers with a full range of one-stop services from exercise, prevention, detection, guidance, treatment, rehabilitation, maintenance, and insurance protection, creating a fully closed-loop medical and elderly care ecosystem, and various businesses in the ecosystem empower each other to achieve the effect of "1+1>2".
As of the end of September 2023, 30% of the Group's new customers come from the medical and elderly care ecosystem, and the average customer contract and AUM of customers using the medical and elderly care ecosystem are 3.42 and 56,100 yuan, which are 1.6 times and 3.4 times that of customers who do not use the medical and elderly care ecosystem, respectively.
Life insurance business is the most direct beneficiary business of the medical and pension ecosystem. Ping An's latest November premium data was far better than market expectations for both monthly and cumulative months. In the first 11 months, Ping An achieved a total of 738.378 billion yuan in original insurance premium income, a year-on-year increase of 4.52%, of which Ping An's life insurance income was 433.949 billion yuan, accounting for 58.77% of the total premium income, nearly 6 percent, followed by property insurance, accounting for 37%. It is worth mentioning that in the first 11 months, Ping An's life insurance premium growth rate was 6.84%, faster than the overall premium growth rate, and life insurance has resumed positive monthly growth in November.
Green + inclusive, build an ESG integrated development system
High-quality development is the core keyword of the Politburo meeting and the Central Economic Work Conference in December, and ESG, that is, Environmental, Social and Governance, has become the core indicator of high-quality development of enterprises today. More and more outstanding enterprises have begun to attach importance to the concept of ESG and integrate it into their development strategies, among which green finance and inclusive finance are the key to the ESG concept of financial institutions.
On June 28, the Sustainability Yearbook (China Edition) 2023 released by Standard & Poor's showed that Ping An was rated as the top 1% of S&P Global ESG scores for Chinese companies, the highest rating for insurance companies in China (including Hong Kong and Macao), and the only insurance company in the top 1% of the list.
On November 29, MSCI, an internationally renowned index agency, announced its latest annual Environmental, Social and Governance (ESG) ratings. Ping An received an A rating for the second consecutive year for its excellent management performance in ESG, maintaining the No. 1 rating in the Asia Pacific region in the "Multi-Line Insurance & Brokerage" category.
MSCI's explanation for Ping An's first rating upgrade in 2022 is based on Ping An's industry-leading performance in "financial inclusion", as well as strong improvements in "responsible investment, climate change vulnerability, corporate governance and corporate behavior", and a focus on the company's deepening responsible investment practices and five-year green finance goals.
It has been recognized by two international institutions in terms of ESG, which also fully demonstrates Ping An's efforts in green finance and inclusive finance.
In terms of green finance, Ping An actively promotes green finance and helps China achieve its goals of "carbon peak" by 2030 and carbon neutrality by 2060. As of the end of June 2023, Ping An has invested more than 8.27 trillion yuan to support the development of the real economy, with a green investment scale of 140.929 billion yuan and a balance of green loans of 134.926 billion yuan, and in the first three quarters of 2023, Ping An Green Insurance's original insurance premium income reached 26.276 billion yuan.
In terms of inclusive finance, Ping An does not just make "inclusive finance" stay at the conceptual level, but implements it through practical business, on the one hand, it provides financial support such as credit and insurance for key groups such as small and micro enterprises and new citizens, on the other hand, it allocates financial resources to the three rural areas through the integrated development model of primary, secondary and tertiary industries to help rural revitalization, and is committed to embedding technology into all aspects of services to implement digital inclusive finance.
For example, in Chenghai, Shantou, Guangdong, a small and micro enterprise that has been engaged in the production and manufacture of toy water guns for more than ten years, because its customers are mostly regular customers, and the company's transactions are mainly oral agreements, and there is no written contract archive, and there is a lack of corresponding sales documents, warehousing tables and other information to support it, which makes it difficult to obtain evidence when applying for bank loans. Another business owner who runs a toy car in Chenghai was also stuck because the output value of the assets used as collateral could not be converted into valid data proof required for financing.
Such problems are widely existing in the local toy industry chain, in this regard, Ping An Bank launched the "Huimin Loan-Shantou Chenghai Toy Industry Loan" based on the "new micro loan - small and micro business loan". Through the form of online convenient application and offline door-to-door intimate service, it provides flexible financing methods and preferential financing interest rates for Chenghai small and medium-sized toy enterprises, and accurately injects financial "living water" into the development of local characteristic industries.
According to the data, as of the end of September 2023, Ping An Bank has a total of 1.054 million small and micro enterprise loans with a single credit line of 10 million yuan or less excluding bill financing, of which 85% are with a loan amount of less than 1 million yuan, and small and micro business owners and individual industrial and commercial households account for the absolute majority.
In the future, we also look forward to Ping An playing its role as a leading comprehensive financial group in China, continuously fulfilling the requirements of the "Five Articles", and contributing to high-quality economic development.
(This article was first published in Titanium Media App, author|Liu Yangxue)
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