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  • China Life’s extensive expansion into digital applications and data-based systems supports a data-driven corporate culture. Using “big data, AI and ecosystem” as strategic themes, we launched a three-year blueprint that includes a pioneering chief experience officer role. The chief experience officer works with our chief digital and information officers to build a comprehensive digital development platform, where we can incubate innovative new ideas and plans while integrating new fintech applications. Our goal is to break free from the stereotype of technology as a cold, unfeeling features by adding “heartwarming” touch to the new technological applications we provide to users. These advances put us at the forefront of the industry and make us a benchmark for InsurTech.

    The digital “big data, AI and ecosystem” strategy is based on big data value added service, AI technology enabled functions, and ecosystem alliances. Big data added service, which uses analytics for commercial decision-making, supports our Smart Labeling Library, a precise sales database, radar charts for intelligent analysis, and an insurance fraud prevention model. AI technology enabled functions include biometrics for mobile insurance, the Baby Q intelligent assistant, the AI Intelligent Instructor system, and other innovative applications. Ecosystem alliances facilitate strategic cooperation with businesses inside and outside the insurance industry, bringing us closer to existing and potential customers so that we can provide a higher-quality experience and greater convenience. For example, we engage in cross-industry collaboration by cooperating with convenience stores that offer reward points to policyholders diagnosed as having a catastrophic illness when they purchase healthy food products as an incentive for managing their health risks. In cooperation with third-party service providers (TSP), we use digital tools to determine customer needs and then follow with AI to recommend the most suitable agents to provide support. To further advance our insurance business, China Life also joined a group of 11 insurers to establish the Conservation and Claims Consortium Blockchain, which uses blockchain technologies to offer one-stop claims applications including multiple insurance companies.

    E-commerce

    China Life actively promotes insurance policy e-commerce channels, as shown by our 17% share of total premiums from the online life insurance market. Using big data analysis, we analyzed our customers’ travel habits then created travel insurance products catering to two of the most popular international destinations: Japan and South Korea. These specialized protection products, which offer basic overseas travel protection, are available online. They support government policy that aims to enhance basic protections. At the same time, in order to coordinate with digital transformation strategies underway in the banking and financial industries while participating in the bancassurance ecosystem, we added online-exclusive insurance products to banking e-commerce platforms. In 2020, the number of our members who bought such insurance policies online increased by 21% compared to 2019.

    When responding to the social environment and national policy development directions, we focus on “optimizing product structure” and “raising the Company’s long-term embedded Value” as the two main themes for product development by adhering to the core business of the insurance industry. We consider urbanization, emerging health threats (such as obesity), environment-induced health threats, population ageing, demographic changes, and other emerging ESG risks. On the basis of maintaining sustainable operations, we promote products and services that support inclusive financing and abide by the “treating customers fairly” principles. Besides satisfying the varied needs of customers at each stage of their lives, we devise solutions for the distinct pain points felt by people from different groups. Through traditional, online, and mobile channels, we provide products for children, young adults, seniors, and others, spanning from the general public to special or disadvantaged groups. In this manner, we fulfill our social responsibility as members of the insurance industry.
    Macroeconomic Environment
    • Global low interest rate environment
    • Implementation of IFRS 17
    • Demographic changes in Taiwan (low birth rate, increased life expectancy)
    • Pandemic raised greater awareness of health risks
    National Policies
    • Reasonable product profit
    • Higher threshold rules for products' guarantee components
    • Enhance regulations for post-sale management mechanisms of interest-sensitive products
    • Promote life insurance product death protection threshold policies
    • Promote pension reform
    • Promote long-term care policies
    • Promote “treating customers fairly” principle
    • Create inclusive financing performance indicators
    Development Directions of
    China Life Products and Services
    • Two Primary Objectives of Product Development: Optimize product structure, raise the Company’s long-term embedded value; in the past, we primarily promoted policies featuring substantial savings characteristics. In the future, we will focus on products that are primarily insurance in nature, promoting diverse protection products (regular pay) and insurance policies targeting elderly people, in order to better meet the needs of the general public.
    • Fit the diverse needs of customers throughout their lifetime by developing and promoting medical, retirement, nursing care and other protection products (such as multi-currency single premium and regular pay traditional policies, annuities for retirement planning, health insurances to improve medical qualities, and investment-linked policies that support investment and protection needs).
    • Focus on products that fit consumer needs or are targeted towards disadvantaged groups, in order to fulfill the principle of “treating customers fairly.”
    • Develop and promote innovative health management insurance products that have spillover effects. Use digital applications and FinTech to reduce emerging risks.

    A Pioneering Life Insurance Product Customized for People with Disabilities

    People with disabilities face greater difficulties when acquiring insurance, particularly in the areas of health check-up requirements, added fees, restricted face amount, and coverages. Therefore, at the end of 2019, China Life addressed such social risks by pioneering Taiwan’s first composite life insurance product specifically designed for people with mild to medium physical disabilities. This whole life insurance (BPGJPL) provides disabled people with the same insurance protection as general customers, thus expanding inclusive financing and fulfilling “treating customers fairly” principles.

    After releasing Taiwan’s first insurance product tailored for people with disabilities, in 2020 we reviewed our full sales procedures, underwriting process, and customer service. We then made improvements to eliminate the barriers that people with disabilities may face. For these advances, the Insurance Asia Awards gave us the Insurance Initiative of the Year award and the Taiwan Corporate Sustainability Awards gave us a Growth Through Innovation award.

    To precisely promote our life insurance products for people with disabilities, in 2020 we placed advertisements on the outsides of Taiwan Taxi’s fleet of 32 accessible cabs serving the Taipei and New Taipei City region. Product information, including our 080-service hotline info, was available inside the vehicles to directly reach people with disabilities as well as their family and friends. During the three-month campaign the taxis were ordered 34,000 times, approximately 4.67 million people were exposed to the advertisements on the outside of the vehicles, and 121,000 people saw the advertisements inside the vehicles. Besides spreading awareness of China Life’s efforts to support the disabled and treat customers fairly, the campaign provided disabled people with valuable insurance information.

    Our life insurance customized for people with disabilities is not just a single product. Rather, it is a starting point from which different departments join to launch new products that combine to create a comprehensive safety net. We made Taiwan’s first Braille introduction for an insurance product. This serves as a powerful symbol of how we carefully consider the needs of people who are blind in order to uphold our commitment to sustainable insurance principles.
     

    Dementia Prevention Spillover Policies: Protection and Care to Prepare for Dementia Risks

    In recent years, as people grew more aware of health management and the coronavirus pandemic caused them to take risks more seriously, health protection and disease prevention became popular focal points. To encourage policyholders to manage their health, develop good lifestyle habits, and reduce morbidity risks, China Life promotes health management-related policies with spillover effects. Product scope ranges from insurance for serious or specific diseases and injuries, to life insurance. At the end of 2020, approximately 500 spillover policies were in effect. Policyholders use the China Life Keep Going application to regularly upload their health data to a health database; when they achieve the designated health goals, this will qualify them for additional protections. Besides serving as a compensation mechanism for losses, spillover policies turn insurance into an incentive mechanism that encourages healthier habits, a tool for insurers to reduce claim rates, and an instrument for cutting medical treatment costs on society, thereby reaching win-win situation.

    China Life also released the first spillover health insurance product that focuses on dementia prevention. Dubbed LEGOYC 2020, the policy encourage s prevention when the policyholder is healthy, responses if dementia onset occurs, and compensates as the policyholder’s condition worsens. To further support dementia relief, China Life sponsors the Taiwan Alzheimer Disease Association. The Company’s customer service centers and district offices also joined the association’s group of dementia friendly organizations, making us the first dementia friendly insurance company. We release easy-to-understand comics and pamphlets to spread dementia-related information, and maintain a webpage dedicated to dementia prevention and health. As more people understand dementia, the dementia safety net improves.

    Microinsurance

    • 2020 premiums surpassed NT$8.35 million and there were more than 33,000 beneficiaries.

    • For three consecutive years, microinsurance premiums grew by over 40%. The accomplish rate on our 2020 goal was 234%.

    China Life introduced microinsurance products with lower premiums, lower face amount, and easily understandable terms. These products protect economically disadvantaged people or members of special groups. Accident microinsurance for groups is another way that we make basic coverage affordable for people with low incomes. With the protection of microinsurance, families can avoid the debilitating financial effects of a major accident.

    To expand synergistic effects, in 2020 we began to cooperate with the Tainan City Government and Taitung County Government on promoting microinsurance, building upon cooperative partnerships we already have with the Yilan, Yunlin, and Hualien county governments. In 2020, total microinsurance claims were NT$2.52 million.

    To sustain the virtuous cycle that results from benefits of our microinsurance products while demonstrating the influence of our value chain, we bring together sales partners, customers, NPOs, and banks. Through integrated products, channels, and services, we provide disabled people and households with comprehensive guarantees. For these efforts, the FSC awarded us a micro-performance excellence award and a micro-sustainability care award.

    Disease Prevention Products

    In the face of repercussion from the coronavirus pandemic, China Life has aimed to help people protect themselves from health risks with a diverse range of disease prevention products. We have developed endorsement clauses for nine in-patient medical care products, introduced a clause to cancel the initial 30-day waiting period restriction for notifiable infectious diseases, and adjusted hospitalization quotas on some disease prevention-oriented policies. These product features fulfill disease prevention needs for customers in all age groups while making the application process faster and more convenient. People who choose these policies are able to easily disperse medical treatment risk.

    In addition, China Life has launched a number of disease prevention care measures for policyholders to help them fight against the pandemic. One of these measures is the choice of a NT$50,000 consolation payout or a doubling of the daily hospital cash benefit for health professionals who are diagnosed with COVID-19. This demonstrates our support for health workers.

    In order to deepen our corporate culture of “treating customers fairly and treating customers as ourselves,” in 2020 China Life formulated enforcement rules for treating customers fairly. Implementation results are regularly reported to the Treating Customers Fairly Committee. To make employees more aware of this important topic, we integrated educational concepts relating to friendly financial services for the disabled and friendly treatment of people with dementia into the digital learning materials of our treating customers fairly program. In 2020, more than 2,200 home office employees have completed such training. Elsewhere, we also offer education and training sessions for our Board of Directors, senior-level management, and department managers and representatives. Meanwhile, we held two on-site classes on treating customers fairly with total attendance of 240 people. The only company scoring in the top 20% of life insurance companies for two consecutive years in the Principles of Treating Customers Fairly in the Financial Service Industry review.
    • Treating Customers Fairly Committee
      China Life’s Treating Customers Fairly Committee, which consists of senior managers from relevant departments, convenes quarterly and reports to the Board of Directors on actions, plans, and achievements related to customer treatment. The Board leads supervision and optimization of the committee.

    Considerate Methods of Treating Customers Fairly

    Health and Medical Care Services

    • Coronavirus Claims Measures
      During the coronavirus pandemic, policyholders can submit claims applications via fax. To uphold the rights and interests of policyholders and improve service quality, patients who stayed in isolation wards due to coronavirus qualified qualified for payments in line with intensive care stays. In 2020, 34 beneficiaries used this policy to receive total payments of NT$3,231,710. Also, in recognition of the contributions made by front-line medical workers, China Life offered special consolation payments to health care workers who are not only China Life’s policyholders but contracted coronavirus at a medical institution while carrying out disease prevention duties or treating patients.

    • Second Medical Opinion
      China Life has a long-term cooperative arrangement with the renowned Koo Foundation Sun Yat-Sen Cancer Center. Policyholders who are suspected of having cancer are qualified for second opinion referrals as well as information on the disease’s cause and treatment methods. Additionally, depending on place of residence, we provide transportation subsidies to ease financial burdens.

    • Pre-paid Hospitalization Payments
      In the past, when policyholders applied for medical treatment claims, the full process was handled after the treatment. Following discharge and the completion of treatment, the policyholder would ask the hospital for his or her medical records and receipt then apply for claims. Hospital fees, however, may be collected from the policyholder during the course of treatment. In the interest of meeting our obligations as an insurer to protect policyholders, we developed a pre-paid payment system for hospitalizations. Policyholders who are hospitalized with a disease or an accidental injury and who meet certain conditions can apply for payment upon being admitted for treatment. After receiving an application, China Life dispatches a staff member to the hospital to check on the policyholder and collect his or her documents. Pre-paid payments of up to NT$60,000 are offered after the submission for review is approved by the Company. In 2020, seven policyholders used this service and received a total NT$201,800.

    Care for Disadvantaged Seniors

    • Friendly Care for People with Dementia
      We cooperated with the Taiwan Alzheimer Disease Association to jointly manufacture “We Can Help” promotional materials that urge the general public to heed dementia-related problems and provide dementia prevention and care information. At the same time, we have built a webpage dedicated to dementia prevention and health on our corporate website to disseminate relevant information and contribute towards a dementia friendly society. In 2020, all of our staff completed a series of online classes on how to support customers with dementia, and all of our district offices joined the Taiwan Alzheimer Disease Association’s dementia map plan. These efforts made us the first dementia friendly insurance company.

    • Care Counters
      To provide better and faster service to senior citizens and people with poor mobility, we set up care counters at service centers in Taipei, Taoyuan-Hsinchu, Taichung, Chiayi, Tainan, and Kaohsiung. Specially trained counter-staff are available to provide priority service to elderlies, people with mobility issues, or other policyholders in need of extra assistance.

    • House Visits
      China Life continues to offer caring measures for disadvantaged groups, such as people with visual or hearing impairments, physical disabilities, or mobility problems, as well as seniors aged 65 years or older. This includes house visits for claims applications and delivery and collection of documentation. When applying for a claim, customers can choose to have payments transferred to their bank account or have a check delivered to their home by members of our staff.

    • Improved Website Accessibility for Better Financial Services
      China Life’s corporate website is compatible with multiple browsers and was specially designed to offer greater access to people with disabilities. A friendly financial services section discloses needed information, and an easy-to-use interface lets people with disabilities and those who struggle to operate a mouse enjoy the same browsing experience and procedures as general users, using their smartphones or computers to conveniently obtain comprehensive information on products and protections.

    • Duofu Care & Service Co., Ltd. that provides travel packages and pickup services
      In 2020, we hired DuoFu Holidays to help our sales agents plan an accessible travel experience for elderly policyholders and policyholders with disabilities (cerebral palsy, physical disabilities or dementia), together with their family members. The event aimed to raise awareness of caring for the disabled and the elderly as well as the importance of heeding the physical and mental health of caregivers.

    Emergency Disaster Relief Services

    • Expedited Counter Claims
      China Life empathizes with the anxiety of policyholders who are affected by an emergency or a disaster. To help them overcome these challenging periods, we have launched fast claim services at service counters in six customer service centers across Taiwan. Policyholders who meet certain conditions can complete a claim review in 30 minutes at the earliest and receive their payment on the same day. This service, which is four times faster than our normal claims process, demonstrates the value of insurance towards people who are in distress. It makes claims more than just a number; they are a form of care that is there for policyholders in times of need. In 2020, a total of 21 banks joined China Life’s Enhanced Automated Clearing House (eACH) system for fast payment transfers. Using eACH, claims payments for policyholders can be finished in as little as 30 seconds.

    • Emergency Disaster Relief
      In 2020, China Life launched response measures to five major disasters: lightning strikes, landfall by Typhoon Mekkhala, a fire accident in Partyworld’s outlet located at Linsen Road, a UH-60 Black Hawk military chopper accident, and the coronavirus pandemic.

    Diverse Service Channels

    • E-Service
      China Life provides policyholders with an uninterrupted e-service platform. Customers can quickly check their policy info, make adjustments, or pay premiums anytime and anywhere. Besides eliminating the trouble of filling out paper forms, users reduce time and cut GHG emissions produced during mail delivery or transportation to and from the insurance office. In 2020, we improved and accelerated member registration procedures to optimize the policyholders’ user experience.

    • Policyholder E-Newsletter
      China Life sends monthly e-newsletters to provide information covering five main areas: policyholder news, hot topics, financial tips, health & you, and love & sharing. The newsletters give policyholders an opportunity to obtain health-related information in an efficient, environmentally friendly way.

    • 080 Product Audio Introductions
      China Life provides audio introductions for our insurance products and builds service options in our telephone customer service center to arrange for specialized staff members to assist with product explanations and insurance applications. In 2020, the service center received more than 1,500 calls to hear product audio introductions and handled 188 consultations. Policyholders also asked 1,275 FAQs online. China Life will further analyze related data to plan and develop a more intelligent customer service system, which will leave a favorable impression among customers and strengthen our connections with policyholders.

    • Travel Insurance Message and Appointment Services
      China Life pioneered a message reply system for making appointments to apply for travel insurance products. The system makes “Peace of Mind” travel insurance application by phone more convenient by expanding the range of reservation channels. The 2020 coronavirus pandemic caused a steep decline in the number of reserved policy applications. Recognizing that there would be an increase in domestic tourism, China Life shifted focus to domestic travel insurance. We actively sent messages to customers and invited them to apply for insurance protection in advance when making travel plans

    • Plan to Payout Outstanding Payments
      For the unsuccessful payments, we actively call policyholders to launch launch the unpaid benefit payment procedure. In the spirit of treating customers fairly and to improve the customer experience, we carry out internal cross-departmental reviews and notifications in an effort to uphold the rights and interests of beneficiaries. In 2020, we completed 2,533 such calls and completed payments of close to NT$46 million.

    • Bilingual Service
      We are one of the first insurers in Taiwan to provide English documents, services, product explanations, and policies for interest-sensitive annuity products. This initiative is a response to the government’s Blueprint for Developing Taiwan Into a Bilingual Nation by 2030, as well as our Company objectives to improve online policy application service quality and implement our core corporate culture of treating customers fairly. In the future, we will continue to provide product explanations flyers in English and English service for application procedures and other products. People from other cultures and countries will then have more opportunities to experience our thoughtful and caring online insurance application services.

    Listening to Our Policyholders with Our Hearts

    Counter Service

    To measure customer satisfaction, staff members ask customers at general service counters and care counters to rate their experience from 1 to 5 (5 being the highest) after the policyholders visited the “general service counter” and “care counter.” Their responses serve as a reference for further improvements. In the future, we will continually aim to maintain satisfaction ratings of 4 or above. The customer satisfaction rate was 4 or higher in 99.9% of interactions at general service counters, and the customer satisfaction rate was 4 or higher at 100% of interactions at care counters

    Call Centers

    • 92% of customer service agents possess basic insurance certifications

    • 45% of customer service agents possess Life Office Management Association (LOMA) certification

    Customer service representatives at call centers need comprehensive professional skills and certifications. To ensure customer rights and interests, when customers place a call to inquire about policy-related issues, we first confirm their identity before providing assistance. To enhance customer service, in 2020 we upgraded our customer service system to eVoice, which has added functions that make it easier for service agents to check information.

    To strengthen service quality, China Life continues to conduct customer satisfaction telephone surveys. The surveys inquire about service attitude, handling methods, and overall performance to quickly assess customer experiences, problem resolution, and overall service. In 2020, we scored an average of 4 (out of 5) or higher on 99.16% of surveys.

    In 2021, an automated customer satisfaction survey system will replace staff dialing from customer service centers. This will increase the rate of valid surveys, implement a routine satisfaction survey mechanism, provide customers with a feedback channel, and confirm quality control and management results, resulting in enhanced collection of customer impressions and opinions.

    Service Ambassador Selection Demonstrates Our Commitment to Caring Service

    In order to raise the sense of honor among the frontline customer representatives, for two consecutive years we held a election to choose service ambassadors. We urged staff members to provide exemplary and heartwarming services, in an attempt to create model employees who improve our corporate image and customer satisfaction. In 2020, we had 26 service ambassadors, 10 of whom were honored during a pair of “Top 5” competitions that showed our appreciation for their contributions and highlighted the importance we place on service.

    Adoption of a Net Promoter Score Mechanism (NPS) to Uncover Core Customer Service Problems and Enhance the Customer Experience

    In order to build customer experience operation mechanisms, we drafted customer journey maps (CJM) with the assistance of professional consultants. The maps located points of contact between China Life and customers at each stage of service. Using quantitative and qualitative surveys, we determined areas where improvements should be prioritized then formulated implementation plans. We regularly review, track, and evaluate progress as we enhance both the customer experience and our net promoter score (NPS). Our goal is to strengthen both customer loyalty and sales growth.

    Customer Complaints and Complaint Handling

    China Life prudently receives a wide range of opinions and suggestions while offering diverse customer complaint channels and comprehensive complaint management processes. We hold weekly cross-departmental meetings to handle complaints while supervisors discuss how to fix problems and designate steps to prevent those problems from happening again. In 2020, all relevant departments successfully reached their targets for complaint settlement rates, settlement volume, and handling speeds.

    Customer Complaint Handling Procedures