Medical insurance is the best-known insurance product, with a recognition rate of 35.8 percent, according to a "consumers and insurance" survey conducted by the China National Consumers Association in September and October 2000.

The polling was done in Harbin, Nanjing, Zhengzhou, Wuhan, Xi'an and Lanzhou, reported the Zhongguo Jingji Shibao (China Economic Times) on Dec. 1.

The recognition rate for other types of insurance was significantly lower, with family-property insurance having a 4.36 percent recognition rate, education 2.68 percent, and insurance for children 4.63 percent.

The five most needed types of insurance are medical insurance (57.3 percent), pension insurance (39.2 percent), accidental injury insurance (32.1 percent), life insurance (25.3 percent) and various kinds of insurance for children (21.6 percent), said those polled.

In the six cities, 36 percent of consumers have bought some type of insurance and 64 percent have not. The purchase rate in Zhengzhou is the highest, at 43.4 percent, while that in Harbin is the lowest, at 29.8 percent.

Among those surveyed, 29.9 percent intend to buy insurance within two years and 70.1 percent don't. Among those who intend to buy insurance, 13.7 percent plan to buy in 2000, 35.1 percent in 2001, and 4.7 percent after 2003. The survey also showed that the proportion of insurance bought for children and for middle-age citizens is quite high, said the article.

When asked about the top concern when buying insurance, 51.8 percent answered it is the "strength and prestige of the insurance company." Less than 10 percent cited other factors such as the "quality of insurance agents," "whether it is convenient to be insured and seek compensation" and "the premium and returns."

Insurance firms and types of insurance

The survey shows that medical insurance has the highest ownership rate, and most policyholders are either "satisfied" or "fairly satisfied" with their insurance policies. According to the survey, the most urgent tasks for insurance firms are to improve service, simplify procedures and build a good reputation.

When asked what types of insurance they have, 36.7 percent of policyholders answered medical insurance. Next are pension insurance (33.9 percent), life insurance (29.3 percent), children's insurance (26 percent), personal accident insurance (24.6 percent), education insurance (12.6 percent), insurance of household property (9.5 percent) investment insurance (2 percent), and other kinds (2.5 percent).

According to the survey, 16.4 percent are satisfied with their insurance and 72 percent are basically satisfied. About 7.4 percent are unsatisfied and 3.4 percent are very unsatisfied, the article said.

The survey shows that 35.9 percent are satisfied with service. When it comes to convenient access to service centers, the rate is as high as 44.2 percent. The satisfaction rate is low for the execution of contracts and pledges, and for the attitude and way of dealing with compensation, at 22.3 percent and 21.2 percent, respectively.

Among those who have not bought any insurance and won't buy any in the next two years, the majority (39.1 percent) cited "complicated procedures" as a deterrent. In addition, 24 percent cited "lack of confidence in insurance companies" and 19.6 percent, "lack of understanding about insurance."

The survey shows that the recognition rate of insurance for household property, education insurance and children's insurance is quite low, and the demand for medical and pension insurance is high.

Five major Chinese insurance firms enjoy a remarkably higher recognition rate than others. They are the People's Insurance Co. of China Group, China Pingan Insurance Co., China Pacific Insurance Co., China Life Insurance Co. and Xinhua Life Insurance Co. The combined recognition rate of the five reaches 92.76 percent, while that for other companies is merely 7.24 percent.