Download Press release:Retirement Planning and Healthcare of Chinese

70% of Chinese HNWIs interested in retirement communities
Healthcare facilities are make or break factor for high-end retirement communities
Leading insurance firm Taikang Life and leading market researcher Hurun Report jointly
release Retirement Planning and Healthcare of Chinese HNWIs 2015
(24 September 2015, Beijing) Taikang Life and Hurun Report today jointly released Retirement
Planning and Healthcare of Chinese HNWIs 2015. This 65-page report is based on a study of
1119 High Net Worth Individuals (HNWIs) from 35 regions across China, and 40 one-to-one
interviews with HNWIs in the first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen. It
is the most robust and serious report highlighting the needs and concerns of the Chinese
HNWI in the fields of retirement planning and healthcare.
A key finding is that 70% of HNWIs want to know more about high-end retirement communities.
Professional healthcare ranks as the most important feature.
This is an English language summary of the full Chinese press release which can be found at
www.hurun.net.
Individuals with CNY 10 million grow a record high.
As of May 2015, there were 1.21 million mainland Chinese individuals with personal wealth of
CNY 10 million or more, an increase of 120,000 from the previous year, a record growth rate of
11%. For individuals with CNY 100 million or more, the growth rate hit a staggering 16%, to hit
78,000 individuals. In Hong Kong and Taiwan, the number of individuals with CNY 10 million or
more was 198,000 and 167,000 respectively, whilst individuals with CNY 100 million
numbered 11,000 in Hong Kong and 9,000 in Taiwan. The total assets of mainland China’s
1.21 million HNWIs reached US$9.5 trillion.
Based on the size of Chinese HNWIs, there is a high expectation that the high end of life
insurance, pensions and health insurance will boom.
They are very young.
Individuals with CNY 10 million are only 40 years old on average,
whilst the average age of individuals with CNY 100 million is 44. The male to female ratio is 6:4.
The average annual disposable income was US$400,000 per household, or US$470 billion in
total disposable annual income.
Our survey revealed that cash deposits and real estate investments remain the most important
wealth planning, with 98% of respondents having these. Insurance and financial investment
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products followed, with more than 70% of Chinese HNWIs investing in them. 31% invested in
art and 20% in VC/PE.
Aside from work, HNWIs in China are most interested in financial investments. Friends’ or
relatives’ recommendation is the main channel by which HNWIs get their financial information,
Most HNWIs buy insurance as a safety net rather than as an investment tool.
90% of China’s individuals with CNY 10 million currently own life insurance products. The
average premium paid by each individual is US$5,800, and the scale of the annual premium
paid by the HNWIs group reached US$6.3 billion, constituting 4% of China’s total life insurance
purchases.
Of HNWIs who owned life insurance products, 90% owned health insurance, 82% endowment
insurance, and 73% casualty insurance. This indicates that most HNWIs buy insurance as a
safeguard rather than an investment tool. Among the 90% who own life insurance, they
recognized its importance, scoring it on average 7.9 out of 10. The wealthier they were, the
more importance HNWIs place on life insurance.
An important factor influencing HNWIs to buy life insurance is recommendations from relatives
and friends. This is also their most frequently consulted and most trusted channel for obtaining
life insurance information. As their age increases, their level of trust and reliance on this
channel grows. Other channels of information include insurance companies, official websites
and sales persons.
The types of value-added services that HNWIs would most like insurance companies to
provide are health checks and fitness programs. This need is very similar to the opinions
expressed by experts during our qualitative interviews. Experts felt that life insurance
companies should strengthen their services before accidents happen, raising the intervention
level, rather than waiting until an accident happens to carry out the insurance.
More than 70% of respondents expressed great interest in high-end retirement
communities.
Chinese HNWIs have a higher enthusiasm towards medium and high-end senior living
communities, with their interest reaching 70%. 45% believed they would need these
communities. Males are more interested than females and the younger the respondents, the
higher the enthusiasm towards retirement communities.
The professional healthcare expertise of these retirement communities is the main attraction
for HNWIs. This includes healthcare facilities and nurses. Next come meals, regular physical
examinations, leisure activities, natural environment and fitness facilities, with the ratio on
average reaching 50%. Non-first tier city HNWIs favored regular physical examinations most,
while those in first tier cities prefer scientifically reasonable physical activities and facilities.
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Individuals with CNY 100 million’ concerns are a little different. They care more for natural
environment, followed by professional healthcare individuals, meal management, treatment
facilities and recovery care. From this, we can see that when individuals with CNY 100 million
choose medium and high-end communities, they pay more attention to factors related to
treatment cultivation.
We were surprised to discover that friends were more in demand than children for spouses
after retirement. Therefore, the traditional three generation family living situation will soon
undergo a change, indicating that China’s HNWIs’ retirement perception is in the midst of a
revolution. The ideal retirement place for HNWIs is no longer the busy heart of downtown. In its
place are residential districts with perfect facilities, and suburban housing close to favorable
natural environments. What is worth mentioning is the fact that HNWIs prefer traveling, using
lavish and leisure activities to enrich their lives in old age, rather than the traditional retirement
concept of enjoying a blissful life with children and grandchildren. From this, we can see that
HNWIs themselves have higher expectations regarding the quality of their retirement lives,
desiring a richer spiritual level.
HNWIs have various combinations of resources for retirement expenses, with 90% spending
their personal savings or investment balances. Each of property, pension and commercial
endowment insurance make up more than 60%. An average of 2.7 people per family
purchased commercial endowment insurance, with average annual premiums of CNY 150,000.
Further, for a commercial endowment insurance value added service, HNWIs generally want
to enjoy high-end health services, including high-end physical examinations, health
management, and formulating suitable dietary plans.
Private hospitals and private doctors continue to rapidly expand.
Public hospitals are the first choice for HNWIs seeking medical help, especially level 3 public
hospitals. Chinese HNWIs are mostly inclined to try private hospitals in the next three years,
with 54% choosing Chinese private hospitals and 48% international private hospitals.
Currently, the percentage of HNWIs consulting private doctors is very low, at just 5%. Only 8%
of individuals with CNY100 million have consulted private doctors. Although the utilization rate
is not high, the overall after-use satisfaction level with private doctors reached a high of 80%,
with more than half of them being very satisfied.
When HNWIs are seeking treatment, important factors affecting their choices include the
progressiveness of the treatment facility, the hospitals’ specialized field, the doctors’ aptitude
and the hospitals’ reputation. This is followed by the level of the hospital, the complete quality
of service and the hospital’s geographical location. Individuals with CNY 100 million place
more emphasis on doctors’ level of attentiveness. Regional differences show up in the
frequency at which first tier city dwellers consider the location of the hospital, and their
tendency to pay more attention to the level of doctor’s care and qualifications of the health
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institution.
The percentage of HNWIs buying health insurance has hit 80%. The cash flow guarantee for
critical diseases is the main reason they purchase health insurance, with a proportion of 70%.
60% want to enjoy an excellent healthcare environment, followed by the desire to gain access
to the diagnosis of advanced treatment facilities diagnosis and to guarantee a better
hospitalization environment. The survey also discovered that 60% of high net worth health
insurance consumers make their purchase based on recommendations from sales people of
insurance companies. Due to the fact that individuals with CNY 100 million have a stronger
consciousness towards health and treatment, their subjective desire to buy health insurance is
more than 50%.
During the press conference, Taikang Life Chairman and CEO Chen Dongsheng said,
“Retirement planning and healthcare are concerns everyone has and Taikang is a leader in the
development of this industry, committed to providing health and wealth management services
for Chinese HNWIs. I hope this report can contribute to sustainable development of the
retirement planning and healthcare sectors. I am delighted to put out this report in association
with Hurun Report, the authority when it comes to understanding and researching Chinese
HNWIs.”
Rupert Hoogewerf, Chairman and Chief Researcher of Hurun Report, said, “The rapidly
aging population is driving forward retirement planning, with 70% of Chinese HNWIs wanting
to know more about high-end retirement communities, which combine healthcare and
retirement. I am delighted to work with leading insurance firm Taikang Life to put out this
report.”
For details, please refer to the full 65-page report.
About Taikang Life
Taikang Life Insurance Co., Ltd., headquartered in Beijing, was established on 22 August,
1996. After 19 years of innovation and steady development, the company has grown up to a
nation-wide large insurance company, which operates life insurance as the core business and
owns a whole industrial chain of corporate annuity, asset management, senior care community
and health insurance. Taikang Life has been listed on "Top 500 Chinese Enterprises" for 11
consecutive years.
By December 31, 2014, Taikang Life achieved a total premium income of RMB 90 billion yuan.
Taikang Life has set up 35 branches in areas as Beijing, Shanghai, Hubei, Guangdong,
Shandong and Henan, as well as over 285 sub-branches and 4,200 sales offices of all levels
across the country. In addition, the company has established 3 data centers in Changan Street,
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Zhongguanchun of Beijing and Light Valley of Wuhan.
With its complete distribution channels of individual insurance, bancassurance, group
insurance, telemarketing and agency, Taikang Life provides customers a wide range of
insurance products including life insurance, health insurance, unit-link insurance and pension
products. Embracing internet proactively, the company devotes to innovation and exploration
in the field of internet insurance. Integrating on-line and off-line insurance services, and
providing convenient and affordable insurance products, Taikang Life is endeavoring to build
the top brand of “Internet Insurance”.
Taikang Life owns 3 subsidiaries including Taikang Asset Management Co., Ltd., Taikang
Pension & Insurance Co., Ltd. and Taikang Community Investment Co., Ltd. The company has
been fully engaged in construction of “Large Happiness Project”, which integrates four
elements of “vibrant senior care, high-end medical service, premier wealth management and
ultimate care for the senior” in the field of senior care business.
As one of the largest institutional investors in the domestic capital market, Taikang Asset
manages a total of nearly RMB 700 billion of entrusted assets. It is the first insurance asset
management company in the country which has passed the examination of Global Investment
Performance Standard (GIPS). Taikang Pension is one of the five largest specialized pension
insurance companies in China, offering package solutions of employee benefits plan for
corporations and their employees. Taikang Community is the first investment entity of senior
care community in China’s insurance industry. It is the top class real estate investor, developer
and service provider which characterizes in the combination of medical service with senior
care. Taikang Community has completed its strategic layout of senior care communities in
areas of advanced economic development as Beijing, Shanghai, Guangzhou, Sanya, Suzhou,
Chengdu and Wuhan.
About Hurun Report Inc.
China’s Leading Business and Luxury Lifestyle Media Platform since 1999
Nobody Knows China’s Rich Better!
Established as a research unit in 1999, Hurun Report Inc. has grown into a leading business
and lifestyle media platform targeted at China’s high worth individuals, on the back of its
flagship Hurun China Rich List and, since 2012, its Hurun Global Rich List. Headquartered in
Shanghai, Hurun Report has offices in Beijing, Guangzhou, Chengdu, Sanya, Hong Kong,
London, Los Angeles, Chicago and Cochin, Kerala in India.
The Hurun Rich List has grown to rank the richest individuals of China and India. In 2015, the
Hurun Global Rich List ranked 2089 dollar billionaires, benchmarking China’s and India’s top
entrepreneurs in the context of their global peers.
Digital. Hurun Report Inc has an award-winning digital media platform, reaching 470,000
unique Chinese high net worths monthly. Hurun Report’s digital media is composed of an
active social media programme on WeChat and Weibo, mobile and tablet Apps and the
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hurun.net website.
Print. 4 magazines, reaching 485,000 on average a month: Hurun Report targeted at
Chinese luxury consumers aspiring to wealth of US$5m (‘Nobody Knows China’s Rich Better’);
the Hurun Schools Guide series targeted at Chinese parents looking to send their children
overseas (‘Unlocking the Doors to the World’s Best Schools’); Wings & Water targeted at
Chinese super luxury consumers with or aspiring to US$50m (‘Beyond First Class’) and Horse
& Polo China (‘For Horse Lovers’).
Conferences: Hurun Report Inc hosts over 100 events across China every year, led by its 4
flagships in Shanghai, Beijing, Shenzhen and Sanya every year. Hurun Report Inc hosts a
further ten in the US, London, Singapore, Australia and India) every year.
Market Research. Hurun Report’s close personal relationships with many of China’s leading
entrepreneurs provides the basis for its fast-growing market research division. Hurun Market
Research has developed expertise in the sectors of private banking, insurance, luxury drinks,
luxury cars and consumer electronics.
For further information, see www.hurun.net
Official Wechat platform: HurunReport
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