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Report Description

The Board of Directors of this Company and all its directors warrant that this Report is

free of any fraud, misleading representation or major omission, and that they shall be

jointly and severally liable for the truthfulness, accuracy and completeness of the

contents hereof.

Period Scope: From January 2015 to December 2015; some information is updated to

the latest actual and feasible date prior to the release of this Report.

Organization Scope: China Life Insurance Company Limited and its branch

organizations.

Release Cycle: Once a year and it will be simultaneously released with the Company’s

annual report. The previous report was released in March 2015.

Compilation Basis: It follows the guidelines of Shanghai Stock Exchange for preparing

the Report on Corporate Fulfillment of Social Responsibility and the “Guiding Opinions

of CIRC on Fulfillment of Corporate Social Responsibility by the Insurance Industry”,

and refers to the Sustainability Reporting Guidelines, Version G3.1 released by Global

Reporting Initiative (GRI).

Related Contents: Refer to the Company’s annual report and internal control evaluation

report simultaneously released.

Information Source: The Company’s internal statistics and public reporting.

Access to Report: Shanghai Stock Exchange www.sse.com.cn

China Life Insurance Company Limited www.e-chinalife.com

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Table of Contents

Message from the Chairman ...................................................................................................... 5

Company Profile ......................................................................................................................... 9

Social Responsibility Strategy and Management ................................................................... 12

Part I Shareholder Responsibility ........................................................................................ 15

I. Realizing Assets Accretion and Steady Return on Investment .............................. 15

II. Continuously Upgrading the Level of Corporate Governance .............................. 16

III. Constantly Reinforcing Internal Control and Risk Management .......................... 18

(I) Pushing Ahead the Construction of Risk Management System ...................... 18

(II) Strengthening Compliance and Operation Management ............................... 18

(III) Building up the Internal Control Awareness of All Employees.................... 19

(IV) Doing Well in Anti-Money Laundering ....................................................... 19

(V) Laying Emphasis on Combating Corruption and Upholding Integrity ......... 20

(VI) Implementing Effective Supervision over Internal Audit ............................ 21

Part II Client Responsibility ................................................................................................. 21

I. Improving Service Quality and Efficiency ................................................................. 21

(I) Enriching Value-Added Services and Increasing Policy Value ....................... 21

(II) Claim Settlement and Payment ..................................................................... 22

(III) Protection of Consumers’ Rights and Interests ............................................ 26

(IV) Optimizing High-End Services and Improving Client Experience .............. 28

(V) Building of Service Abilities ......................................................................... 29

II. Carrying Out Business in Good Faith ....................................................................... 33

III. Carrying on Product Innovation Based on Client Demand ...................................... 34

IV. Electronic Services ................................................................................................... 36

V. Key Performance Indicators for Client Responsibility .............................................. 37

Part III Employee Responsibility ............................................................................................ 38

I. Protecting Employees’ Rights and Interests ............................................................... 38

(I) Remuneration and Benefit .............................................................................. 38

(II) Health and Safety .......................................................................................... 39

(III) Protecting Employees’ Rights and Interests ................................................. 40

II. Caring for Employees’ Growth ................................................................................. 41

(I) Training ........................................................................................................... 41

(II) Work Shift and Exchange .............................................................................. 45

(III) Diversified Promotion Channels .................................................................. 46

III. Fostering Harmonious Working Atmosphere ........................................................... 47

(I) Improving the Sites of Employee Activities and Carrying out Colorful Cultural

and Sports Activities ............................................................................................... 47

(II) Enriching the Helping Activities of the Company and Passing on the Warmth of

the Collective .......................................................................................................... 49

IV. Key Indicators for Employee Responsibility ........................................................... 50

Part IV Partner and Industry Responsibility ......................................................................... 52

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I. Expanding Insurance Business and Serving the Needs of People’s Livelihood ......... 52

(I) Policy-Based Medical Handling Business ...................................................... 52

(II) Major Disease Insurance Business for Urban and Rural Residents............... 53

(III) Petty Insurance ............................................................................................. 54

(IV) Accident Insurance Business for Family Planning Households ................... 54

(V) Accident Insurance for Old People ................................................................ 55

II. Providing Insurance Protection and Career Development Opportunities for

University-Graduate Village Officials ............................................................................... 55

III. Responsible Investment ........................................................................................... 57

IV. Suppliers ................................................................................................................... 58

V. Salespersons and Intermediaries ................................................................................ 59

VI. Win-Win Strategic Cooperative Partnership ............................................................ 59

VII. Supporting Research and Cooperation in the Industry ........................................... 60

Part V Environment and Society ............................................................................................. 61

I. Environmental Protection ........................................................................................... 61

II. Serving Community .................................................................................................. 62

III. Public-Good Donations ............................................................................................ 64

(I) Assisting and Bringing up Orphans in All-Directional Manner ...................... 65

(II) Supporting Educational Cause ...................................................................... 67

(III) Assisting Poverty-Stricken Areas and the Vulnerable Groups ..................... 69

(IV) Showing Loving Care for Families Having Lost Their Single Child........... 70

IV. Volunteer Activities .................................................................................................. 71

GRI Index .................................................................................................................................. 73

Feedback on the Report ............................................................................................................ 78

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Message from the Chairman

“Fulfilling ourselves to benefit others and fulfilling others’ wishes to achieve our

success”. In 2015, under the guidance of the corporate culture and values of the “two

fulfillments”, China Life implemented the guideline of “seizing opportunities, taking

initiative, progressing in stability, and achieving innovative development”, forged ahead,

and achieved speedy, coordinated and balanced development thanks to the high

efficiency brought by our scale and structure. We joined hands with our stakeholders in

bringing the 12th

Five-Year Plan of China Life to a satisfactory end.

The 12th

Five-Year Plan is a period when we responded successfully to the complicated

situation by uniting as one from top down and working hard; a period when we summed

up the experience in following the operational norms of life insurance and using the idea

of “Five Focuses” to seek consensus and promote the adjustment and transition of the

Company; a period when the Company witnessed continuous enhancement of its

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comprehensive strength and social influence, implemented the innovation-driven

development strategy, accumulated strong momentum and laid a solid foundation for

building a first-rate life insurance company of the world; a period when the Company

worked harmoniously with its stakeholders, continuously improved the mode of

sustainable development that ensures both its own growth and its social contributions,

thereby winning more and more extensive respect and recognition.

Over the past five years, we achieved a marked increase in the comprehensive

strength of the Company and brought satisfactory returns to the investors by

overcoming difficulties and working hard to expand business. The sales team

members of the Company for personal insurance channels reached 979,000, 1.4 times

the size in 2010. The Company has continuously increased its total assets so that it is

now the only insurance company with more than CNY2 trillion worth of total assets in

China. Over the past five years, we realized over CNY100 billion of net profits in

accumulation and a two-digit compound annual growth rate in shareholders’ equity. We

have always maintained the solvency above solvency adequacy class II prescribed by

CIRC and kept the corporate credit rating at the same level as the sovereign rating of

China. The Company leads all listed life insurance companies in the world in terms of

market value, and its business management is highly recognized by the capital market.

In 2015, the Company won the title “China Listed Companies Most Respected by

Investors” and “Hong Kong Corporate Governance Excellence Award”.

Over the past five years, we blazed new trails, forged ahead, made remarkable

achievements in the innovation-driven development and provided clients with

constantly enhancing consumption experience. We explored the establishment of an

innovative management mechanism and client service mechanism and achieved notable

results in product innovation by developing, upgrading and transforming some 270

products, including 22 products or portfolio programs that won 28 awards in the

insurance industry, with the products such as cancer insurance, “Xin Ru Yi” and “Xin

Fu Nian” leading the market. We vigorously promoted the construction of a

“technology-oriented China Life”, commissioned Shanghai Data Center that reaches the

highest international standard (T4 standard), effectuated the flattening of our nationwide

network and completed the construction of three operation platforms for preservation,

claim settlement, collection of premium/payment, and made breakthrough in the

application of mobile Internet represented by e-insurance, e-account, e-shop, Cloud

Assistant, Cloud Desktop and Cloud Signs. In 2015, the Company went into

cooperation with the International SOS to launch our global emergency assistance

services and saw further enhancement of service efficiency and quality. The findings of

client survey showed that the overall client satisfaction and loyalty of the Company

registered a year-on-year rise of 1.2 and 4.8 percentage points respectively.

Over the past five years, we have remained people-oriented, placed emphasis on

the grassroots and continuously improved our HR system, thus creating an

excellent growth environment for the employees. We have set up an education and

training system with the characteristics of China Life and completed and put into

operation the research institutes in Shanghai and Chengdu. Each year, we launched

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nearly 50,000 training classes of all types on a corporate-wide basis, with the number of

participants reaching more than 4.5 million person-times. The Company has achieved

the transition “from sporadic to systematic” education and training and promoted the

quality enhancement of its workforce. We created job rotation and exchange

opportunities for the employees, provided them with diversified promotion passages,

carried out a wide range of cultural and sports activities and launched the initiatives of

helping needy employees to form a warm and harmonious team atmosphere. Reflecting

the continuous efforts we made to strengthen the grassroots and implement the policy of

streamlining administration, decentralizing power and giving priority to the grassroots,

we have cumulatively recruited 10,447 university graduates and university-graduate

village officials into the companies at or below prefecture level, completed 360 business

and office housing projects for the grassroots organizations, renovated or improved

2,881 workplaces and set up 290 up-to-standard staff homes. In 2015, the Company

held the first session of its Second Congress of Employees in Beijing to encourage the

employees to take part in democratic management and safeguard their legitimate rights

and interests, thereby basically forming a situation of healthy climate and a team with

soaring morale.

Over the past five years, we served the general economic and social development

and contributed our bit to the improvement of people’s livelihood. In the three years

since the debut of critical illness insurance, the Company has served nearly 400 million

urban and rural residents. Meanwhile, we have cumulatively provided over 300 items of

transactional services for more than 50 million people and realized the wide coverage of

inclusive business, e.g. petty insurance. We filled the gaps in the insurance history of

China through provision of insurance products designed for servicemen, armed police

and police officers and offered insurance products for special groups of the population,

such as the old and members in families implementing birth control, benefitting over 10

million people. We went all out in providing claim settlement and follow-up services to

address major natural disasters and emergencies, such as Yushu earthquake, Zhouqu

mudslide and Tianjin Port explosion, and actively fulfill our insurance responsibility

and humanitarian duties. The Company enthusiastically participated in public welfare

activities and cumulatively donated more than CNY180 million through China Life

Charity Foundation, which was used to support some 1000 orphans and aid the

construction of 129 schools and public health centers (stations). In 2015, the Company

donated an additional CNY36 million to the related authorities through China Life

Charity Foundation, which was used for a number of poverty alleviation projects,

including the project of supporting orphans from the earthquakes that hit Wenchuan and

Yushu, winning favorable comments from all walks of life.

The 13th

Five-Year Plan period is an important opportunity period for China Life to

speed up its development. Under the economic new normal, the insurance industry is

faced with an exceptional opportunity. We will set the right strategic direction, fully

strengthen the building of the Party, persist in focusing on transformation and upgrading

as the mainline, rely on innovation-driven development as the general strategy, follow

the business guideline of “stressing value, strengthening the workforce, optimizing

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structure, stabilizing growth, and preventing risks”, commit ourselves to providing

quality China Life services to the general public, and strive to build a first-rate life

insurance company in the world that benefits its shareholders, satisfies its clients, makes

its employees happy, and pursues win-win outcome with its partners and stakeholders!

Chairman Yang Mingsheng

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Company Profile

China Life Insurance Company Limited (the “Company” or “China Life”) is the

largest life insurance company in China. It is headquartered in Beijing and has a

registered capital of CNY28.265 billion. The Company was listed in New York and

Hong Kong respectively on December 17 and 18, 2003 and was listed on the domestic

A shares market on January 9, 2007. As of December 31, 2015, China Life Insurance

Company Limited and its subsidiaries have total assets of CNY2,448.315 billion,

ranking No.1 in the domestic life insurance industry. The Company has won the trust

from the widest range of customers for its long history, solid financial strength,

industry-leading competitiveness and worldwide reputable brand. It has always

dominated in the domestic life insurance market.

The Company provides both individuals and groups with life insurance, annuity, health

and accident insurance products which cover survival, pension, disease, medical care,

death and disability, and comprehensively meets the needs for insurance protection,

investment and wealth management in the field of personal insurance. As at the end of

this Report period, China Life had 20,936 branches and subsidiaries, 97,607 employees

and 979,000 salespersons nationwide, and had about 216 million effective long-term

individual and group life insurance policies, annuity contracts and long-term health

insurance policies. The Company also provides policies and services of accident

insurance and short-term health insurance for individuals and groups.

The Headquarters Building

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The honors we won in 2015 mainly include:

Appraisal Event Recognition and Honor Awarding Institution

Forbes “Global 2000

Listed Companies” list

2015

China Life ranks No.37 Forbes magazine

Fortune Chinese Version

“Chinese Top 500 List

2015”

China Life ranks No.13 Fortune

Chinese Version

Selection for “2015 Hong

Kong Corporate

Governance Excellence

Award”

Hong Kong Corporate

Governance Excellence Award

The Chamber of Hong Kong Listed

Companies (CHKLC) and the

Center for Corporate Governance

and Financial Policy (CCGFP) of

Hong Kong Baptist University

The 13th China Financial

Billboard 2015

The Most Trusted Life

Insurance Company in 2015

www.hexun.com and China Stock

Exchange Executive Council

(SEEC)

The Gold Medal List of

Chinese Financial

Institutions 2015

Golden Dragon Award 2015:

Best Listed Insurance Company

of the Year

Financial Times

The 2nd Edition Value

Rankings of Chinese

Listed Companies 2015

Chinese Listed Company of the

Year Award 2015

www.sina.com,

www.xinhuanet.com, www.ce.cn,

China Reforms Daily, and Value

Line magazine

The 6th “Golden Tripod

Award” by National

Business Daily

Golden Tripod Award 2015:

Insurance Company with the

Strongest Comprehensive

Strength of the Year

National Business Daily

BrandZ Top 100 Most

Valuable Global Brands

2015

China Life ranks No.62 Millward Brown

2015 Rankings of Asian

Insurance Industry

Competitiveness

Asian Life Insurance Company

of the Year 2015

21st Century Business Herald,

Finance Research Center of 21st

Century Research Institute

2015 China Listed

Companies Most

Respected by Investors

2015 China Top 100 Listed

Companies Most Respected by

Investors

China Association for Public

Companies (CAPCO), China

Securities Investors Protection

Fund (SIPF), Shanghai Stock

Exchange, Shenzhen Stock

Exchange, Asset Management

Association of China (AMAC) and

Securities Times

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2015 Global Contact

Center Awards Program

Global Call Center of the Year

Award 2015

The International Customer

Management Institute (ICMI)

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Social Responsibility Strategy and Management

Our social responsibility concept is in the same strain with our “double fulfilling”

corporate culture, and the core concept of “fulfilling ourselves to benefit others and

fulfilling others’ wishes to achieve our success” contains the following six fundamental

relationships:

“Double fulfilling” relationship between enterprise and clients: mutual trust and

common achievement.

“Double fulfilling” relationship between enterprise and employees and salespersons:

mutual dependence and growing together.

“Double fulfilling” relationship between enterprise and shareholders: interdependence

and common development.

“Double fulfilling” relationship between enterprise and industry: mutual reliance and

common prosperity.

“Double fulfilling” relationship between enterprise and society: mutual support and

common progress.

“Double fulfilling” relationship between enterprise and nation: mutual support and

together making dream come true.

To truly incorporate our social responsibility concept and strategy into our operation

management system, we continued to improve “China Life Social Responsibility

Indicators Management System” in 2015 and incorporated certain core management

indicators into the Company’s performance assessment system.

Case: China Life Social Responsibility Indicators Management System

To genuinely incorporate our social responsibility concept and strategy into the Company’s

operation management system, in 2014, we cooperated with the professional social

responsibility research and consulting institutions, completed the “social responsibility

management improvement” program, and introduced the China Life Social Responsibility

Indicator Management System consisting of 9 level-one indicators, 35 level-two indicators and

119 level-three indicators. We designated special management departments, clarified their

respective management responsibilities, and proposed improvement plans for indicators

showing weak performance.

We are highly concerned about the expectations of our stakeholders, constantly refine

our communication mechanism to increase stakeholders’ involvement, and actively

respond to the stakeholders and improve our work to live up to their expectations.

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Stakeholders Stakeholders’

Expectations

Ways of

Communication with

Stakeholders

Measures for Response to

Stakeholders’ Expectations

State

Abide by various

laws and regulations

and related policies;

increase employment

opportunities; pay

taxes according to

law; and achieve

steady development

Participate in relevant

meetings and forums;

study relevant policies

and laws and regulations;

provide reporting

documents.

Respond to national

economic and financial

policies; support public

welfare and charity

activities; pay taxes

according to law; and

actively create employment

opportunities.

Regulatory

Body

Operate in

compliance with rules

and regulations;

guard against risks;

safeguard fair

competition

environment; make

positive contributions

to the overall

development of the

industry.

Participate in various

meetings and research

projects of regulatory

bodies; provide reporting

documents; furnish

special reports; support

regulatory bodies to

investigate and carry out

stakeholders survey.

Operate according to law and

in good faith; submit

information in a timely and

accurate manner; render

support to and cooperate

with regulatory bodies;

actively participate in

formulating industry

standards and norms.

Shareholder

Constantly improve

the Company’s value;

achieve reasonable

earnings; disclosure

information in a

timely, accurate and

comprehensive

manner.

Communicate via

shareholders’ meetings,

regular reports,

roadshows, investors’

visits, news conferences,

analyst meetings, media

reports, and “Global

Open Day” event;

arrange investors and

analysts to conduct

investigation at our

branch organizations and

carry out stakeholders

survey.

Implement strict risk control;

constantly improve corporate

governance structure and

upgrade governance level;

constantly enhance investor

relations management; and

constantly increase

transparency in information

disclosure.

Client

Good-faith and

high-quality services;

abundant insurance

products; and

protection of the

clients’ rights and

interests.

Return visits to clients;

short messages via

“China Life Messenger”;

unique client service

activities; client

satisfaction survey;

product explanation

meetings; and handling of

Constantly improve service

quality and efficiency; push

ahead continuous product

innovation; and raise the

level of client satisfaction.

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clients’ complaints.

Employee

Stable employment;

good remuneration

and welfare; active

communication

mechanism; and

sound development

prospect.

Employees’ congress;

trade union organization;

employees’ symposium;

President’s mailbox; and

employees satisfaction

survey.

Pay attention to employees’

health and safety; hold

various entertainment and

sports activities; protect the

trade union’s rights and

interests in carrying out

democratic management;

provide job opportunities and

skills training; establish the

mechanism for work shift

and two-way choice of posts;

and establish a fair

promotion system and

incentive mechanism.

Community

Effectively utilize

community resources;

promote local

economic

development;

participate in

community

public-good

activities; and help

vulnerable groups.

Hold the “China Life

Lecture Hall” lectures;

publicize financial

knowledge; provide

community services by

the Company’s

volunteers; and visit the

schools constructed with

China Life’s donations.

Be concerned about and

support local economic and

community development;

unfold mutual benefit

cooperation with local

governments and

communities; conduct

financial education;

participate in volunteer

activities; and carry out

charity donations through

China Life Charity

Foundation.

Partner

Good faith and

mutual benefit,

cooperation and

win-win results.

Conduct informal

day-to-day

communication; enter

into cooperation

agreements; hold

salespersons’ morning

meetings, symposiums,

special investigations and

lectures; and conduct

stakeholders survey.

Share resources and

complement each other with

their respective advantages;

take innovative steps in the

field and modes of

cooperation; maintain good

cooperative relationship; and

care for the salespersons’

physical and psychological

health and growth.

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Part I Shareholder Responsibility

I. Realizing Assets Accretion and Steady Return on Investment

Our Company has adhered to the corporate cultural concept of “fulfilling ourselves to

benefit others and fulfilling others’ wishes to achieve our success”, actively explored the

road of scientific development with the characteristics of China Life, vigorously

implemented the innovation-driven development strategy, and made efforts to realize

value preservation and accretion of State-owned assets and maximize shareholders’

interests.

In 2015, faced with complex business environment and fierce competition in the

financial and insurance markets, under the guidance of the strategic direction of the

Group Company, i.e. “seizing opportunities, taking initiative, progressing in stability,

achieving innovative development”, we vigorously carried out the “Five Focuses”

development strategy and followed the business guideline of “stressing value,

strengthening the workforce, optimizing structure, stabilizing growth, preventing risks”.

We made steady progress in business development, notably optimized the business

structure, remarkably increased the value of new business operations, and maintained

our leading position in the life insurance market.

During this Report period, the operating income of our Company was CNY511.367

billion, a year-on-year growth of 14.7%; as at the end of the Report period, our total

assets reached CNY2448.315 billion, an increase of 9.0% from the end of 2014. During

the Report period, the net profits attributable to the shareholders of the parent company

were CNY34.699 billion, a year-on-year growth of 7.7%; and the EPS (basic and

diluted) was CNY1.22, a year-on-year growth of 7.1%.

In 2015, our Company earned CNY362.301 billion of insurance premiums, a

year-on-year growth of 9.8%, and had a market share of 23%.

In 2015, our Company distributed a total dividend of CNY11.871 billion, providing the

investors with continuous return on investment.

In 2015, faced with the complex and volatile domestic and foreign economic situation

and environment of the capital market, the Company responded actively, focused on

strengthening the capability of asset allocation, continuously promoted the

diversification of portfolio and avenues. In investment management, a management

architecture has gradually taken shape, which is based on the asset allocation that

reflects the core value and operation characteristics of life insurance, relies on

diversified and market-oriented investment means, features the active allocation and

coordinated deployment by clients as well as the organization and implementation by

investment managers. In terms of investment portfolio, we have appropriately increased

the risk exposure of equity assets and intensified the allocation of alternative assets, e.g.

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other financial products and unlisted equities. Meanwhile, we promoted overseas

investment in all varieties and made breakthroughs both in the open market and the field

of alternative investment. As at the end of this Report period, the investment assets of

our Company reached CNY2,287.800 billion, an increase of 8.9% from the end of 2014.

During the Report period, our rate of return on net investment was 4.3% and the rate of

return on total investment was 6.24%.

Table for Main Financial Data in 2013-2015

Unit: CNY million

2013 2014 2015

Operating

income 423,613 445,773 511,367

Total assets 1,972,941 2,246,567 2,448,315

Investment assets 1,848,744 2,100,954 2,287,800

Net profits

attributable to

shareholders of

parent company

24,765 32,211 34,699

EPS (basic and

diluted) (CNY) 0.88 1.14 1.22

II. Continuously Upgrading the Level of Corporate Governance

As a company triple-listed in New York, Hong Kong and Shanghai, we have taken it as

our core goal to set up a corporate governance system featuring reasonable structure,

sound mechanism, rigid rules and efficient operation, constantly pushed ahead the

construction of corporate governance, strictly performed information disclosure

obligations, continuously increased corporate transparency, actively served the vast

number of investors, and thus shaped the corporate governance system with our own

unique characteristics. The Company’s corporate governance structure is as follows:

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In 2015, our Company conscientiously performed all the corporate governance

procedures in strict accordance with the requirements of relevant laws, regulations,

regulatory provisions and the articles of association and rules of procedure. The general

meeting of shareholders deliberated the reports of the Board of Directors and the Board

of Supervisors and the proposals such as profit distribution plan. The Company

arranged network voting to provide convenience for small and medium shareholders to

participate in the voting and effectively protected the rights and interests of shareholders,

particularly the small and medium ones. The Board of Directors operated efficiently and

made decisions scientifically, and its special committees performed important duties and

effectively played professional roles in the Company’s internal financial control and

audit, nomination and remuneration, strategy and investment, risk management and

other important aspects. The Board of Supervisors actively performed its powers and

duties. The supervisors attended the general meeting of shareholders and the meetings

of the Board of Supervisors, attended the meetings of the Board of Directors as

nonvoting delegates, and based on their division of labor, attended the meetings of the

special committees of the Board of Directors as nonvoting delegates and

conscientiously performed their function of supervision.

Our Company has strictly followed the regulatory provisions of the listing exchanges,

constantly enhanced the building of our information disclosure system, and conducted

training and learning with respect to regulatory rules, in particular revisions and updates

of such regulatory rules made from time to time, in order to ensure lawful disclosure of

information; continuously upgraded the quality and transparency of information

disclosure, pushed forward the innovation on regular reports, fully considered the

information needs of shareholders and investors, actively studied and improved the way

of disclosing core information, enriched and deepened the contents of disclosure, and

improved the readability of regular reports; and continuously strengthened the

communication with capital market and actively and prudently announced the

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Company’s business result forecast and other important matters to ensure that the

corporate information can be made available to the shareholders and investors in a

timely, accurate and complete manner.

Our Company has won social recognition for its efforts to continuously upgrade its

corporate governance practices, enhance the transparency of information disclosure and

constantly improve investor relations. It won “2015 China Top 100 Listed Companies

Most Respected by Investors” honors given by China Association for Public Companies

(CAPCO). In the “Hong Kong Corporate Governance Excellence Awards 2015” jointly

organized by the Chamber of Hong Kong Listed Companies (CHKLC) and the Center

for Corporate Governance and Financial Policy (CCGFP) of Hong Kong Baptist

University, China Life won the Hong Kong Corporate Governance Excellence Award in

the category for Hang Seng Index constituent companies and was the only H-share

insurance company gaining such honor.

III. Constantly Reinforcing Internal Control and Risk Management

As a large financial enterprise, the importance of steady development has already

surpassed the enterprise itself and become a big issue that has a bearing on the overall

situation of industrial and economic development. In 2015, the Company continued to

follow the regulatory requirements, kept close watch on our risk-bearing bottom line,

worked hard to strike a balance between capital, scale, risks and earnings. We combed

through the major business processes to screen out the potential risks existing in the

everyday business management of the Company, track and redress the prominent

problems and maintain the sustainable and healthy development of the Company.

(I) Pushing Ahead the Construction of Risk Management System

In light of the relevant regulatory requirements of CIRC regarding implementation of

China Risk Oriented Solvency System (C-ROSS), the Company amended its

“Regulations on Total Risk Management” and the “Measures for Management of Risk

Appetite System” to further strengthen its risk control and standardize its efforts in the

regard. We formulated the “Measures for Management of Investment Risks” to ensure

the safety, profitability and liquidity of our assets, standardize our investment behaviors,

and prevent and defuse investment risks.

In accordance with the “Internal Control --- Integrated Framework (2013)” issued by the

Committee of Sponsoring Organizations of the Treadway Commission (i.e. COSO), the

Company conducted benchmarking conversion of its internal control system and

aligned it with the international internal control framework through such steps as studies

and preparations, drafting of plans and benchmarking conversion to meet the regulatory

requirements of the place where it is listed.

(II) Strengthening Compliance and Operation Management

In 2015, the Company organized the special inspection of “two enhancements and two

containments” as required by CIRC. The inspection covered corporate governance,

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business operations, utilization of funds, financial management, solvency management,

protection of consumers’ rights and interests, security of information system and case

control. The Company drew up self-check plans and manuscripts and launched the

full-scale self-check involving the organizations at the four levels of the head office,

provinces, cities and counties. We made plans to carry out onsite supervision and

random inspection of lower-level companies, submitted inspection reports in a timely

manner and accepted onsite inspections by CIRC. Through this special inspection, the

companies at all levels thoroughly sorted out the business processes, made

comprehensive verification of the risks existing in their business management and

corrected the existing problems, thereby leading to further improvement in the

implementation of the Company’s systems.

Besides, we closely monitor and evaluate the laws and regulations promulgated from

time to time by the external regulatory authorities to provide support for the law-based

operations and management of the Company; launched multi-level and

multi-dimensional compliance publicity and training in light of the reality of the

Company to help and push the employees and marketing staff to build up a solid

business idea of operating according to law; held training classes in legal compliance

practice and the capability of responding to lawsuit for the legal personnel of the

branches, with focus on courses such as “Compliance Risk Management of Insurance

Companies and Analysis of the Key Points of Audit” and “A Look at the Corporate

Lawsuit Management Practice and Relevant Issues”, effectively improving the quality

of the legal compliance staff, including their understanding of relevant laws, regulations

and line system as well as their skills of responding to cases.

(III) Building up the Internal Control Awareness of All Employees

The Company amended its “2015 Implementation Manual of Internal Control”,

formulated the “Plan for Implementation of Internal Control Standard in 2015” and

continuously conducted the implementation of its internal control standard. We issued

the “Implementation Manual for Internal Control Standard” to every post; held the

publicity and training meetings thereof in the functional departments and grassroots

units. The Company organized trainings and tests on internal control knowledge and

incorporated such trainings and tests in the employees’ standard training system as a

compulsory requirement for all employees, thus causing all employees to consciously

get involved in the work of internal control management and enhance their awareness

about internal control. Additionally, the Company amended the “Measures for

Management of Internal Control” in light of the internal control management practices

in the recent three years to further meet the external regulatory requirements and

strengthen the internal applicability of the system.

(IV) Doing Well in Anti-Money Laundering

In 2015, our Company actively performed the anti-money laundering duties and

implemented the regulatory requirements. We revised the Measures for Management of

Anti-Money Laundering Work, the Measure for Risk Assessment of Laundering and

Terrorist Financing and Classified Management of Clients, and the Rules on

Management of Anti-Money Laundering Work in Relation to Identification of Client’s

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Identity and Preservation of Client’s Identity Data and Trading Records in an attempt to

further improve the Company’s internal control system for anti-money laundering

according to the regulatory requirements and our actual conditions. The Company made

endeavors to do a good job in identifying client’s identity, preserving their identity data

and trading records, classifying their money laundering risk grades, and reporting

large-amount and suspicious transactions. The Company actively conducted anti-money

laundering publicity activities via WeChat and other on-line means.

(V) Laying Emphasis on Combating Corruption and Upholding Integrity

In 2015, our Company widely conducted the education on combating corruption and

upholding integrity; strictly supervised the implementation of the CPC Central

Committee’s eight-point code to cut bureaucracy and maintain close ties with the people;

resolutely corrected the “four problematic leadership styles”; and conducted the ideal,

belief and tenet education themed “For the People, Be Practical and Upright”

corporate-wide among the Party members and cadres. We publicized positive models

and circulated notices of negative cases by leveraging the website of the Company and

the display boards in workplaces; invited experts to give lectures and organized visits to

the exemplary sites of incorruption to further intensify the consciousness about aim and

sense of discipline among Party members and cadres. We conducted supervision and

inspection, including all-round self-check and self-correction of the implementation of

the Eight Rules of the CPC Central Committee that cover office occupancy, business

cars, extravagance and waste, consumption using public funds, ensuring full reach

without any exceptions. We carried out examinations and inspection tours that centered

on the implementation of the Eight Rules, and upheld the requirements of “Four

Endeavors” with focus on improving the conduct of the Party and building a clean

government. The Company has included in the essential content of supervision and

inspection problems in the appointment or removal of cadres, intervention in centralized

procurement, consumption using public funds and other matters that have drawn strong

complaints from the general employees, broadened the channels and avenues of

discovering problems, went to the grassroots and field to discover problems, valued the

method of finding out about problems from the cadres who have resigned from leading

position, general employees and marketing staff, persisted in the thorough investigation

into the problems of “Four Malpractices” and violation of the Eight Rules, named the

wrongdoers in notices for all the problems verified through investigations, and used

pre-appointment talks and reminding talks to urge and alert those concerned in order to

put them always on guard.

The Discipline Inspection Committee of the Company intensified its corporate-wide

efforts to conduct direct investigations into major cases and important complaint letters,

provided more guidance to the branches in respect of the cases and complaint letters that

they were responsible for verifying, and standardized the management of cases and

complaint letters. It has persisted in the timely notification of typical cases as a means

of warning education, and adopted the approaches of case-by-case summing up and

regular analysis of cases. It has provided the related departments with suggestions on

improvement of systems and regulations in the form of supervisory proposal to stop up

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the loopholes in business management, and communicated the results of the cases

handled by the Company on a corporate-wide basis to remind the business units at all

levels to pay attention to similar risks and facilitating the normalized monitoring of the

risk points.

(VI) Implementing Effective Supervision over Internal Audit

In 2015, the internal audit department of the Company persisted in using risks as

orientation and value as objective, made innovations in methods, widened the scope of

audit and solidly carried out audits. In the year, it completed 11 audit projects. To make

full use of the audit results and explore and improve the working mechanism of the

Company for correcting the problems found in audit, we conducted the screening of

audit risks on a corporate-wide basis, strengthened the integrated risk control

mechanism featuring “investigation, correction and prevention”, enhanced the level of

risk prevention within the Company. While making a good job of the audit projects, we

cooperated with the National Audit Office in its audit by making active communications

and timely response, thus ensuring the smooth progress of the audit team from the

National Audit Office in its audit of the Company.

Part II Client Responsibility

I. Improving Service Quality and Efficiency

Our Company adheres to the professional and sincere client service concept and relies

on our nationwide urban and rural service network to commit ourselves to make our

clients enjoy high-quality, all-dimensional and in-depth considerate services.

(I) Enriching Value-Added Services and Increasing Policy Value

In 2007, our Company began to launch the “China Life 1+N” services, that is, multiple

services for each client, including multiple policy services and a variety of value-added

services. In 2015, the Company formally teamed up with the International SOS to

launch its global emergency assistance services, the scope of which effectively covers

70 million long-term policy holders, to provide the clients at various levels with

emergency rescue, health advice, VIP care and other value-added services of different

content at different levels. Meanwhile, we continued to conduct “China Life 1+N”

value-added services by centering on the five segments, i.e. “Good Health Helper”,

“China Life Lecture Hall”, “China Life Special Offer”, “China Life Messenger” and

“Unique Client Service Activities’.

1. Good Health Helper: Providing high-end clients with such services as health

experience, medical instruction, outpatient instruction and appointment register.

2. China Life Lecture Hall: Providing the clients with a series of lectures on health

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care, investment and wealth management, common sense of life, children education

and safety education.

3. China Life Special Offer: We have over 7,000 engaged service merchants

scattering all over the country, covering every aspect of life, including “medicine”,

“food”, “housing”, “travelling”, “playing” and “necessities”, to provide the clients

with a rich variety of discounts, rewards and comprehensive and considerate

services at special offers.

4. China Life Messenger: Sending various kinds of short messages on health care,

festival greetings, wealth management information and policy services to all the

clients to keep them informed of their policy status at all times.

5. Unique Client Service Activities: Providing the clients with unique client service

activities including June 16 China Life Client Festival, a series of client service

activities themed “Joining Hands with China Life with Focus on Filial Duties and

Benefaction”, and the fifth children’s drawing event.

(II) Claim Settlement and Payment

Centered on the clients and based on professional claim settlement, our Company

adheres to the principle of “active, timely, accurate and reasonable” claim settlement,

cares for the clients’ experience, aims to enrich the service contents and strives to

realize “convenient, rapid and transparent settlement”.

1. Further Pushing Ahead the Construction of Systems and Mechanisms to

Continuously Upgrade Service Quality of Claim Settlement

In 2015, the Company strictly honored its service commitment, kept on optimizing the

claim settlement process, strengthened the building of mechanism, improved and

innovated service initiatives, claim settlement commitments and emergency

compensation. Relying on information technology, we applied a new claim settlement

operation platform that fully supports the establishment of a smart claim settlement

mechanism, experimented with direct payment for claim settlement, further improved

the efficiency of claim settlement, increased service transparency and enhanced the

services for insurance policies. In 2015, the rate of claim settlement within 5 days

corporate-wide was 98.48%, a year-on-year increase of 4.48%. According to the client

satisfaction survey conducted by a third-party survey institution, our claim settlement

services have continuously received favorable comments. In 2015, China Life received

a mark of 8.7 in the clients’ satisfaction with the Company’s claim settlement services.

Measures for Upgrading Service Quality of Claim Settlement in 2015

Pushing ahead the

construction of

intelligent claim

Completed the all-round promotion of smart claim settlement. The

Company refined and summed up the simple manual operation of claim

settlement, formed the operation rule system, established the intelligent

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settlement

mechanism

mechanism and through the measures such as outsourcing of simple

operations, realized the whole-process automatic handling of the accepted

cases. By popularizing and operating such mechanism, we shortened the

time for claim settlement, harmonized the operation standards, enhanced

the settlement transparency, provided clients with the functions of

inquiring about and printing the details of adjustment, enabling the clients

to understand the detailed process of compensation.

Implementing

whole-process

smart adjustment

and unified the

regional adjustment

standard

Extensively collected the special liabilities for group insurance,

substantially optimized the contract setting functions of the system,

completed the setting of liabilities of 2,329 card-book combinations and

1.97 million group insurance policies on a corporate-wide basis, realizing

the smart adjustment and risk judgment of medical insurance

compensation cases in the order of magnitude of million. The

standardized smart adjustment rules led to unified adjustment standard

and enhanced service experience of clients.

Setting up the

outsourcing mode

of claim settlement

Corporate-wide, a total of 24 branches have outsourced the input of claim

settlement cases, with the number of cases reaching 636,400 in the year.

The “smart claim settlement + outsourcing” mode has been used to

effectively shorten the time for claim settlement.

Successfully

experimenting with

the direct payment

of claim settlement

On the basis of smart claim settlement, experiment was made to link up

internal and external data so that a client will receive compensation

immediately after being released from hospital. We provide the “4-no”

claim settlement service, meaning “no application, no presence at the

counter, no information and no wait”.

Completing the

development of

WeChat claim

settlement

Six major functions were created, i.e. individual case reporting, batch

reporting, inquiry about claim settlement, service consulting, operation

demonstration, instructions for claim settlement. Through a handheld

smart device, a client or salesperson can log onto the WeChat self-service

claim settlement for case reporting, upload the photographed information

and inquire about the progress of claim settlement. Through WeChat

claim settlement, the Company can quickly respond to the report and

application of clients and make rapid compensation for petty

compensation cases of low risks.

2. Promoting Mobile Claim Settlement to Meet the Demand of Rural Consumers

for Claim Settlement

To address the difficulty and long time in receiving the claim settlement service of rural

outlets, the Company experimented with mobile claim settlement service in 2015 in six

provinces, including Sichuan and Guangdong, through Internet applications. Firstly, the

process became independent of intermediary so that all compensation cases go through

the 4G rural network and whole-process imaging for direct flow to the back office for

treatment to link up seamlessly with smart claim settlement and close low-risk

compensation cases on a real-time basis. Secondly, timeliness was improved effectively.

Take Sichuan Branch for example. It now takes only two days to complete the process

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from acceptance of claim at an outlet to payment of compensation, shortening the

service duration by 15 days. Thirdly, clients’ experience was enhanced. In addition to

improved timeliness, rural clients need no longer to submit application information at

various counters and can enjoy more convenient service. During the experiment made

by Sichuan Branch, 20% clients were interviewed randomly and showed 100%

acceptance thereof, proving the great convenience made available to clients.

3. Timely Responding to Major Emergencies and Constantly Improving

Emergency Management Mechanism

In 2015, confronted with 18 tier-1 emergent and major accidents including the stampede

event in Shanghai, the plane crash of TransAsia Airways in Taiwan, the sinking of

cruise ship Oriental Star on the Yangtze River, and the massive explosion in Tianjin, the

Company adhered to the principle of unified leadership, level-to-level responsibility,

timely response, adequate measures and reinforced cooperation, and launched the

emergency response mechanism from the very first moment. Through the joint action of

Head Office and branches, we actively cooperated with the government to carry on the

rescue and relief work, opened the green channel for rapid claim settlement and went

deep into the forefront to provide high-quality and efficient settlement services, thus

making positive contributions to protect the production and livelihood of the people

affected by dangers and disasters. In this process, we also accumulated extensive

experience in dealing with major sudden events, constantly improved the mechanism

and process for dealing with such events, enriched the contents of the emergency plan,

enhanced the scientificity and operability of the emergency plan, and upgraded the

ability of rapid response to claim settlement and the capability of flexible handling and

information sharing.

Case 1: Claim settlement for “6·1” sunken

Oriental Star

On June 1, 2015, the passenger liner “Oriental

Star” capsized and sunk in Hubei Province. On

the day the accident occurred, the Company

activated its plan for class-1 major emergency

and started to provide claim settlement services.

During the handling of the accident, the Company responded actively to the work requirements

posed by the State Council and CIRC and set up a special workgroup of claim settlement

headed by President Lin Dairen as leader and Vice President Xu Hengping as deputy leader,

which made all-round arrangements for client identification, consolation of victims’ family

members and payment of claims.

1. Effective organization and joint action

On the morning of June 1, the Company set up a special workgroup immediately after learning

about the accident, with the Head Office as command center, Hubei Provincial Branch as onsite

service center and other provincial branches as service outlets of claim settlement. The

Company established a joint action working mechanism involving multiple provinces, put staff

members on 24-hour duty and launched client identification. Under the arrangement of the

Head Office, Hubei Provincial Branch set up its own workgroup in the early morning and sent

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it to the scene to cooperate with the local government in the onsite rescue and claim settlement

service.

2. Quick response and timely verification

On June 2, the Company issued the Notice on the Claim Settlement Service for the Shipwreck

Accident of “Oriental Star”, which clarified the work requirements for claim settlement,

released 17 commitments in respect of claim settlement service and made arrangements for

client identification. The branches at all levels worked closely in joint action, defied the

difficulties, collected passenger information through various channels, including the media, and

promptly carried out the verification of underwriting information. On the afternoon of the day,

72 passengers were identified as our clients and reported to CIRC.

3. Reliance on the government and provision of active services

In the early morning of June 2, the claim settlement workgroup of the Company arrived at the

scene of the accident for claim settlement. During the handling of the accident, we approached

the local government on our own initiative, obeyed its deployment and took an active part in

disaster relief and consolation of clients. Under the arrangement of the government, the

Company undertook the reception of the family members of four passengers from Zhenjiang,

Jiangsu Province. The Company promptly set up a client consolation workgroup, which

received the members carefully, gave them mental comfort, provided onsite accompaniment

and assisted them in the identification of the victims. When they left, the members came to our

Jianli Branch in Hubei Province with a silk banner and letter of gratitude.

4. Formulation of plan and optimization of measures

As required by the CIRC meeting, the Company issued on June 15 the Guiding Opinions on

Further Improving the Claim Settlement Service for the Capsizing and Sinking Accident of the

Cruise Ship “Oriental Star” (the “Opinions”) and drew up a working plan to make unified

arrangements for the subsequent handling of claim settlement. The Opinions required all

branches to verify client information again on the basis of the list provided by CIRC, further

optimized the service initiatives, and set out 15 items of claim settlement services in 4

categories for implementation by the related branches earnestly in order to ensure the smooth

going of the claim settlement work.

The Company strictly met the “4 persistences” requirements posed by Vice Chairman Huang

Hong of CIRC for the claim settlement service, i.e. “persist in humanistic care, persist in

enterprise spirit, persist in giving foremost consideration to the overall situation, persist in

professional operations”, and conscientiously completed the claim settlement work under the

tenet of making all compensations for claims within the scope of contract liability and making

all possible ex-gratia payments.

Case 2: Claim settlement for “8·12” explosion accident in Tianjin

On the evening of August 12, 2015, an explosion devastated the dangerous goods warehouse of

Ruihai Company in Binhai New District, Tianjin. After the accident, the Head Office and

Tianjin Branch went into joint action effectively and quickly launched claim settlement service.

1. Making resolute decisions to rapidly launch emergency plan for claim settlement.

Faced with the unexpected disaster, the whole Company responded rapidly. President Lin

Dairen and Vice President Xu Hengping gave instructions at the first moment, demanding the

rapid settlement of claims to bring into full play the protection role of insurance. The Company

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launched the emergency plan in the early morning on the very next day of the accident and set

up a claim settlement working group, which arrived at the disaster area to comprehensively

carry out disaster relief and claim settlement service work.

2. Taking swift action to highlight China Life’s claim settlement service brand

The Company braced up from top down, acted quickly, overcame difficulties and set some

records of the industry, winning high recognition from the local government departments,

different social circles, news media and the general public. Firstly, we established the working

mechanism for the joint action of the Head Office and branches, set up a claim settlement

workgroup, and provided immediate guidance for the branches in identification of clients,

consolation of family members and payment for claim settlement. On the second day of the

disaster, 16 surveyors together with 9 survey cars were sent to the scene and 12 hospitals for

investigation and field identification, obtaining some 600 pieces of information from the injured

and laying a solid foundation for the claim settlement service. Secondly, we became the first to

open a green passage, released our “10 Commitments Regarding Claim Settlement Service for

the 8.12 Tianjin Explosion” to handle special cases with special methods, rolled out 24-hour

claim settlement service, took a number of service measures, e.g. reduction or remittance of

death information, cancellation of disability observation period and extension of the duration of

insurance liability, and promptly built a fast passage of claim settlement to ensure that every

organ within the Company would provide timely and quality service for the clients. Thirdly, we

became the first to honor the commitment to the death benefit payment for the police officers

and firefighters who lost their lives in the disaster relief efforts.

3. Emergency relief effort demonstrating China Life’s social responsibility

After the occurrence of the disaster, the Company shouldered both its insurance liability and its

social responsibility and quickly contacted the disaster-stricken enterprises to find out about

their needs and provide assistance. We also prepared materials to meet the actual needs of some

of these enterprises. In Binhai New District, our employees and sales teams quickly threw

themselves into the services on the site of the accident in the capacity of volunteers. At the

critical moments of the disaster relief efforts, some 100 volunteers worked hard continuously in

hospitals and on relocation sites, including some employees and sales partners who donated

money, goods and blood. They provided the relocation sites with water, drugs, clothes and cool

mats, fully exhibiting the love-sowing spirit of life insurance practitioners and their readiness to

assume liability in face of catastrophic disasters.

Shortcomings and Improvement Plan

Although the Company ranks in the front of the industry in terms of time efficiency of

claim settlement services, it still has room for further improvement. In 2016, the

Company will focus on the three levels of specialization, individualization and mobile

service, use high-tech means and new thinking mode to create new services, steadily

boost the direct payment for claim settlement and mobile service, continuously optimize

smart claim settlement, enhance the technological content of claim settlement service,

and provide the clients with more convenient, rapid and transparent claim settlement

services in a bid to further improve client satisfaction.

(III) Protection of Consumers’ Rights and Interests

We have established the working mechanism for the protection of consumers’ rights and

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interests, constantly optimized various management measures and intensified

assessment and supervision to actively protect the lawful rights and interests of

insurance consumers.

1. Actively Safeguarding Consumers’ Lawful Rights and Interests and Organizing

Various Activities

During the period of “March 15” in 2015, the Company organized publicity activities on

a corporate-wide basis. By holding contests aimed at popularizing insurance knowledge,

implementation of the General Manager Reception Day and offering consulting services

to our clients, we held 1,707 such publicity and consulting activities of various kinds

and 950 activities during General Manager Reception Day, and received 3,346 clients.

With the help of various value-added service activities, clients’ symposiums, China Life

Lecture Hall, and new media like WeChat and Weibo we widely publicized the

insurance knowledge and strengthened the education on insurance consumers.

2. Strengthening the workforce and improving complaint handling mechanism and

standard

In 2015, to further improve the quality of client complaint management, intensify the

complaint reception and handling ability and professional skills of the Company’s

service windows and strengthening the workforce, the Company revised its “Complaint

Management Measures”, drew up the “Provisional Measures for Handling Client

Complaints and Serious Emergency” and compiled the “Working Manual for Handling

Client Complaints”, providing the field service personnel of the whole Company with

standardized guidance in business operations and services. We also launched a

corporate-wide self-check in relation to the establishment of the system for handling

insurance consumption, the control over complaint handling and the regulations-based

handling of complaints and held special video conferences to intensify the supervision

of the rectification made by the institutions at all levels. In 2015, we accepted 7,000

client complaints corporate-wide, chalking up a year-on-year drop of 14%, with no

systematic risks.

3. Continuously Upgrading the Company’s Service Quality and Conducting Client

Satisfaction Survey

In 2015, we continued to work with third-party professional investigation organizations

in carrying out client service satisfaction surveys. The content of the survey focused on

clients’ experiences at the service outlets of the Company and included six

questionnaires on general service, claim settlement service, insurance policy service,

client service management center, VIP value-added service and complaint service

respectively. In 2015, the overall satisfaction score was 8.8 points, which was 1.15%

higher than the previous year and marked the fourth consecutive year of rise.

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Shortcomings and Improvement Plan

The ability of complaint management and control needs to be further strengthened, and

the quality and efficiency of complaint handling still need to be further upgraded.

(IV) Optimizing High-End Services and Improving Client Experience

It has been the goal of our Company to make unremitting efforts to provide VIP clients

with high-quality, all-dimensional and in-depth services. We have established the

differentiated service system and constantly innovated on the service contents and

upgraded service quality, striving to provide the clients with convenient and noble

service experience.

In 2015, the Company provided VIP clients with two types of services: basic service

and value-added service related to insurance policies. The former includes the counter

priority for VIP clients (including the reception room and green passage for VIP clients)

and priority calls; the latter includes international travel assistance, global medical

assistance, 12-hour health

hotline, global private

concierge privilege, free

high-end health check,

preferences from engaged

merchants, birthday

(holiday) blessing, special

activities for VIP clients

and donation of VIP special

issues. In addition, some branches provide VIP clients with bank safe, gift accident

insurance, appointment with doctors and guided consultation with doctors.

Case: Global Emergency Assistance and VIP Care Service of China Life

In 2015, the Company adhered to the service idea of “good faith, client foremost” in creating a

platform of global emergency assistance and VIP care service for all clients. Starting from June,

the platform provided the clients of China Life with a series of considerate services, including

medical assistance in global travel, health management and private concierge privilege.

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For the clients of China Life who go on business often, professional healthcare and timely

emergency assistance are particularly important. When they run

into an accident or fall ill away from home, the global travel

medical assistance service provided by the VIP care service team

of China Life can span territory, time and the boundaries of mind

to put up a protective umbrella of life in the moment of crisis and

provide timely and effective help as if the clients had a doctor

beside them.

The VIP care service team of China Life has the most

comprehensive life care experience, the resources of the most

considerate home services and the high-end experience resources

in the world. The professional teams around the globe go all out to

create unique experience for clients, e.g. customized travel, hotel,

food, purchase of luxuries, studying abroad and entertainment

shows, in a bid to satisfy the full array of individualized needs of clients and support their

indefatigable pursuit of a quality life.

Furthermore, the Company provides clients with 12-hour domestic health hotline service

through experienced doctors who answer any questions raised by clients and their family

members and provide them with the most considerate care.

Shortcomings and Improvement Plan

The nationwide VIP client service standards need to be made consistent and resources

need to be further integrated. In 2016, our Company will, by strengthening the overall

management and control around the country, further unify the service standards for

high-end clients, highlight the rapidness and convenience of basic policy services and

optimize the value and attractiveness of value-added services.

(V) Building of Service Abilities

Our Company’s client service centers and 95519 call centers across the country are the

forefront windows serving the clients and the backing system and the information

system are the support and guarantee for service ability. To enable our clients to enjoy

the most excellent service experience, we have persistently upgraded the service ability

of these two centers and enhanced the background service support ability of the backing

system and the information system.

1. Upgrading the Management of Client Service Centers

Our Company has more than 2,700 client service centers and over 27,000 clerks

nationwide. In 2015, we followed the “client-oriented” service tenet and worked hard to

address the “headaches” in counter service and inter-provincial service. Firstly, we

promoted the “Gui Mian Tong” system, which enabled us to achieve the “4 universals”

in inter-provincial services (i.e. the universal inquiry, universal acceptance, universal

handling, universal receipt/payment for the inter-provincial business of personal

long-term insurance policy) , break territorial restriction, develop inter-provincial

service workflows and business rules, support non-local acceptance of business,

conveniently handle multiple services and policies concurrently and provide service at

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any offline outlet across the country. By December 11, the number of business

transactions accepted through the “Gui Mian Tong” service system reached 76,930 in

the whole country. The system runs stably and provides users with satisfactory

experience. Secondly, the deployment of comprehensive teller system drew to a

consummate close to fully enable “one-stop” service. We broke the limitations of job

processes and spent three years completing the all-round deployment of the service

mode of comprehensive teller system and realized “one-stop” service at 2,578 counters

across the country (1,074 completed within the year). This has effectively upgraded the

efficiencies of employees engaged in counter service, and significantly improved the

clients’ experience at our counters. According to the findings of third-party surveys, the

satisfaction of counter clients reached 9.2 points, up 5.7% from the previous year.

2. Continuously Doing Well in 95519 Call Center Services

At the very beginning of the construction of 95519 telephone service centers, our

Company has laid down the principles of “high starting-point, high-standard and

high-efficiency”. In 2015, the Company committed itself to building a next-generation

multimedia client contact center, worked hard to realize business operations that support

the full access of all service channels to remote smart service, and meet the expectations

and needs of the clients in a digitalized age. To achieve the change to the “smart

operation” management mode, we completed the all-round promotion of the 95519

inquiry platform to allocate 95519 resources on a space and time-specific basis in order

to enhance the resources utilization rate and improve service. We explored the use of

Internet to innovate services and gradually began to use the “WeChat call-back” system

for new policies. By the end of 2015, eight branches already started or were preparing to

start this service. In Shanxi and Shenzhen, the rate of “WeChat call-back” for new

policies of personal insurance had

reached 90.46% and 72.1% and the

rate of successful call-back during the

hesitation period of new policies

reached 99.99% and 99.18%

respectively. “WeChat call-back” won

the title of Top 10 “Golden Ideas” for

Innovation awarded by the Federation

of Youths of National Financial

Industry. In 2015, China Life’s 95519

won the “China’s Client Contact Center of the Year Award” for the 12th consecutive

year and the “Global Call Center of the Year Award” for the third time, becoming a

brand of excellent service of China Life.

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Case: China Life successfully holds “Good Voice of China Life” service competition

In 2015, the Company launched the 95519 “Good

Voice of China Life” activity of enhancing the

skills of client service representatives under the

theme of “new concept, star-class service, heartfelt

experience, new image”. The activity used the

innovative mode of “competition in lieu of

training” and involved the participation of some

2,100 employees corporate-wide. The knowledge

points covered include underwriting, claim

settlement, acceptance of insurance, new policies

of the Company and supervisory regulations. Through the activity, the 95519 team improved

their skills, filled their gaps of knowledge and enhanced the sense of honor and cohesiveness of

client service representatives.

3. Pushing Ahead the Construction of the Information System and Backup System

The quality and efficient services of the foreground require the support of a powerful

information system. Our construction of the information system in 2015 followed the

overall objective of “one center and one network”. Starting with the sales services

oriented toward clients, we leveraged mobile Internet elements to integrate the existing

applications and further drove “outside-in” the transformation of background operations

to becoming Internet-based.

Making integrated design of information processing, transmission and delivery

modes based on the IT layout of “large background + small foreground” to

accelerate the steps toward mobile Internet. At the basic level, we used Internet

service as breakthrough to further promote the “3 clouds + 1 network” (Cloud Assistant,

Cloud Desktop, Cloud Signs + interconnected network) and push on the construction of

an ecosphere by the Company under Internet conditions. At the level of application, we

further improved the “e-series” (including e-insurance, e-account, e-shop, e-counter,

e-classroom) by focusing on the business development of the Company as foundation

and on client experience as a testing standard, promoted nationwide online/offline

services and “family doctor” programs, and effectuated the whole-process electronic

sales service mode.

Realizing the innovation of intensive operation mode. Firstly, we decided on the

mode of provincial-level centralized operation and continuously enriched the means of

32

handling so that the mode now accounts for 70.1% of the operations on a

corporate-wide basis, substantially strengthening the capability of centralized handling.

Secondly, we promoted inter-provincial centralization and completed the centralized

inter-provincial handling of relevant business in the four branches of Tibet, Ningxia,

Ningbo and Hainan. The more gave full play to the scale effect, resulted in the notable

enhance of operation efficiency, improved operation standardization by 58.62% and

operation timeliness by 12.85% compared with what they used to be before the

centralization. Thirdly, we strongly promoted operation automation and achieved a rate

of automatic business examination and approval of 73.1% on a corporate-wide basis.

4. Improving the Ability of Notification Services

The Company annually provides the clients with various timely and considerate

notification services. Such service items cover the whole insurance service process of

underwriting, security, collection and payment of premiums and claim settlement,

enabling the clients to be informed of the business handling progress at any time and

any place and easily grasp the status of insurance policies. In 2015, we continued to

perfect the client contact system, added the notification service items, optimized the

working process of notification services, strengthened the construction of notification

service teams, continuously promoted the constant perfection of the client notification

service system and enhanced the service abilities of the notification service channels.

Notification service has become the third client contact window following the counters

and 95519 hotline, through which the Company actively provides services. It provided

100 short message and email service items for the clients nationwide, successfully sent

nearly 800 million service short messages all year round, and sent over 51.11 million

service emails.

5. Promoting Panoramic Client Insight and Continuously Improving the Insurance

Purchasing Experience of Clients

In 2015, we issued the “Measures for Management of Client Information” to place

client information under all-round management, boost the creation of a unified

360-degree view of clients, help our service personnel to better understand the clients

and provide support for the Company in performing personalized client service, thereby

enhancing the experience of clients. Meanwhile, the new-generation “Yin Bao Tong”

system (phase 1) that we developed formally went live. Its functions have changed

significantly from the old system which is based on products and insurance policies to

the new system which is based on client accounts, management of insurance funds and

transformation toward a variety of portfolios. The new system will provide support for

our effort to improve the clients’ experience in purchasing insurance.

Shortcomings and Improvement Plan

In 2016, we will implement the construction of the new-generation application system

for the background support to further improve the convenience and interactivity of the

information system. We will also further expand the notification service channels and

through the new electronic service platforms such as website and WeChat, provide the

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clients with environment-friendly and highly efficient notification services. The 95519

Call Center will accelerate the construction of a next-generation full-media contact

center to upgrade service efficiency and improve customer experience.

II. Carrying Out Business in Good Faith

Our Company has always laid emphasis on the building of the salespersons’ good-faith

and compliance culture. Since the launch of the salespersons’ professional ethics and

good-faith compliance education themed “I Will Be the First to Practise Good-Faith”,

we have constructed the “7-one” long-term mechanism centered on “one good-faith

song, one good-faith oath, one Code of Conduct, one good-faith wall, five minutes one

day, one examination each year, one summit meeting each year”.

1. Concentrating on Institutional Improvement and Improving Credit

Management

In 2015, the Company revised and improved its “Administrative Measures of China Life

Insurance Company Limited for Credit Quality of Personal Insurance Salespersons” to

further expand the coverage of credit quality management, strengthen the credit quality

improvement of the contingent of personal insurance salespersons, standardize the

classified management of credit quality, give full play to the motivation and constraint

functions of classified management, and ensure the sustainable and healthy

development of the contingent.

2. Bringing the Benchmarking Role into Play and Encouraging Good Faith in

Business Operations

In 2015, the Company organized the selection of “Role Models of Good Faith Service”

and “Best Salespersons” on a corporate-wide basis to mobilize the initiative and

enthusiasm of the salespersons and sales teams to conduct business in good faith and in

compliance with laws and regulations. The 36 branches throughout the country spread

the information on the activity of finding the best insurance salespersons of China

through the Company’s Intranet sales support section, the official WeChat platforms of

provincial companies and the life circle of China Life to facilitate the activity and set off

an upsurge of “everyone looking for the best figure, everyone learning from the best

deeds, everyone practicing the best spirit” through extensive mobilization and

level-by-level recommendation, leading to the selection of a number of “Best Insurance

Salespersons of China” who are honest, dedicated, compassionate and

moral-advocating.

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3. Compliance in Business Operations and Eradication of Sales Misguidance

According to the arrangement of CIRC, the Company carried out the special inspection

under the theme of “two enhancements, two containments”, which involved the

self-check and self-correction of the sales misguidance by the salespersons, including

290,000 publicity materials, 60000 sales acts, 380,000 underwriting materials. The

organizations at all levels made timely rectifications to address the problems found in

the inspection and set up a long-term mechanism of preventing and controlling sales

risks to avoid the recurrence of similar problems from the source.

4. Guiding the Sales Team of Bancassurance Channel to Carry out Business in

Compliance

To meet the management thinking of the regulatory authority of “deregulating the front

end and regulating the rear end”, the Company strengthened the screening of employees

and improved professional training to effectively prevent sales misguidance and protect

the interests of its clients. In 2015, the Company promulgated the “Measures for

Management of Bancassurance Planners” and the “Measures for Management of

Bancassurance Client Managers”, which expressly state that “good conduct” is a basic

condition for signing contracts with salespersons. The Company included the status of

“doing business in good faith” as one of the essential conditions for employment or

dismissal of Bancassurance salespersons, prescribed that no contract may be signed

with anyone who has “bad record or unethical business behaviors during employment”,

and called for demotion or dismissal of the salespersons who have violated the

good-faith business and practice disciplines.

Shortcomings and Improvement Plan

Good faith and compliance are essential requirements for insurance salespersons. In

2016, the Company will continue to expand the coverage of good faith motivation for

personal insurance salespersons, improve the mechanism for supervision and inspection

of business compliance, step up the effort to publicize and develop the culture of good

faith and compliance, enhance their sense of responsibility and sense of honor. For the

salespersons of agencies, the Company will further strengthen good-faith education and

business training for the healthy development of agency business under the precondition

of compliance.

III. Carrying on Product Innovation Based on Client Demand

Our Company persists in being market-oriented and centered on client demand. We

have explored various kinds of product innovations, including product operation model

innovation, product mix innovation and product channel innovation as well as

innovations in the building of sales teams and the access to client resources, all of which

have won the affirmation of the clients.

Against the background of the age of mobile Internet, to meet the more diversified and

individualized insurance needs of clients, the Company transformed the existing product

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development methods in 2015 from channel-driven method to the method driven by the

needs of clients. Meanwhile, by relying on the edges of the Company in service

resources, we increased the integration of value-added services for which clients have

demand with our insurance products to make all-round product innovations.

To boost the transformation and upgrading of our product development mode and

establish the innovative product R&D mechanism oriented toward the needs of clients,

the Company set up product contact points in Jiangsu, Guangdong, Shanghai and

Shenzhen to analyze and summarize market demand through the grassroots product

contact points, know about the new demand of clients more efficiently, and simplify the

communication mechanism between these contact points and the Head Office. As a

result, we improved the speed of the Company’s vertical response to market demand,

achieved more efficient product innovation based on the needs of clients, catered for the

quick life tempo in this age of mobile Internet, and provided an information platform for

the Company so that it can supply better products and services to its clients.

Additionally, the product development departments of various channels under the

Company also made a wide range of product innovations by focusing on the needs of its

clients.

Case: Product developed to meet the particular needs of clients: Insurance for particular

diseases

To better meet the individualized needs of clients, the Company made a series of product

innovations in the development of critical disease products by focusing on the needs of clients

for particular critical diseases. Against the background of the all-inclusive coverage of existing

products for diseases, we developed products for particular critical diseases to meet the clients

of different market segments.

In 2015, the Company developed four insurance products against particular diseases for

particular groups, i.e. males, females, the old and kids (including China Life insurance against

particular diseases for males, China Life insurance against particular diseases for females,

China Life insurance against particular diseases for the old, China Life insurance against

particular diseases for kids). The four products are intended to insure against the particular

critical diseases characteristic of the client groups in different market segments, meet the

different insurance needs of different genders and age levels, cover the long-tail demand not

satisfied by the existing products, enhance product individuality and protect the clients of

various groups more completely against serious diseases, winning extensive recognition among

clients.

Furthermore, considering the other needs than the economic security needs of the clients of

critical disease insurance, and by relying upon the platform advantages of its service resources,

the Company packed “China Life Insurance against Particular Diseases for Females (A)” for

the market segment of females with the gene screening of BGI-Shenzhen and a variety of other

special healthcare services, including physical checkup, for marketing to clients in the form of a

benefit plan. These packages blend the needs of clients into our service items, provide clients

with both economic compensation and quality healthcare service, assist them in disease

prevention, and help protect their health.

Shortcomings and Improvement Plan

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The product contact points of the branches are still at the early stage of establishment

and the innovative product R&D mechanism has yet to be improved through practices.

Despite our efforts in product development and innovations made so far in response to

the needs of clients in various market segments, the Company has been unable to

conduct in-depth product and service innovations for every market segment due to

limited service resources. The Company needs to further upgrade its technologies in

product development and cooperate more extensively with high-level international

providers of service resources.

IV. Electronic Services

In recent years, through the comprehensive use of Internet and other electronic means,

our Company has provided convenient services to meet the insurance demand of the

general public. Meanwhile, we have continuously improved the online service quality

and strived to bring the best e-service

experience to our clients.

In 2015, the Company developed emerging

modes of sales and services, e.g. sales based

on the Internet and WeChat, to integrate the

online sales via e-business with traditional

offline sales via sales teams, accelerate the

development of online inclusive insurance

business and continuously improve the

quality of online services in a bid to enable

the clients to receive the best experience in

electronic service.

Forming the service capability based on mobile Internet and platform-based

services to ensure future leading position. On June 26, the Company formally

released its first Internet product “e-Account”, which has achieved the online/offline

interconnection of five key business scenarios, including the borrowing/repayment

under insurance policies, claim settlement and case reporting, and cumulatively

completed over 300,000 borrowings. We have simplified user operations and added

login-free functions to ensure smoother experience of users. The system owns more

than 4.13 million registered users and has bond 15.6 million policies. Additionally, we

have taken structural optimization measures, e.g. cluster expansion, thereby enabling the

system to run more stably and remain 99% available in 7×24 hours.

Optimizing the sales platform on the official website of the Company to enrich

Internet-based insurance products. The Company has developed and rolled out

“China Life Xin E Endowment Insurance (Universal)” and “China Life Insurance

against Particular Diseases for Females (A)” that are suitable for sales on the Internet,

thus further enriching the product lines for online sales. In the meantime, we actively

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expedited our cooperation with third-party online sales platforms to make it more

convenient for clients to purchase insurance online.

Expanding mobile Internet business platform and enriching the services for clients.

The number of fans of the official WeChat public account of the Company has topped

500,000. In 2015, we launched various promotional activities on this platform,

including “Shooting at the Basket for Love”, Spring Festival marketing of “Five-Yuan

Inclusive” accident insurance and “11.11” online shopping carnival, and enriched the

services for clients with initiatives such as inquiry about dividends, change of insurance

policies and appointment with service network, receiving favorable comments from

clients. We also encouraged salespersons to provide clients with product information

through WeChat, effect online sales and bring convenience to clients.

Shortcomings and Improvement Plan

Compared with the increasingly diversified and individualized needs of clients for

electronic services, the Company needs to respond in a more rapid and all-round manner.

In 2016, we plan to continue to roll out new insurance products that meet the needs of

clients, make fast upgrading of the existing products for online sales, further optimize

online sale process and improve the handling efficiency of the platform with an

objective to continuously enhance clients’ purchasing experience.

V. Key Performance Indicators for Client Responsibility

Indicator Name 2015 2014 2013 Indicator Definition

Manual call

completing rate 90.05% 87.56% 92.33%

The percentage between the telephone traffic

received by the life insurance skill group of

95519 Call Service Center and the manual

labor amount applied by such group.

Rate of return

visits to new

policies

100% 99.98% 100%

The coverage rate of 95519 Call Service

Center’s implementation of return visits to

new policies

Success rate of

return visits to

new policies

99.98% 99.83% 99.20%

Efficiency of 95519 Call Service Center’s

implementation of return visits to new policies

Complaint

settlement rate

within 9 days 100% 96.05% 98.92%

The proportion of the number of complaint

cases which are actually settled within 9

natural days against the number of all

complaint cases within the monitoring period.

Claim settlement

rate within 5 days 98.48% 96.72% 95.53%

The proportion of the claim settlement cases

which take 5 natural days or less from

acceptance of application to the completion of

approval within the monitoring period

Client service

satisfaction 8.8 8.7 8.5

The clients’ satisfaction with the Company’s

overall services, including the clients’

evaluation of the Company’s sales services

and operation services.

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Part III Employee Responsibility

The progress and growth of employees constitute the foundation and guarantee for the

Company’s constant development and the concern point we value the most. The

Company has taken the growth and development of the employees as one of its main

responsibilities. The Company persists in putting people first and strives to provide

employees with good job opportunities, where employees are free from anxiety, have

development space, enjoy market prestige and have professional value. The Company

has established a perfect set of management mechanisms for absorbing, cultivating,

using and inspiring talents, built up sound career development channels and a stage for

showing personal value, and fostered an inclusive and harmonious working

environment. The Company strives to protect the rights and interests of its employees,

promote their growth and motivate their sense of belonging and happiness.

I. Protecting Employees’ Rights and Interests

(I) Remuneration and Benefit

Our Company has implemented a job-based performance incentive system with

reference to the market conditions and established a remuneration incentive system with

internal fairness and external competitiveness, bringing into full play the incentive and

restriction role of remuneration. Meanwhile, we have constantly optimized the

employee welfare and benefit plan to ensure that, in addition to the statutory welfare as

stipulated by the State, including basic pension insurance, basic medical insurance,

maternity insurance, unemployment insurance, work injury insurance and housing

provident fund, all employees are entitled to an abundant welfare package including

enterprise annuity, supplementary medical insurance and regular physical examination

as provided for in the Company’s Guidelines for Welfare Management.

In 2015, the Company increased the remuneration of qualified employees according to

the optimized remuneration system for the Head Office and its direct subordinate

organizations, and appropriately increased the salary of some low-ranking employees by

taking into account market salary level, changes in internal and external environment

and other factors. We also clearly specified the measures to increase remuneration

incentives for the employees recruited from colleges and universities for the R&D and

data center of the organizations directly under the Head Office and provide more

favorable remuneration guarantee for the growth and development of undergraduate

students. Meanwhile, the Company continued to vigorously promote the overall

implementation of the Guiding Opinions on Comprehensively Implementing the Policy

of Favoring Grassroots Units in Remuneration and increased the salary resources for

the grassroots units. This has helped to improve the income of grassroots employees,

reduce the income gap between superior and subordinate companies, establish the joint

mechanism for the income of executives and employees, optimize the way of deciding

employees’ wages and fulfill equal work for equal pay for grassroots employees.

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The Company established a fairly adequate welfare system for the employees. In

addition to the mandated benefits as stipulated by the State, the Company also offered

the employees six categories of benefit items, namely, work support, housing security,

medical and risk protection, living, children security and old-age security. Besides the

cash benefit, the aforesaid benefit items also included the non-currency items such as

paid vacation and regular physical examination to fully reflect the Company’s

humanistic care for the employees. Moreover, the Company also set up the enterprise

annuity as long-term incentive and this formed the second pillar of the employee

pension security system.

(II) Health and Safety

The Company laid great stress on promoting the balance between the employees’ work

and life. While bringing into full play the employees’ personal ability, the Company

elaborately created good working environment for the health and safety of employees.

The Company attached importance on protecting the employees’ rights to rest and

vacation and actively implemented the national laws and regulations concerning labor

time, annual vacation, labor protection and family planning.

Actively creating conditions and encouraging employees to scientifically arrange

for rest and vacation. In addition to the national legal holidays and public holidays, the

employees could also apply to take annual paid leave, sick leave, work injury leave,

personal leave, marriage leave, funeral leave, pregnancy leave, maternity leave, nursing

leave, family planning leave, home leave, journey leave and leave for public affairs.

Taking measures to encourage annual leave and ensuring employees to apply for

annual leave. This included giving priority to annual leave applications, no restriction

on applying for leave by different times, and strict control over not taking annual leave

on business.

Protecting the leave entitlement of female employees and their physical and mental

health. The female employees of the Company enjoy pregnancy leave, maternity leave

(including miscarriage leave) and nursing leave according to law. In 2015, the Trade

Union of the Company made it a priority to promote the efforts and follow up the status

in providing female employees with protection during “4 periods”, arranging regular

checkup for them and setting up breast-feeding rooms by companies at all levels. Under

the theme of “Working Healthily and

Living Happily” of China Financial Trade

Union, we took into account the

characteristics of workplace females and

carried out a wide range of activities

corporate-wide to promote their physical

and mental health, such as health lectures,

sports & fitness, leisure events and

psychological counseling. The Female

Employee Committee of the Trade Union

40

of the Company organized video lecture entitled “Care for Women’s Health” for the

female employees corporate-wide, where Professor Zhang Lijia, director of

Reproductive Medicine Center of the Obstetrics & Gynecology of Beijing Chaoyang

Hospital affiliated to the Capital Medical University, explained the prevention and

treatment of common diseases for female employees.

(III) Protecting Employees’ Rights and Interests

Encouraging employees to take part in democratic management. In 2015, the

Company held the first session of its Second Workers’ Congress attended by 157 staff

representatives from organizations at all levels, all lines and all posts of the Company.

The attendees put forth 86 proposals that covered the planning of development strategy,

business development, operation management, improvement of corporate culture,

reinforcement of the workforce, and protection of the rights and interests of the

employees of the Company. Noticeable achievements were also made corporate-wide in

improving the Workers’ Congress system. In 2015, 31 of the provincial-level companies

held Workers’ Congress meetings, accounting for 79% of the total, while 93% of the

prefectural-level companies held Workers’ Congress meetings.

Case: First Session of the Second Workers’ Congress of the Company

On April 9~10, 2015, the

Company held the first

session of its Second

Workers’ Congress in

Beijing. At the congress, the

attendees heard, reviewed

and approved the “Report

on the Business

Management and

Development of the

Company” made by

President Lin Dairen, the

“Report on the Financial

and Budgetary Management of the Company” made by Vice President Yang Zheng, and the

“Report on the Candidates of the Employee Representative Supervisors of the Fifth Board of

Supervisors of the Company”. They voted for and adopted the “Resolution of the First Session

of the Second Workers’ Congress of China Life Insurance Company Limited”. They heard the

“Report on Corporate-Wide Education and Training of Employees” and “Explanations about

the Revision of the Administrative Measures for the Education and Training of Employees”

made by the Department of Education and Training, the “Report on Solicitation and Handling

of Proposals at the First Session of the Second Workers’ Congress of the Company”, the

“Report on Implementation of the Proposals of the Third Session of the First Workers’ Congress

of the Company” made by the Democratic Management Team of the Workers’ Congress and a

series of proposals regarding the operations and development of the Company. During the

session, the representatives earnestly fulfilled their duties and advanced many proposals and

opinions on the management, reform and development of the Company, which fully reflected

the wisdom of the employees and their warmth and sense of responsibility in taking an active

part in the construction of the Company.

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Intensifying the performance of contract to safeguard the legitimate rights and

interests of female employees. In November 2012, the Company put all the female

employees under its jurisdiction under the coverage of collective contract to safeguard

their legitimate rights and interests and protect their safety and health in work. By the

end of November 2015, the Company had, on a corporate-wide basis, completed the

renewal of a special collective contract for protection of the rights and interests of all its

female employees, with the trade unions at all levels supervising the performance

thereof to ensure the implementation of the protective measures contained therein.

Maintaining the rights of female employees to take part in the democratic

management of the Company. The Trade Union of the Company requires that the

representatives of female employees should take up an appropriate proportion at the

Workers’ Congress of the companies at all levels, and that the measures and activities

involving the protection of the rights and interests of female employees should be

included into the plan of the Workers’ Congress, and that the proposals involving the

protection thereof should be tracked to ensure 100% implementation.

II. Caring for Employees’ Growth

Our Company has been highly concerned about and always committed to creating good

working environment and equal and diverse career development opportunities, and

adhered to the talent concept of “putting people first and combining integrity with

professional competence” to care for the whole process of the employees’ career

development. In the training, we focused on meeting the Company’s dual needs for the

innovative development and growth of the employees, and provided comprehensive,

systematic and targeted support for improving the employees’ qualities.

(I) Training

1. Further Improving the Day-to-Day Training System for Employees

The infrastructure for education and training has been constantly improved. The

Company has equipped 4,446 education and training management personnel, 3,247

in-service full-time lecturers and over 45,180 part-time lecturers. In 2015, Chengdu

Insurance Research Institute was officially put into use, the construction of Beijing

Insurance Institute and provincial training centers and urban training workplaces was

being pushed ahead in an orderly

manner, and many pieces of

courseware won the outside

awards, making the teaching

resources more sufficient.

Employee training has been

constantly intensified. In 2015,

the Company held 1,734

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classroom training sessions of various kinds with a cumulative trainee number of

116,837 person-times, and held 2,770 various online training sessions in which the

number of learners reached 883,199 person-times. Meanwhile, in light of job demand,

we selected and sent various professional backbones and management cadres at all

levels to participate in over 100 sessions of special external training. In the orientation

of training, we laid more stress on the enhancement of employees’ job skills and the

effective support for the Company’s operation and management performance. In

addition, while pushing forward the tiered and classified training of employees at

different levels, the Company initially erected a system of brand courses that meet its

needs for basic knowledge and skills, intensified the training of grassroots and field

employees, adjusted training orientation in keeping with market competition and

development needs.

Online training platform has

been further improved. The

functions of China Life

e-Learning Online Training

System has been continuously

improved and its operation

efficiency and stability have

been further enhanced. In 2015,

the click volume of online

learning courses reached over 1,650,361, and 508,499 persons participated in the online

tests. IT-based management is enabled for the whole

training process, which has achieved real integration and

sharing of training resources and provided strong technical

support for both training and management.

The construction of the mobile learning system has

been smoothly launched. In 2015, we completed the

development of cloud-based classrooms and launched the

promotion of mobile learning applications. With the

gradual improvement of the mobile learning system, we

will further enrich the ways of employee training and

improve the training effect.

Case 1: Training of the young and middle-aged cadres of

the Company

In 2015, to accelerate the enhancement of the capability of the branches in key cities for market

expansion and sustainable development, the Company optimized the structure of training

resources allocation and focused on strengthening their ability to innovate operation

management mode and solve the difficulties in development. The Company provided

systematic training for the principals of the branches in 88 key cities.

43

Case 2: Lecture Theater of China Life

The Company actively explored the

transformation and innovation of staff

training. In 2015, the Head Office launched a

series of lectures entitled “Lecture Theatre of

China Life” and vested the lectures with new

content by making adequate use of the

internal and external resources of the

Company to carefully arrange a series of

topics involving the macro economy, policies

of the industry, political situation, hot-spot

and current affairs and professional analysis,

with due considerations given to the knowledge expansion of the employees and improvement

of the training culture of the Company, thereby enabling the lectures to be full of vigor and

vitality. In the year, 20 lectures were held with an aggregate number of 5,156 participants. In a

number of training sessions, the registration quota (in hundreds) was snapped up in merely half

an hour after the sign-up started. These lectures have become a display window of our staff

training brand and are highly spoken of by the employees.

Shortcomings and Improvement Plan

The supportive role of training in enhancing the quality and skills of the employees

needs to be further strengthened and there is need for further innovation in the means

and manner of training. In 2016, the Company will continue to focus on improving the

performance of its employees and the training methods, promoting new training

techniques and enhancing training results to provide strong support for the growth of its

pool of talents.

2. Strengthening the Cultivation of Specialized Talents

Pushing Forward and Implementing the “Program for Fostering Leading and

Reserve Talents in Professional Fields”. To speed up the fostering of core talents

playing an exemplary role and having a leading position in the professional fields, the

Company drew up the “Program for Fostering Leading and Reserve Talents in

Professional Fields” for 10 specialties, including human resources, financial

management, IT and risk management. Under the guideline of “specialty-specific

selection, intensification of professional training, enhancement of professional

competence and development of professional talents”, the Company aims to spend 10

years of time fostering around 1,000 young and middle-aged expert leaders and

high-caliber professionals. In 2015, the education and training of 261 candidates were

completed as part of the leading talent cultivation project.

Case: Fostering Leading and Reserve Talents in Professional Fields

Program Objective

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To meet the urgent requirements of the Company for talent development in its professionalized

and meticulous management and accelerate the training of core talents playing an exemplary

role and having a leading position in the professional fields, the Company will train a number

of high-quality and inter-disciplinary professional talents proficient in the business of various

professional fields, adept at management and equipped with strategic thinking for its branch

organizations, at a scale of about 300 trainees every three years. These leading talents will play

a leading and proliferating role in their respective professional fields and help accelerate the

all-round upgrading of the overall quality of our pool of professionals.

Program Initiatives

The cultivation cycle for every batch of leading (reserve) talents is 3 years. The everyday

training activities are based on the 10 professional lines specified by the Head Office and occur

in three stages of knowledge expansion, competence enhancement and application &

improvement. During the cultivation period, the Company will, in the principles of embracing

aptitude-based teaching and integrating learning with application, adopt such training methods

as combining centralized training with on-job learning and practice and combining classroom

teaching with applied researches. The program participants will have the opportunity to

improve their comprehensive quality in an all-round manner via learning, researches, practices

and exchanges.

Promoting the mode of base training

for the “top leader” of county

sub-branches. In 2015, the Company

selected 100 managers of county/district

sub-branches in 2 batches for training at

our training base and held a symposium in

Jiangdu, Jiangsu Province summarizing

the results of training provided on the

platform of such training bases.

Vigorously promoting “Young Talent” cultivation program. Under the

“Implementation Plan of China Life for Cultivation of Young Talents”, the Company

45

continued to provide quality resources for cultivating outstanding talents in 2015

through such measures as intensified selection, centralized training, dual-tutor system,

job rotation and “survival of the fittest”. In the year, we selected 363 young talents and

successfully held 6 training sessions for them.

(II) Work Shift and Exchange

We believe that the work shift and exchange mechanism can help the employees to have

different employment records and accumulate more work experience. Through such

mechanism, the employees can be shifted to the posts in which they are more interested

and which are more competitive, and they can get the feeling of freshness and challenge

in their work. This mechanism is one of the effective means of motivating employees

and inspiring the vitality of the employee team.

Work shift and exchange involving Head Office employees

In 2015, the Company continued to provide the Head Office employees with the

trans-departmental work shift opportunities in various ways. During this year, there

were nearly 40 employees from the Head Office going to the new posts through internal

recruitment and free choice. We also reinforced the internal and external exchanges of

the Head Office employees and sent certain cadres to serve a temporary post at local

government departments in Beijing, Guangxi, Tianjin and Guizhou. For the

management personnel who lacked the grassroots work experience, we helped them to

know about the actual conditions of the grassroots units and enrich their management

experience by sending them to grassroots branches for exchange and tempering by

stages and in groups. In 2015, we selected and sent nearly 30 exchange cadres.

Job rotation and exchanges of senior management personnel

According to the needs of cadres’ growth and actual job duties, the Company promoted

the job rotation and exchanges of senior executives in 2015 and exchanged the office of

two “top leaders” of provincial-level branches and 27 deputies. The approach further

increased the experience of the executives and helped broaden the field of vision,

enhance competence and strengthen their ability to cope with complicated market

competition.

Job rotation and exchanges of new employees

The Company issued the “Measures for Management of New Employees” and the

“Guide to Training of University Graduate Employees” to coordinate the job rotation

and exchange of nationwide new recruits. For the new employees who have been

assigned to a post, at least one job rotation must take place within three years in

principle. Job rotation is divided into three cycles of 3 months, 6 months and 1 year, and

follows the guiding principle of professional line first and administrative processes

second. For the reserve talents of management and sales, the breadth and difficulty

involved in the posts will be increased gradually starting from their first post as they

rotate to more extensive posts. For the professional reserve talents, job rotation will

occur within relatively consistent professional lines or the processes involved based on

46

the professional skills they already have. For some outstanding university graduate

employees selected to work at our provincial or city-level companies, a system has been

established for their job rotation to grassroots units. This has helped to form a positive

talent cultivation and circulation system whereby university graduate employees

assigned to grassroots units will temper themselves and grow and have opportunities to

get promoted on a selective basis to the branch companies at or above prefectural-level

or to county-level sub-branches, while the outstanding employees from the latter will be

exchanged to grassroots units to take office.

Case: Pre-trip meeting for Head Office cadres on job rotation to grassroots units

On November 5, 2015, the

Company held a pre-trip

meeting for the Head

Office cadres designated

for job rotation to

grassroots units, which

summed up the experience

gained from the first batch

of exchanged cadres and

briefed the cadres to be

exchanged on the policies and purpose of such exchange. President Lin Dairen was present and

delivered an important speech on behalf of the President Office. Since 2014, the Head Office

has clarified the talent cultivation guideline of enriching the cadres’ experience in grassroots

work and formulated the policy of regularly selecting cadres for exchanges to grassroots

branches to lay a strong foundation for tempering the contingent of cadres through grassroots

work and facilitating the growth of employees. By December 2015, over 60% of the cadres at

or above manager level in the Head Office had obtained grassroots work experience. The job

exchange program has achieved excellent results.

(III) Diversified Promotion Channels

As a professional life insurance company, we need a large quantity of the forefront

talents who have extensive managerial experience and the professional talents who have

the professional spirit, are good at analysis, know about management and are capable of

innovation. The Company attached great importance to the development of the forefront

management and professional talents at the Company and established for them the

diversified career development channels to encourage them to make constant

accumulations and innovations on the different professional lines of the Company.

47

Making definite the career development plan for new employees. The Company has

established three career development channels respectively for professional executives,

management personnel and professional technicians. Among them, the career

development goal of the employees on the line of sales management is to become

mid-level and high-level professional executives; the employees on the lines of general

administration and business management can either choose the management position

development channel based on their work performance and management ability or

choose the professional technician development channel based on their professional

technical ability. These three channels can be shifted between adjacent tiers so as to

realize “career development without barriers and diversified channel shift”.

Career Development Channels for New Employees (dash stands for tier)

Widening the career development channel for the executives of branch companies.

To motivate the operation management personnel, who have long worked at the

forefront and made outstanding contributions, to pay more attention to their long-term

planning and value enhancement, in 2014, the Company launched the building of the

business director team, further widened the growth channel for executives of branch

companies and further gave priority to the grassroots and sales units in the selection and

use of personnel. In 2015, the Company newly promoted seven business directors.

III. Fostering Harmonious Working Atmosphere

(I) Improving the Sites of Employee Activities and Carrying out Colorful Cultural

and Sports Activities

Construction of staff homes. Since 2013 when the Trade Union of the Head Office

48

drew up the “2013-2015 Plan for Construction of Up-to-Standards Staff Homes”, the

initiative has gone on effectively on a corporate-wide basis and the number of

up-to-standards staff homes reached 25 in provincial-level companies, registering a rate

of 69.4%; 203 in prefectural-level companies, registering a rate of 66%; and 132 in

county-level sub-branches under provincial-level companies, registering a rate of

48.4%.

Case: Constantly improving activity sites and facilities of the staff homes at our branch

companies

Based on the requirements for cultural and sports facilities

set out in the “Plan for Construction of Up-to-Standard Staff

Homes” issued by the Head Office, the trade unions at all

levels corporate-wide have substantiated and normalized the

construction of activity sites and staff reading rooms in the

office buildings of the branches as staff homes and upgraded

the facilities of staff homes to ensure that all hardware facilities meet the standard. The trade

union of Quzhou Branch in Zhejiang Province vacated sites in the office building to set up a

reading room, a multifunctional activity room and a fitness center, and purchased ping-pong

tables, running machines, spinning and fitness equipment. Fuzhou Branch set up a

multifunctional hall for both training and recreation, which included a stage and a gym room of

50m2 equipped with fitness machines, running machines, a ping-pong table and other exercise

devices. Shanghai Branch cooperated with Shanghai Library, which regularly updates the books

in the reading room of the branch and set up mobile library vans at all floors of its office

building to provide the employees with convenient reading.

49

In 2015, the Head Office organized a

hiking event entitled “A Happy Heart

and A Heathy Walk”. President Lin

Dairen, Trade Union Chairman Miao

Ping and nearly 180 members of 19

teams from various departments of the

Head Office took part in the

competitions of 10km and 5km. In

addition, 14 clubs of soccer, basketball,

tennis, badminton, table tennis, billiards, photography, dancing, music, yoga, Taiji

boxing, aerobics, bridge and chorus as well as the calligraphy society organized regular

activities in which more than 10,000 persons participated.

According to the overall requirements of

the Trade Union of the Company, the

trade unions of local branches held novel

and diversified cultural and sports

activities, which have the following

characteristics: 1. Regular activities. The

provincial companies and the branches in

major cities organize weekly sports

exercises of employees through the

creation of cultural and sports clubs; 2.

Diversified forms. In addition to the

clubs, there are also multi-sport events,

special games, festival celebrations and

group activities. The trade union of

Fujian Provincial Branch launched the

theme education activity of “Ethics

Forum” in the whole province. Putian

Branch carried out the “Ethics Forum”

activities under the themes of “Taking pleasure in helping others”, “Preserving vigor

and passing on positive energy”, “Remembering the history and heroes”. The Trade

Union of Jinzhong Branch in Shanxi Province holds a New Year gala each year, with the

employees performing programs that were all created by themselves, enriching their life.

The Trade Union of Erdos Branch in Inner Mongolia held a basketball competition in

Dongsheng Region, which was participated by 8 teams from the sub-branches,

marketing service departments and the departments of the branch, creating a platform

for the employees to anneal themselves.

(II) Enriching the Helping Activities of the Company and Passing on the Warmth

of the Collective

Level-by-level assistance and help for needy employees. The Trade Union of the

Head Office set up a level-by-level assistance and help system, which made full use of

50

the assistance funds of the trade unions at all levels and helped the employees in

difficulty caused by different scenarios. In 2015, the Trade Union of the Head Office

continued to improve the level-by-level management and assistance of needy employees.

Firstly, at the beginning of the year, the leaders of the Company went to the grassroots

as part of their daily jobs to continue the activity of “warmth from China Life to your

home” during the two festivals. Secondly, the files of impoverished employees were

supplemented and improved at the level of the Head Office and grant funds were

allocated to these employees and financially distressed single-parent female employees.

Thirdly, explorations were made at establishing a staff mutual aid program under the

unified arrangement of the Trade Union of the Group.

Help for female employees as an expression of warm care. The Company has set up

the mechanism for providing daily help to the female employees in difficulties. Starting

from 2014, the Company set up a level-by-level help system and built and improved the

files for needy employees at the three levels of the Group, the Head Office and the

provincial companies. The female employees who suffer from diseases or who are

single parents or exceptionally poor will receive consolation from the organizations

during holidays and at other times on a regular basis. During the New Year’s Day

holiday and the Spring Festival of 2015, the Trade Union of the Head Office paid

consolation subsidies to the exceptionally poor female employees at the level of the

Head Office.

Case: “Sisters Hand in Hand” --- Pair-up help for needy female employees

To stay close to the field and serve the grassroots units, the trade unions at all levels

corporate-wide arranged the female leaders or female model workers to pair up with needy

female employees in their respective organizations and provide psychological assistance to the

latter as volunteers. They may play the role of a “considerate sister” so that they can promptly

find out about what the latter think, want and need, continuously provide them with mental care,

assist them in solving the actual difficulties in life and work, and join hands with them in tiding

over the difficulties.

IV. Key Indicators for Employee Responsibility

Name of

Indicator

2015 2014 2013 Definition of Indicator

Total workforce 97,607 101,972 99,230

Size of employees for internal

work

Age of employees ≤35

43.09%

≤35

46.6%

≤35

46.5%

Employees’ age structure

Gender of

employees

Female

57.34%

Female

57.5%

Female

56.9%

Measurement of labor-related

human rights policy

Coverage of new

employee

orientation training

95.23% 94.19% 97.85% Coverage of newly admitted

employees in pre-job training

Employee training 87.97% 87.88% 85.45% Coverage of employees in

51

coverage training

Advanced

executive training

coverage

97.28% 97.17% 97.33% Coverage of advanced

executives in training

Average hours of

employee training

30.01 h 24.46 h 34.33 h

Average hours spent by each

hierarchy in various training

Number of

full-time and

part-time lecturers

3,247

full-time

lecturers;

45,180

part-time

lecturers

2,485

full-time

lecturers;

35,956

part-time

lecturers

1,700

full-time

lecturers;

35,000

part-time

lecturers

Number of full-time and

part-time lecturers

Number of

textbooks and

coursewares

developed

Textbook:

21

Courseware:

264

Online

courseware:

712

Textbook:

20

Courseware:

264

Online

courseware:

34

Textbook:

18

Courseware:

167

Online

courseware:

56

Cumulative number of

textbooks and courseware

developed at the end of the

statistics period

Number of online

learning

participants

1,650,361 1,432,192 3,931,146

Total number of participants in

online learning through China

Life e-Learning System during

the year

Number of online

test participants 508,499 160,633 255,594

Total number of employees

participating in online tests

through China Life e-Learning

System during the year

Notes: The “average hours of employee training” used in the calculation was based on the

accumulated actual hours, i.e. all the hours spent by the employees in learning through face-to-face

teaching and online courses.

52

Part IV Partner and Industry Responsibility

While fulfilling its own development, the Company has continuously expanded its

insurance business, satisfied the needs of people’s livelihood, constantly improved its

CSR performance in its procurement and investment processes, pursued common

growth with our partners, actively participated in underwriting major events, gradually

expanded the coverage of insurance services, and strived to make greater contributions

to the development of the industry.

I. Expanding Insurance Business and Serving the Needs of People’s

Livelihood

As the domestic life insurance company with the most organizations and outlets, it is

duty-bound to draw upon its own experience and professional strengths to continuously

expand the insurance business and serve the needs of people’s livelihood. Our Company

has taken the lead in domestically carrying out such policy-based businesses as NCMS

(New Rural Cooperative Medical System), NSEIS (New Rural Social Endowment

Insurance System) and major disease insurance and gained successful experience in

NCMS modes of Xinxiang, Luoyang, Panyu and Zhengzhou and in NSEIS modes of

Deyang and Yixing. The pioneering mode of petty insurance was praised by the

international insurance industry as a “Chinese sample” and became the first study case

of Harvard Business School for the Chinese insurance industry.

(I) Policy-Based Medical Handling Business

Since 2003, our Company has actively participated in the deepening of national medical

and health system reform and the improvement of the construction of social medical

security system, carried out the policy-based medical handling businesses such as new

rural cooperative medical system, basic medical insurance for urban residents, basic

medical insurance for urban employees and urban and rural medical assistance, and

successively explored some typical influential experience such as “Xinxiang Mode”,

“Luoyang Mode” and “Zhengzhou Mode”. The Company has been the forerunner and

pioneer of commercial insurance in the medical service handling field and played an

active role in promoting the transformation of government functions and in improving

people’s livelihood and social harmony. In 2015, the Company added more than 70

medical handling service items in 17 provincial-level branches, which covered over 24

million people. Currently, the Company operates over 300 items of medical handling

services across the country, which involve over CNY6 billion of entrusted management

funds each year and serve over 50 million people, enabling the Company to lead the

industry.

Case: Henan Branch creating the “15-min circle of insurance services”

Henan Branch implemented the project of “one village, one room and one specialist” to

accelerate the formation of the team of service specialists for policy-related insurance business

53

and created a “15-min circle of insurance services” so that urban and rural residents can enjoy

better and faster insurance services without having to travel far away.

(II) Major Disease Insurance Business for Urban and Rural Residents

To improve the construction of the

multi-tiered medical insurance system, in

the process of stepping from the fulfillment

of “medical care available for the sick” to

the solution of “becoming poor and

returning to poverty due to diseases”, the

State ushered in the “major disease

insurance” as a supplementary medical

insurance for “NCMS” and urban

residents’ medical insurance. It is a

significant livelihood and heart-winning

project, aiming to further improve the public social security services. Relying on our

managerial experience accumulated in policy-based medical handling business and

commercial health insurance business, China Life actively participated in the major

disease business and incorporated such insurance into our overall development plan. By

drawing upon our professional ability and experience, and with our outlets widespread

in both urban and rural areas, we were able to provide the insured with services to the

satisfaction of the government and bring benefit to the general public.

In 2015, the Company took part in the bidding for

critical disease insurance in various places and added

over 60 new projects undertaken through 21

provincial-level branches, increasing the number of

bid-winning population by more than 60 million. By

the end of 2015, the Company teamed up with the

governments of more than 200 cities through 31

provincial-level branches to carry out more than 200

critical disease insurance projects that served nearly

400 million urban and rural residents and provided

one-stop claim settlement service for critical disease

insurance in nearly 18,000 hospitals. In the three

years since the critical disease insurance debuted in

2012, the Company has cumulatively paid critical

disease insurance compensation for more than 4

million people, raising the proportion of reimbursement by more than 10 percentage

points on the basis of basic medical insurance.

Case 1: Jiangsu Mode

On the basis of undertaking critical disease insurance and other medical insurance business,

Jiangsu Provincial Branch cooperates with the local Health and Family Planning Commission

in vigorously promoting the referral service for the insurance participants. Currently, it has

54

resident healthcare service teams in 10 hospitals at or above city level to provide services like

medical guidance, assistance in hospitalization, visit to inpatients and assistance in settlement,

forming a resident service network and realizing the integration of referral service for patients

of critical diseases. It has now served some 30,000 patients and provided referral service for

nearly 3,000 inpatients for transfer to other hospitals.

Case 2: Jiangmen Mode

By leveraging the platform for the critical disease

insurance in Jiangmen city, Guangdong Branch

started community General Practice (GP) service

and provided 10 preventive health services and 7

self-service health checks for prevention of

disease. While making an investigation tour in

Jiangmen, President Miao Jianmin of China Life

Insurance (Group) Company commented that “the

Jiangmen mode has set an example of mutual-trust cooperation among governments, social

security departments, public health authorities, hospitals and the commercial insurance

company”. (Caption: President Miao Jianmin offers guidance on critical disease insurance

business during his investigation tour in Jiangmen.)

(III) Petty Insurance

Our Company has actively responded to the call of the Central Government for serving

agriculture, farmer and countryside, promoted the inclusive goal of the personal

insurance business for serving the broadest masses of the people, helped the poor

groups to break away from the vicious circle of “becoming poor and returning to

poverty due to diseases and disasters”, actively carried out the personal petty insurance,

constantly deepened the innovative practice in petty insurance and expanded the

coverage of petty insurance to alleviate the impact of accidents, diseases and other risks

on low-income families. In 2015, our Company continued to steadily promote the

development of petty insurance business and underwrote petty insurance for 89.677

million applicants, an increase of 7.8% over the previous year.

Case: Taking an active part in piloting financial poverty alleviation and making

innovations in this regard

To innovate the mechanism for financial poverty alleviation, improve the level of protection

against risks available for people in poverty-stricken areas, and help them shake off poverty, the

Company has, starting from 2015, drawn up plans for financial poverty alleviation in response

to the working requirements imposed by the State Council Leading Group Office of Poverty

Alleviation and Development (LGOP), and started pilot petty insurance cooperation projects in

certain counties in the five provinces of Sichuan, Hunan, Guangxi, Anhui and Guizhou in a bid

to help alleviate poverty, including selection of pilot units in cooperation with LGOP and

proactive participation in the design of the pilot schemes. Currently, the pilot work is underway.

(IV) Accident Insurance Business for Family Planning Households

To strengthen the risk-resisting ability of households that practice family planning (“FP

households”), particularly those needy ones, and to promote the building of harmonious

55

families, in 2008, our Company cooperated with China Family Planning Association in

launching a series of accident insurance products for household practicing family

planning. Over the past 7 years, we have underwritten this insurance for over 13 million

households, with the coverage of population constantly expanding. In 2015, to better

serve the great number of FP households, our Company made efforts to innovate its

service ways, vigorously popularized the “FP insurance service card”, explored and

introduced new modes of policy issuance, such as the Internet-based issuance of

policies, and improved the efficiency of FP insurance services. With the constant

popularization of FP insurance, its role in protecting FP households has been

increasingly reinforced, and it has benefited more and more FP households. In addition,

the Company continued to donate another CNY10 million in 2015 for use in the

program of helping the needy families practising birth control, benefiting 130,000

people in families bereft of their only child and 63 pilot areas across the country.

(V) Accident Insurance for Old People

In light of increasingly serious situtation of population aging tendency and notable

shortage of social insurance for the old people, the Company has since 2010 actively

cooperated with the Senior Citizens’ Work Committee at different places in promoting

commercial accident insurance for the old people, bringing into full play the risk

protection and economic compensation mechanism of commercial insurance, and made

many attempts in establishing the personal risk protection mechanism for the old people.

In 2015, the old age insurance of the Company benefited more than 20 million people

throughout the country.

II. Providing Insurance Protection and Career Development

Opportunities for University-Graduate Village Officials

To make full use of our own strength to support the Party and the Government’s policy

of encouraging college graduates to take office in the countryside, our Company has

vigorously pushed forward the work of insurance for university-graduate village

officials (“UGVO”) and provided such village officials with major disease and personal

accident comprehensive insurance. By the end of 2015, our Company had underwritten

insurance for 120,106 university-graduate village officials, accounting for 70.13% of all

such officials eligible, and we accepted a total of 36 claim cases involving personal

accident, medical emergencies, critical illness and death, and paid an estimated

indemnity of CNY7,447,750.

The Company believes that we are duty-bound to absorb the UGVOs whose term of

office in the countryside has expired, as part of our effort in actively fulfilling our

corporate social responsibility. Under the great support and guidance from the

Organization Department of the CPC Central Committee and the Group Company, the

Company launched a special recruitment and cultivation program in 2010 to absorb

UGVOs whose term of office has expired to serve in our grassroots units. Currently, we

have cumulatively absorbed more than one thousand such village officials and through

56

the special cultivation program, we are committed to fostering them into grassroots

management backbones. In their career design, we have focused on operation

management; and in the arrangement of their posts, we have given them a higher

starting point. We have adopted a level-by-level selection and appointment method and

will make exceptions in promoting those with outstanding performance. Our efforts

have been fully affirmed by the Central Organization Department, CIRC and the local

Ministry of Organization departments.

In 2015, we further improved the policies regarding the recruitment and training of

UGVOs who have completed their term of office in villages so that they have a clear

vision of their career prospects after joining China Life. The Company aims to retain

them through career development opportunities with practical and achievable goals.

Broadening the recruitment channel. In 2015, in addition to the special recruitment

programs for UGVOs, we opened a special passage for UGVOs in campus recruitment,

marking them out in the resumes submitted and giving them preferential treatment in

appraisal of individual qualifications. Five provincial-level branches, including Jiangsu,

Hebei and Guangdong, launched special recruitment programs for UGVOs and were

expected to recruit 39.

Providing income protection. For UGVOs recruited by grassroots companies, we have

implemented a mechanism for providing income protection during the initial stage of

their employment with China Life. In the first two years after employment, every

UGVO will receive CNY500/month of grassroots allowance from the Head Office.

Meanwhile, provincial-level branches are required to introduce complementing policies

and formulate a special subsidy plan.

Intensifying training. To accelerate the training of employees who are former UGVOs,

the Company set up a multi-level and wide-coverage training mode to give them

multi-dimensional training that includes induction training, job rotation, mentoring and

young talent cultivation so that they can change their role as soon as possible, adapt to

the working environment of the Company and ensure ideal man-and-job matching.

Case 1: Income protection policy of

Hebei Provincial Branch for UGVOs

During the two-year protection period,

each newly recruited UGVO will, in

addition to the CNY500/month of

allowance granted by the Head Office,

be given a target salary which is 30%

higher than the salary they received

when they served as village officials.

For UGVOs who have received the

annual performance review, their annual performance salary will be paid at the rate of 120% if

they do excellently, or 110% if they do well in annual review, or at the rate of 100% if they pass

the annual review.

57

Case 2: Talent development policy of Henan

Provincial Branch for UGVOs

Henan Branch holds at least two training classes each

year for UGVOs and their tutors, including “Training

Class of Tutors of New Employees” and “1+1 Training

Class for UGVOs on Secondment”, to clarify the career

development plan of “China Life employees - group

trainings - lecturers - team managers” for the UGVO

employees. So far, 60 UGVOs have become grassroots

team managers and nearly 20 have grown into members

of the leading body of county-level sub-branches or departmental deputy of city-level branches.

III. Responsible Investment

In line with the national strategy, the Company gives play to the long-term investment

advantages of insurance funds to support people’s livelihood projects and key national

projects, such as major infrastructure, transformation of shantytowns and the

urbanization drive, takes part in the reform toward the hybrid ownership of State-owned

enterprises, and works hard to build China Life’s value chain themed “Big Health and

Big Pension”. In 2015, the Company continued to strengthen the various tasks of social

responsibility investment and particularly, further expanded the scope of investment in

the fields that have a bearing on national economy and the people’s livelihood. The

projects in which we have invested covered the national key fields such as water

conservancy construction, communication and transportation, energy and power,

construction of affordable houses, and finance and insurance, and we have played an

important role in supporting the construction of national key projects and providing

protection for the people’s livelihood.

Investing in the Fields Having a Bearing on People’s Livelihood

In 2015, the Company resolutely supported the national strategy for construction of key

infrastructure and emerging industries, actively invested in the National Railway

Development Fund and the National Integrated Circuit Industry Investment Fund, which

serve as investment vehicles for funding railway construction projects in central and

western parts of China and IC-related industries. Meanwhile, the Company responded to

the requirements of the Central Government for the financial industry to serve the real

economy and went all out to support the shantytown renovation projects undertaken by

local governments. Some of these projects have been successfully launched in Beijing.

Participating in the Mixed Ownership Reform of State-owned Enterprises

In 2015, the Company made successful investment in the Postal Savings Bank of China,

becoming its largest domestic strategic investor and the only insurance institution

shareholder. Meanwhile, we continued to grasp the investment value resulting from the

reform of State-owned enterprises, focus on the potential investment opportunities in

new economic fields, such as the Internet and Internet+, to push on the transformation

and upgrading of economic structure with the investment of insurance funds.

58

Gradually Creating the “Big Health and Big Pension” Industrial Value Chain of

China Life

In 2015, the Company accelerated its entry into the “big health” industry chain. The Big

Health Fund of China Life was approved by CIRC, marking the substantial entry of the

Company into the professional field of healthcare and genetic testing. In the meantime,

we made active explorations at the business mode of “insurance + medical care” to

complement each other with the advantages in brand, resources and platform

construction and integrate advantageous medical resources with the primary business of

insurance in a number of fields.

On December 31, 2015, the Company won the bid for a land plot in Haitang Bay, Sanya.

The successful bid for this land plot along China’s national coast marks a big step

forward for China Life in forming its strategic layout of old-age communities featuring

“3 locations along one line with green environment all year round”, and in fulfilling its

commitment to provide clients with high-quality medical, leisure and health

preservation services in the future.

IV. Suppliers

The Company has always taken the fulfillment of social responsibility as the basic

requirement for procurement and in the process of procurement, we have strictly

observed the national bidding laws and regulations and the Company’s centralized

procurement system rules to ensure that the workflows are legal and compliant and the

procurement information is open and transparent.

Our Company has successively formulated the Measures for Management of

Centralized Procurement Reviewers, the Measures for Management of Centralized

Procurement and the (Tentative) Measures for Management of Suppliers to strictly

control supplier qualifications and require that the products we choose are

environment-friendly and energy-efficient and the suppliers we select have good credit

standing and sound financial and accounting reporting rules, and be free from bad

records in tax payment or social security funds contribution according to law.

To make the management of centralized procurement more standard and efficient and

improve the work efficiency thereof, the Company developed a centralized electronic

procurement system in 2012 and became the first to realize green “e-procurement” in

the insurance industry. Such electronic system can not only help the Company to

standardize the procurement procedures and finally realize paperless operations, but

also facilitate understanding from all dimensions of the corporate-wide procurement

activities and the supervision and control of CSR fulfillment status in the procurement

process.

In 2015, the Company revised the Measures for Management of Centralized

Procurement and the Regulations on Management of Centralized Procurement

Workflows to ensure compliance of the procurement process and standardize the

59

management of suppliers under central procurement. We also drew up and issued the

Centralized Procurement Catalogue and Procurement Authority.

V. Salespersons and Intermediaries

As of December 2015, the sales team members of the Company for personal insurance

channels reached 979,000. We have always taken salespersons as our most important

business partners and strived to protect their rights and interests, care for their growth

and train and supervise them to fulfill social responsibility.

Providing product support. The Company developed the relevant products targeted at

the social hotspots and strengthened training related to product discussion, packing and

development to enhance the salespersons’ product cognition. In 2015, the Company

introduced the collector’s edition of new Ruixin, Health Pack and Ru Yi Sui Xing

products in a bid to strengthen the self-developing capability of its workforce and

enhance the ability of its salespersons to describe products.

Optimizing the training mode. By pushing ahead such training method as

“mold-pressing training”, the Company effectively enhanced the salespersons’ selling

and service skills.

Building up the exchange platform. By holding the annual “Elite Summit” and “Elite

Forum” and summing up experience, we refined and shared the experience of elite

salespersons corporate-wide to reproduce their skills and build up the benchmark.

Optimizing the financial security system. In 2015, we revised the “Administrative

Measures for Insurance Salespersons” and the “Security System of Insurance

Salespersons”. The former optimized the standard for payment of allowances for rookie

salespersons and extend the time for payment thereof, and the latter expanded the

coverage of salespersons in terms of endowment benefit and increased the amount of

benefit under accidental and medical insurance.

In the cooperation with banking and postal agencies, the Company has urged its partners

to fulfill their social responsibility and abide by laws. To address the loopholes found in

the inspection of the relevant agreement for cooperation in insurance agency business

by local regulatory authorities in 2015, the Bancassurance Department of the Head

Office improved and supplemented the cooperation agreement with the head offices of

the relevant and major cooperation channels by adding such terms as “Management of

Authenticity of Client Information” and “Anti-Money Laundering”.

VI. Win-Win Strategic Cooperative Partnership

Under the guidance of the Company’s overall development strategy, we have actively

and widely unfolded external cooperation. From the angles of sharing resources and

complementing each other’s advantages, we have mainly selected the large enterprises

and institutions with good social images and similar social responsibility concept to

establish long-term strategic cooperative partnership so as to accomplish win-win

60

cooperation and common development.

In 2015, we brought the social management functions of insurance into play through

external cooperation to provide consumers with more diversified and complete financial

insurance services. We went into cooperation with the government of Changsha city in

Hunan, Shunfeng Express and China Unicom Hunan Branch and signed a strategic

cooperation agreement with the Postal Savings Bank of China. At the same time, we

continued to promote the in-depth cooperation with China Post, China Telecom, China

Unicom and Xinhuanet to jointly carry out the public-good programs by virtue of their

strengths and brand images in their respective field.

VII. Supporting Research and Cooperation in the Industry

In 2015, the Company took an active part in the project of compiling the third life table

of the insurance industry, which has great significance for the development of the

industry and the national economy. As the leader unit of the project team, the Company

led the major companies of the industry in completing the tasks of various stages of the

project, including formulation of the data plan, construction of data platform, collection,

processing and analysis of data, compilation of life table. Sparing no efforts in

contributing data, manpower, actuarial techniques and analysis experience, we reported

134 products that covered all the main products of the Company and submitted the data

of 130 million insurance policies, accounting for about 40% of the project. Furthermore,

we developed and utilized the technology of text analysis of death causes in claim

settlement and selflessly shared the precious experience and actuary techniques we have

accumulated with our counterparts, contributing our bit to the successful completion of

the third life table.

The Company actively involved itself in the building of China Risk Oriented Solvency

System (C-ROSS), closely followed the development trend of international solvency

monitoring, organized the compilation of the transitory period report and took part in

the discussions, feedback and quantitative testing of related projects, making positive

contributions for the reform of the major regulatory systems of the industry.

Moreover, we also took part in the research project “Clients of Life Insurance Industry”

organized by CIRC. As a core member of the project team, we defined, counted,

classified and described the characteristics of the valid clients of the industry for the

first time from the perspective of the industry, collected, analyzed and sorted out the

data reflecting the existing client capacity of the industry, the demand characteristics of

clients, their ages and features of their regional distribution, forecasted the future

development potentials of the clients of the industry. The purpose is to guide the product

design direction and tenet of the industry on the basis of existing characteristics of

clients and their demand and enrich the content of the services for them. The relevant

research conclusions and forward-looking proposals have been recognized and praised

by the regulatory authority.

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Part V Environment and Society

I. Environmental Protection

We have actively responded to the national call for energy efficiency and emissions

reduction (EEER), called on all employees to take actions in support of energy

efficiency and environmental protection, and strived to reduce energy consumption and

carbon emissions in operations by saving energy, reducing waste, optimizing process

and using new environmental protection materials.

In 2015, the Company formulated and issued the “Temporary Measures for

Management of Energy Saving and Emission Reduction” to further standardize

corporate-wide energy-using acts and require all branch and subsidiary

organizations to report the fulfillment of environmental responsibility indexes to the

Head Office regularly each year, establish the mechanism of collecting and

counting environmental responsibility information, standardize their use, repair and

scrapping of the measuring devices of water, electricity, gas and heat.

In 2015, we mobilized all employees to take actions in support of energy efficiency and

environmental protection. We required all employees to begin with trivial things: save

energy, reduce waste, turn off light when leaving, save water and put to an end the

practices of “ever-burning lamp” and “ever-running water”; try to use electronic

documents and advocate printing on both sides to save paper; carry water glasses with

them to reduce the drinking of bottled water; cherish grain to keep down the “waste on

the tongue tip”; and when organizing meetings and trainings, paste and hang fewer

slogans and banners, place fewer flowers and green plants, give out no office stationery

and reduce the paper materials to consciously practice the diligent and thrifty style of

office work and actively foster the corporate culture of saving by everybody in all

respects. We also strived to reduce energy consumption and carbon emissions by

optimizing process, creating innovative technology and using new environmental

protection materials. We cut down costs and expenses by reducing meetings and events,

downsizing the meetings and reducing the quantity of paper documents. We fully

carried out office automation. For all meetings of the Board of Directors, the Board of

Supervisors and the special committees, the Company has adopted electronic meeting

agendas and remote review of agendas, remote handling of meeting affairs and remote

query of meeting files, and tried to reduce the use of paper publicity materials and paper

cups in order to sharply cut down the consumption of paper materials. By setting up the

R&D Center and the Data Center, the Company established the centralized operation

service system and realized centralized R&D and maintenance, and standardized

services, with the daily average online users exceeding 100,000 persons and daily

handling of batch operations exceeding 100 million, thus greatly reducing carbon

emissions while improving efficiency. We use our best efforts to minimize the use of

62

paper promotion materials and effectively cut the consumption of paper caused by

paper checks, correspondence and insurance policies by using new electronic

delivery means such as electronic insurance policies, WeChat, official website and

APP. In 2015, we developed 203 types of short-term electronic insurance policies

and applied the electronic policies of student insurance to 37.24 million people,

accounting for 50% of the total student insurances. We further expanded the

application of electronic invoices. Take Beijing Branch for example, in 2015, 1.16

million electronic invoices were issued, accounting for as high as 79.4% of the total

invoices.

With regard to the management of the Head Office building, we established the

energy-efficiency management system, rolled out numerous management measures,

such as control over when to switch on and off the lightings and inspection tours on

energy efficiency, adopted technical measures such as elimination of low-efficiency

lighting products, renovation of air conditioners and renovation of the

building-controlling system; the Head Office, while ensuring energy supply for all work

assignments, strictly controlled the total amount of energy consumption to fulfill the

energy-saving management responsibility.

II. Serving Community

On the basis of

successfully holding the

national children drawing

event for four consecutive

years from 2011 to 2014,

China Life and CFLAC

Fine Arts Center jointly

held the fifth national

children drawing event in

2015 with the theme

“Joining Hands with

China Life with Focus on

Filial Duties and Benefaction” to facilitate the development of children’s art education

and to promote cultural development and the construction of spiritual civilization. The

number of persons having signed up for

the event reached 1.5 million, and a total

of 130 of them won the National Excellent

Works Award, 270 won the National

Selected Works Award and 31 instructors

were appraised as Excellent Children Art

Instructors. On November 28, 2015, the

national excellent works exhibition and

the prize-giving ceremony were held in

63

Guangzhou and over 150 award-winning works were exhibited to the public. The

award-winning works from across the country were also compiled as books and

published by the CFLAC Press.

We have encouraged and supported the employees and salespersons of branch

organizations at all levels to actively participate in the local community construction

and strive to repay the society through such activities as poverty alleviation, subsidizing

students and environmental protection. The following are a summary of the activities by

some of our branch companies:

Fujian Provincial Branch: On the

Mother’s Day in 2015, Fujian

Provincial Branch donated

CNY500,000 to the provincial

Women’s Federation for use in its

activity entitled “Looking for Most

Beautiful Families in Fujian Province”,

which selected 100 “Most Beautiful

Families” to spread the culture of filial

piety and harmonious atmosphere to every family of the province. The provincial

branch also donated an aggregate of CNY215,000 in two years running to Xinggui

Village, Xiaochi Town in Xinluo District of Longyan City for use in improving the

living and leisure environment of villagers and construction of infrastructure.

Anhui Provincial Branch: On the Double Ninth Festival in 2015, Manager Liu

Xiaoling of Dingyuan Sub-branch led the employees to greet the seniors without family

in Cangzhen Nursing Home, Dingyuan County. The team carefully prepared thermal

underwear, living goods, food and other easements for every senior, chatted with them

and combed their hair.

Jiangsu Provincial Branch: Suzhou Branch takes an active part in local old-age

undertakings and donated CNY20,000 to Suzhou Red Sunset Health Club to support the

event “Our Holiday ● Double Ninth Festival --- the 9th

Culture Week of Suzhou for the

Old” and carry forward the traditional virtue of “respect and love for the old” of the

Chinese nation. Taizhou Branch donated 48 TV sets and 2 computers to Taizhou

Welfare Center for use in the “Smart Special Care Room” that would soon be

commissioned to provide support and wellbeing for the happy late life of the old under

“special care”.

Shandong Provincial Branch:

Xinzhou Branch launched the public

good activity of “green silk ribbon”,

which saw the participation of a large

number of managerial personnel,

employees and marketing partners and

raised some CNY100,000 of funds,

sending care and warmth of China

64

Life to more than 10 gerocomiums, students of the schools in impoverished

mountainous regions and needy employees in Xinzhou.

III. Public-Good Donations

We have persistently committed ourselves to public-good activities such as disaster

relief, subsidy for students and poverty alleviation through China Life Charity

Foundation and the branches and subsidiaries in different places. Since 2003, our

Company has cumulatively donated more than CNY400 million in funds, made

donations funding the construction of 69 schools and 97 health centers (stations),

trained 300 rural doctors from all over the country and provided medical assistance for

more than 100 poverty-stricken patients of major diseases. In 2015, our Company

continued to grant donations of CNY30 million and the Foundation externally donated

more than CNY36 million for the whole year. The donations were used mainly to

support a number of poverty alleviation projects, e.g. purchase of ambulances for

poverty-stricken areas, “screening of 2 cancers” and critical disease insurance for the

females in poverty-stricken areas, continued upbringing of the children orphaned in

catastrophic disasters like the earthquakes that ruined Wenchuan and Yushu, the 7th

China Life Loving Care Summer Camp and other public good initiatives.

2015 Important Public-Good Activities of China Life Charity Foundation

April 2015

Donated CNY1 million to China Women Development Foundation for use in

providing needy females with critical disease insurance against “two

cancers”.

April 2015

Donated CNY2 million to Hubei Provincial Health and Family Planning

Commission for use in providing insurance against critical diseases and

accidents for the families bereft of their only child.

May 2015

The project of assisting the reconstruction and supporting the orphans in

earthquake-hit Ludian area was formally established and CNY10 million was

allocated to the project for use in the reconstruction of 23 grassroots medical

institutions in Ludian County and Qiaojia County. CNY183,600 was

allocated to support 18 kids orphaned by the earthquake in Ludian from

August 2014 to December 2015.

May 2015

Donated CNY8 million to China Family Planning Association for the

assistance of the families losing only child and other maternity care projects

in 48 pilot areas nationwide.

August 2015 Held the 7

th China Life Loving Care Summer Camp activity attended by 39

representatives of orphans.

August 2015 Donated CNY2 million worth of ambulances to part of the poverty-stricken

areas in Heilongjiang Province.

August 2015

Donated CNY10.1 million as poverty alleviation funds to Yunxi County in

Hubei and Tiandeng County and Longzhou County in Guangxi, the counties

assigned to China Life Group for poverty alleviation.

65

August 2015 Donated CNY551,340 to the “Basketball Season of Yao Foundation Hope

Primary Schools” to support the activity.

August 2015

Donated CNY2 million to China Police Martyrs and Heroes Foundation for

use in setting up “China Life Rescue Fund” to help the police officers who

are disabled, critically ill and very poor.

Case: About China Life Charity Foundation

To carry out the public-good programs more professionally and sustainably, on June 16, 2007,

our Company initiated and founded Guoshou Charity Foundation --- the first non-public

foundation in the domestic financial industry registered with the Ministry of Civil Affairs. The

purpose of the Foundation is to “support public-good charity programs and promote social

harmony and development”. The scope of subsidization includes: carry out charity activities of

helping the poor, alleviating poverty, relieving disaster and assisting the disabled, help the

social vulnerable groups to improve survival conditions and improve development ability;

subsidize and reward individuals and organizations that have made outstanding contributions in

promoting medical and health development and in carrying forward the good social customs;

and subsidize environmental protection and development of the educational cause. In March

2010, upon the approval of the Ministry of Civil Affairs, Guoshou Charity Foundation was

renamed as China Life Charity Foundation.

Since its founding, China Life Charity Foundation has externally donated over CNY180 million

and successively launched public-good programs such as health new village project and

program for bringing up orphans from Wenchuan Earthquake, Yushu Earthquake and Zhouqu

Mudslide; sponsored public-good activities such as China Life Loving Care Summer Camp,

Photo Exhibition of Wenchuan Earthquake Orphans, and “Relaying Loving Care and Setting

Sail Dreams --- Making the Dreams of Earthquake Orphans Come True”; and timely

participated in the donations for grave disasters such as low temperature, sleet and frost in the

south, Wenchuan Earthquake, Typhoon Morakot in Taiwan, Yushu Earthquake, Zhouqu

Mudslide and Ya’an Earthquake. All these activities have well benefited the society and

received wide social recognition.

(I) Assisting and Bringing up Orphans in All-Directional Manner

Since the occurrence of Wenchuan Earthquake in 2008, our Company has continuously

carried out the project of “assisting and bringing up orphans resulted from serious

disasters” through China Life Charity Foundation. We have provided long-term living

support for the 1,101 orphans caused by the disasters such as Wenchuan Earthquake,

Yushu Earthquake, Zhouqu Mudslide and Ludian Earthquake. We have also helped

orphans from the disaster-stricken areas to maintain their physical and psychological

health through activities such as one-on-one support by China Life employee volunteers

and the annual loving care summer camp.

During August 11 to 16, 2015, the seventh session of China Life Loving Care Summer

Camp was successfully held in Nanchang and Ji’an of Jiangxi Province. Accompanied

by the China Life volunteers, 39 representatives of the orphans from the

disaster-stricken areas of Sichuan, Yushu of Qinghai and Zhouqu of Gansu went on a

66

sightseeing of Jinggang Mountains, August 1 Nanchang Uprising Memorial Museum

and Tengwang Pavilion, and had a get-together with the China Life volunteers. In the

activities, the children broadened their vision, increased knowledge and experienced the

care and warmth from the whole society.

Case: About the project of assisting and bringing up orphans

After the occurrence of Wenchuan Earthquake on May 12, 2008, to enable all the children who

had lost their parents in the earthquake to grow healthily, China Life solemnly announced on

May 14 that it would fully bear the basic living allowances for these orphans till they reach the

age of 18 through China Life Charity Foundation. On November 11, 2008, the Ministry of Civil

Affairs and China Life Charity Foundation officially signed the cooperation agreement on the

“China Life Project of Assisting and Bringing up Wenchuan Earthquake Orphans” in Beijing.

The Foundation continued to rear the kids orphaned by Yushu earthquake and Zhouqu mudslide

in 2010 and, in 2014, began to rear the orphans from earthquake-hit Ludian area. As of

December 2015, China Life Charity Foundation has borne the monthly basic living allowances

of CNY600 for each of the aforesaid 1,101 orphans. The allowances were paid to these orphans

through entrusted Ministry of Civil Affairs offices from December 2008, April 2010, August

2010 and August 2014 respectively until each orphan grows to the age of 18 or the day of being

adopted. For the past seven years, under the guidance and support from the Ministry of Civil

Affairs, China Life Charity Foundation has honored its promise to the children and the society,

conscientiously performed its obligations and paid total allowances of CNY31,157,400.

In May 2009, to show long-term and on-going care for the orphans in living and spirit, the

Foundation launched the “Loving Care Act of Assisting and Bringing up Orphans” program,

including one-to-one support between China Life volunteers and the orphans and the annual

event of loving care summer camp. Through organizing regular and consolation visits and

holding summer camps, the program aims to learn about and follow up on their lives and

growth to as to ensure that they can complete their studies without worries and that they can

feel the warmth of the big social family and grow healthily and happily. So far, seven sessions

of Loving Care Summer Camp have been successfully held in Beijing, Shanghai, Xi’an, Dalian,

Xiamen, Shenzhen and Jiangxi, and 284 orphans from the disaster-stricken areas of Wenchuan,

Yushu and Zhouqu, under the accompany of China Life volunteers, have spent time in the

summer camp where they can broaden vision, obtain knowledge and have fun.

67

(II) Supporting Educational Cause

The Company has persistently put in manpower, material and financial resources to

commit itself to the activities of subsidizing students and supporting teaching, and we

have donated funds for the construction of 69 primary and secondary schools around the

country. In 2015, China Life Charity Foundation donated CNY551,340 to the “Yao

Fund” of China Youth Development Foundation, for purchasing basketball stands and

other sports facilities to be distributed to the schools participating in the “2015 Yao

Fund Basketball Season of Hope Primary Schools”.

Distribution Map of the Schools Donated by China Life

The branches and subsidiaries of Our Company in different places have also actively

particpated in supporting the local eduation-supporting cause. The following are a brief

introduction of the activies by some of our branch companies:

Anhui Provincial Branch: On November 17, 2015, Chuzhou Branch joined the

Women’s Federation of the city in launching the pair-up care activity for stay-at-home

children entitled “share happy sunshine and grow healthily in happiness”. The branch

donated schoolbags, motivational books, stationery cases and food to the 31

representatives of such children on site and provided 60 children with stay-at-home

children insurance with an insured amount of CNY75,000 each, totaling CNY4.5

million, to pass on the care of China Life.

Case: Chuzhou Branch: Activity of “10-One” care for stay-at-home children

Under the principles of “honesty, sincerity, true love and true action”, Chuzhou Branch enables

68

the stay-at-home children to experience the harmony of the big social family through the

activity of “10-one” care for them, i.e.: 1. One insurance for their security. The Company will

take out accidental and medical insurance for 100 such kids to give them more security; 2. One

schoolbag to assist them in their studies. The branch will purchase 100 schoolbags to cause

them to focus more on their studies; 3. One new clothe. The care for 100 such kids is also

mirrored by the purchase of 1 new clothe for everyone of them before the arrival of winter to

enable them to feel the warmth of love; 4. One phone call that keeps them company in their

growth. The caregiver of each kid will place a phone call each week out of concern for their

healthy growth; 5. One book for intellectual progress. One book will be given to each of the

kids for them to grow in studies; 6. One game for them to enjoy happiness. One group game

activity is organized each year for the kids to feel the affection and happiness; 7. One dinner

party, which is organized every half a year for the kids to experience the warmth of family and

affection; 8. One knowledge-gaining visit. Each year, the kids will pay one visit to the branch as

an eye-opening experience; 9. One horizon-broadening outing. Each year, the volunteers will

take the kids on an outing to let them see the wonderful world outside; 10. One get-together for

more friendship. Before the Spring Festival of each year, the Company will hold a get-together

for the kids to experience the harmony of the big social family.

Fujian Provincial Branch: In June 2015, Fuzhou Branch donated CNY300,000 to

Fuzhou Population Welfare Foundation for use in the joint activities of “Golden

Autumn Student Aid” and “Warmth for Needy Families”. Its trade union joined the

Moral Education Center of the Offices Working Committee of the provincial

Department of Education in carrying out the activity of book donation and student aid

for 5 years running and was awarded the honorary title of “Model Unit” by the

provincial education authorities together with a plaque of honor. In 2015, the branch

donated a total of CNY1,113,600 to China Next Generation Education Foundation,

Population Welfare Foundation, Family Planning Association and the charity

federations in various places and organized nearly 2000 employees and clients to take

part in the donation of goods and money.

Sichuan Provincial Branch: In 2015,

Sichuan Branch carried out the summer

camp activity under the theme “Love &

Home” for the growth of stay-at-home

children. A total of 40 children from

needy families took part in the 5-day

event in Kongping Township in Yucheng

District of Ya’an City, which was

designed to help the children learn to

establish and develop equal, united, friendly and mutual-aid interpersonal relations and

provide them with a happy and meaningful life in their summer holiday.

Shanxi Provincial Branch: On August 18, Yangquan Branch donated CNY100,000 to

help those high school graduates who are excellent in both character and learning but

from needy families fulfill their dreams about university. Besides, during the entrance

examinations of high schools and universities each year, the branch will provide free

drinking water for the students and their parents in the examination venues throughout

the city.

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Shaanxi Provincial Branch: Hanzhong Branch took an active part in the activity of

“2015 Charitable Trip into Qinling, Shaanxi to Aid Needy Students” and donated some

10,691 books, 2,000 winter clothes and 150 pairs of winter shoes to the students of

Xinminsi Middle School in Hantai District and the pupils of the Central Primary School

of Huaishuguan Township, Yang County.

(III) Assisting Poverty-Stricken Areas and the Vulnerable Groups

It is our Company’s proud tradition to actively carry out activities of helping the needy

and spreading loving care in light of the actual conditions of the poverty-stricken areas.

We have organized and implemented various forms of donations and assistance

activities for poverty-stricken areas through China Life Charity Foundation and

nationwide service networks.

In 2015, the Company donated, through China Life Charity Foundation, CNY1 million

to China Women Development Foundation for use in providing needy females with

critical disease insurance against “two cancers”, CNY2 million worth of ambulances to

the poverty-stricken areas in Heilongjiang Province and CNY10.1 million as poverty

alleviation funds to Yunxi County in Hubei Province and Tiandeng County and

Longzhou County in Guangxi Zhuang Autonomous Region, the counties assigned to

China Life Group for poverty alleviation. It took part in 10 local major poverty

alleviation projects and helped poverty alleviation through the following 5 means:

poverty alleviation via petty insurance, poverty alleviation via education, poverty

alleviation via supporting unique industries, support for frontier trade, and poverty

alleviation via public-good programs.

Supported

Areas

Donated

Funds

Use of Funds

Yunxi

County of

Hubei

CNY3.5

million

The project of petty insurance for the poor; the project of

performance guarantee insurance for mortgage loan; the bridge

and road project for the Central Kindergarten of Dianzi Township;

the sports ground construction project of Wudingping Primary

School in Guanyin Township; the project of building Taizhanzi

Bridge for the second villagers group of Tizi Village in

Chengguan Township; the project of building Lijiadayuan Bridge

for Shitahe Village in Ma’an Township; the project of building

Long’an Bridge on Liangcha River in Liulang Township; the

project of building a service center for the Party members and

masses of Youshuigou Village in Anjia Township; the project of

constructing the Central Welfare Home in Tumen Township; the

project of constructing the Central Welfare Home in Huaishulin

Township; the project of expanding the Central Welfare Home in

Hejia Township.

Tiandeng

County of

Guangxi

CNY3.3

million

The project of petty insurance against harm for migrant workers;

the project of infrastructure construction and pitaya planting

industry of Nanling Village in Tuokan Township; the project of

constructing the pepper park of the Modern Characteristic

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Agriculture (Core) Demonstration Zone.

Longzhou

County of

Guangxi CNY3.3

million

The project of petty insurance against accident for villagers; the

project of Gaoneitun ecological agriculture of Wude Village in

Wude Township; the project of mulberry growing and sericulture

of Kejia Village in Wude Township; the bee-keeping project of

Binying Village in Binqiao Township.

Our branches and subsidiaries in different places have also actively participated in the

local poverty alleviation work, and the following are a brief introduction of the activities

organized and undertaken by some of our branch companies:

Fujian Provincial Branch: In 2015, the Company launched the public welfare activity

of “Filial Piety First” and donated CNY19,000 worth of edible oil to the needy families

of 50 “Spring Bud girls” in Luoyuan. In the year, the organizations of the province at all

levels donated CNY1,577,600 to the family planning households with financial

difficulties, households receiving minimum subsistence allowances and the needy

families of “Spring Bud girls”.

Gansu Provincial Branch: Over the years, the branch organized multiple discussions

and made scientific plans to really help the designated villages for poverty alleviation.

On the basis of the CNY2,013,000 of assistance funds donated cumulatively in the

previous three years, it further strengthened the effort in 2015 by injecting

CNY917,4000 to assist in the transformation of old villages, industrial development,

purchase of agricultural materials and provide grant-in-aid for the students in technical

secondary schools and universities.

Sichuan Provincial Branch: On February 5, the eve of the Spring Festival, Deputy

General Manager Xiu Bin of Sichuan Provincial Branch again came to visit Gaojiagou

Village, the designated target of aid of the branch. The branch donated about

CNY100,000 to the village for use in building a cultural square and offering relief to the

needy families before the festival and provided risk insurance with a total insured

amount of CNY2 million for the villagers.

(IV) Showing Loving Care for Families Having Lost Their Single Child

Currently, the parents of the first generation of single children are gradually turning old,

and the social problems of such parents, caused by death of single children due to

illness, natural disasters or other reasons, such as problems concerning pension, medical

treatment, living care and expression of appeals, are emerging and increasingly

attracting the attention of the general public. To improve the life quality and living

environment of the loss-of-single-child families, China Life Charity Foundation has,

commencing from 2013, donated CNY8 million each year to China Family Planning

Association for maternity care projects including the assistance of the

loss-of-single-child families in 48 pilot areas nationwide. This has deepened the pilot

scope and exploration of the assistance projects of China Family Planning Association

for the special FP families. After nearly two years’ practice and exploration and in light

71

of the actual conditions, different local governments have rolled out a series of

assistance measures in forms of economic subsidy, living support, psychological

counseling and pension care, and trained a number of social workers familiar with the

skills of psychological counseling and grief counseling. Most of the target groups have

walked out of the haze of losing single child and once again integrated themselves into

the community and society. Such measures have produced good social effect. In 2015,

the Foundation continued to donate CNY8 million to the “Project of Exploring Special

Family Assistance Modes” of China Family Planning Association. Centering on helping

solve the difficulties of special FP families, it innovated on the mode of social services,

promoted the establishment of the social support system for caring for the special FP

families, and improved the life quality and living environment of the special FP

families.

Our branches in all places also actively supported the local families bereft of their only

child, including Yunnan Provincial Branch that donated CNY2.7 million to the local

Association of Family Planning, Guangdong Provincial Branch that donated CNY1.5

million, Guizhou Provincial Branch that donated CNY1 million (allocated pro rata in 5

years of time) and Shandong Provincial Branch that donated CNY131,600, which were

used to support “Maternity Care Initiative” and other public welfare programs.

IV. Volunteer Activities

The Company founded China Life Volunteers Association in December 2008, which

aims to encourage employees and salespersons to provide the society with volunteer

services by organizing and guiding corporate-wide volunteer service activities. In recent

years, we have continuously pushed ahead the China Life volunteer programs and

achieved significant results. The branches and subsidiaries in different places have set

up branch offices of the Association and in light of the local actual conditions, actively

participated in the volunteer services such as environmental protection, helping the

weak and the disabled, giving relief aid to the needy, community construction and

large-scale activities. The volunteer spirit has become an important part of the

Company’s corporate culture.

In the course of organizing the seventh session of China Life Loving Care Summer

Camp, the Head Office drew up a volunteers work scheme to guide the branch

companies to do well in the organization of summer camps volunteers. The scheme

covered such contents as volunteer selection standards, recruitment process and work

duties as well as volunteer management and the safety instructions and emergency plan

for summer camps. The branch companies of Jiangxi, Sichuan and Gansu respectively

dispatched leaders and volunteers to participate in the daily management of the campers

and directly take care of the children. Their earnest fulfillment of duties reflected their

high sense of responsibility and excellent volunteerism.

In light of the local actual conditions, the branches and subsidiaries held a series of

colorful volunteer activities.

72

Hebei Provincial Branch: On June 7 ~ 8, 2015, Hebei Provincial Branch mobilized the

volunteers within its subordinate organizations across the province to take actions and

provide help for both the students taking the university entrance examination and their

parents. They put up sunshades and placed seats before the gates of major examination

venues to provide a temporary rest place for the parents waiting anxiously outside. They

also issued free bottled water for the students and parents and prepared examination

articles, e.g. pencils and erasers, for the examinees just in case. Such service points set

up by the Company in Hebei Province exceeded 70 and were manned by nearly 600

volunteers, who made available all types of services to the examinees and their parents.

Tianjin Branch: On the morning of August 13, 2015, after hearing about the 8.12

devastating explosion, some 100 volunteers of China Life living in Binhai and nearby

places spontaneously formed a team to support the frontline rescue work. Split into

batches, they went to the hospitals accepting the injured people to assist in registering

the information thereof, appeasing them, issuing materials, help the injured persons

without accompaniment of family members to receive timely and proper treatment, lend

a hand in change of clothes and delivery of meals for those who were so seriously

injured as to be unable to take care of themselves in daily life. Meanwhile, Tianjin

Branch set up a help station in Taida No. 2 Primary School to find out about the needs

of the police officers, the injured people

and the citizens relocated to the

settlement places for living materials.

Its volunteers joined their counterparts

from all walks of life in giving out

masks, clothes, water, food, toilet paper,

tents, chemical protective clothing and

other badly-needed supplies. They

worked hard to provide adequate

backup support for the rescuers fighting

at the forefront and provide basic life

support for the injured people and the

citizens.

Fujian Provincial Branch: In 2015, the trade union of the branch company paired up

with Tangbian Community in Wenquan Sub-district, Gulou District of Fuzhou City

under the theme of “creating a civilized unit and building a harmonious society” to

provide diversified volunteer services and jointly construct a civilized community.

73

GRI Index

Sequence

of

Indicator

Content of Indicator Degree of

Disclosure Page

Strategy and Analysis

1.1

Statement from the most senior

decision-maker of the organization about the

relevance of sustainability to the organization

and its strategy.

Full 5

1.2 Description of key impacts, risks, and

opportunities. Partial 7, 14

Organizational Profile

2.1 Name of the organization. Full 1

2.2 Primary brands, products, and/or services. Full 8

2.3

Operational structure of the organization,

including main departments, operating

companies, subsidiaries and joint venture

enterprises.

Partial

8

2.4 Location of organization’s headquarters. Full 8

2.5

Number of countries where the organization

operates, and names of countries with either

major operations or that are specifically

relevant to the sustainability issues covered

in the Report.

Full 8

2.6 Nature of ownership and legal form. Partial 8

2.7

Markets served (including geographic

breakdown, sectors served, and types of

customers/beneficiaries).

Partial

8

2.8 Scale of reporting organization. Full 8

2.9

Significant changes during the reporting

period regarding size, structure, or

ownership.

Partial

8

2.10 Awards received in the reporting period. Partial 9

Report Parameters

3.1 Reporting period (e.g., fiscal/calendar year)

for information provided. Full 2

3.2 Date of most recent previous report (if any) Full 2

74

3.3 Reporting cycle (for example, annually or

biennially). Full 2

3.4 Contact person for questions regarding the

Report or its contents. Full 2

3.5 Process for defining report content. Full 2

3.6

Boundary of the Report (e.g., countries,

divisions, subsidiaries, leased facilities, joint

ventures, suppliers). For details, see GRI

Border Regulations.

Full 2

3.7 State any specific limitations on the scope or

boundary of the Report. Full 2

3.8

Basis for reporting on joint ventures,

subsidiaries, leased facilities, outsourced

operations, and other entities that can

significantly affect comparability from

period to period and/or between

organizations.

Undisclosed

3.9

Data measurement techniques and the bases

of calculations, including the assumptions

and methods on which various estimations

are based for preparing indicators and other

information.

Undisclosed

3.10

Explanation of the effect of any

re-statements of information provided in

earlier reports, and the reasons for such

re-statement (such as merger/acquisition,

changes in benchmark year/period, changes

in business nature and measurement

method).

Undisclosed

3.11

Significant changes from previous reporting

periods in the scope, boundary, or

measurement methods applied in the Report.

Undisclosed

3.12 Table identifying the location of the Standard

Disclosures in the Report. Full 58

3.13 Policy and current practice with regard to

seeking external assurance for the Report. Undisclosed

Governance, Commitments and Stakeholders Engagement

4.1

Governance structure of the organization,

including committees under the highest

governance body responsible for specific

tasks, such as setting strategy or

organizational oversight.

Full 13

4.2 Indicate whether the Chair of the highest Undisclosed

75

governance body is also an executive officer.

4.3

For organizations that have a unitary board

structure, state the number and gender of

members of the highest governance body that

are independent and/or non-executive

members.

Undisclosed

4.4

Mechanisms for shareholders and employees

to provide recommendations or direction to

the highest governance body.

Full 10, 31

4.5

Linkage between compensation for members

of the highest governance body, senior

managers, and executives (including

departure arrangements), and the

organization’s performance (including social

and environmental performance).

Undisclosed

4.6

Processes in place for the highest governance

body to ensure conflicts of interest are

avoided.

Partial 14

4.7

Process for determining the composition,

qualifications, and expertise of the members

of the highest governance body and its

committees, including any consideration of

gender and other indicators of diversity.

Undisclosed

4.8

Internally developed statements of mission

or values, codes of conduct, and principles

relevant to economic, environmental, and

social performance and the status of their

implementation.

Partial 9, 11

4.9

Procedures of the highest governance body

for overseeing the organization’s

identification and management of economic,

environmental, and social performance,

including relevant risks and opportunities,

and adherence or compliance with

internationally agreed standards, codes of

conduct, and principles.

Partial 13

4.10

Processes for evaluating the highest

governance body’s own performance,

particularly with respect to economic,

environmental, and social performance.

Undisclosed

4.11

Explanation of whether and how the

precautionary approach or principle is

addressed by the organization.

Partial 14, 16

4.12 Externally developed economic,

environmental, and social charters, Undisclosed

76

principles, or other initiatives which the

organization subscribes to or endorses.

4.13

Memberships in associations (such as

industry associations) and/or national/

international advocacy organizations in

which the organization:

Has positions in governance bodies;

Participates in projects or committees;

Provides substantive funding beyond routine

membership dues, or

Views membership as strategic.

This refers primarily to memberships

maintained at the organizational level.

Undisclosed

4.14 List of stakeholder groups engaged by the

organization. Full 10

4.15 Basis for identification and selection of

stakeholders with whom to engage. Partial 10

4.16

Approaches to stakeholder engagement,

including frequency of engagement by type

and by stakeholder group.

Partial 10

4.17

Key topics and concerns that have been

raised through stakeholder engagement, and

how the organization has responded to those

key topics and concerns, including through

its reporting.

Full 10

Economic Performance Indicators

EC1

Direct economic value generated and

distributed, including revenues, operating

costs, employee compensation, donations

and other community investments, retained

earnings, and payments to capital providers

and governments.

Partial 11, 50

EC2 Coverage of the organization’s defined

benefit plan obligations. Partial 30

EC3

Range of ratios of standard entry level wage

compared to local minimum wage at

significant locations of operation.

Undisclosed

EC4

Development and impact of infrastructure

investments and services provided primarily

for public benefit through commercial,

in-kind, or pro bono engagement.

Partial 12, 41, 44

EC5 Understanding and describing significant

indirect economic impacts, including the Partial 14

77

extent of impacts.

Environmental Performance Indicators

EN1 Initiatives to reduce indirect energy

consumption and reductions achieved. Partial 48

Labor Practices and Decent Work Performance Indicators

LA1 Total workforce by employment type,

employment contract, region and gender. Partial 39

LA2 Percentage of employees covered by

collective bargaining agreements. Undisclosed

LA3

Education, training, counseling, prevention,

and risk-control programs in place to assist

workforce members, their families, or

community members regarding serious

diseases.

Partial 31, 39

LA4

Programs for skills management and lifelong

learning that support the continued

employability of employees and assist them

in managing career outcomes.

Full 32, 33, 35

Product Responsibility Performance Indicators

PR1

Practices related to customer satisfaction,

including results of surveys measuring

customer satisfaction.

Full 21

PR2

Programs for adherence to laws, standards,

and voluntary codes related to marketing

communications, including advertising,

promotion, and sponsorship.

Partial 26

78

Feedback on the Report

Thank you for reading this Report. We sincerely welcome any opinions and

suggestions you may offer on this Report:

- What is your overall comment on this Report?

- What is your comment on our performance of social responsibility?

- What other information do you hope us to provide?

- What public-good activities do you hope us to get involved in the most?

- What suggestions do you have on our performance of social responsibility?

Contact Information:

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Email: zhaoxiaomei@e-chinalife.com

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