Boston, MA -- (SBWIRE) -- 06/09/2014 -- BMI View: As of mid-2014, it is clear that China's economic is slowing . Nevertheless, most of the trends in its massive insurance sector are positive. In the non-life segment, where pricing and underwriting has been disciplined, the numbers and value of insurable risks continue to grow at double-digit rates. In the life segment, premium growth appears to be accelerating once more, after a difficult period in 2012 and 2013. In both segments, it is easy to find examples of innovation by the major companies. What is less clear, though, is whether the larger insurance companies will be able to sustain the strong growth in investment income that they have enjoyed over the last year or so.
The past slowing of the economy appears not to have had a material impact on the overall fortunes of the non-life segment, where official data indicates that premiums (including health insurance and personal accident lines) have been rising at an annual rate of around 16%. In essence, the non-life companies have responded to the more difficult economic environment by cross-selling, developing new distribution channels such as telemarketing and introducing new products. Government measures to boost usage of insurance in rural areas have also been beneficial. Particular regional markets within China have been very competitive. However, many of the leading non-life companies are actively working to boost customer service (eg with claims handling) and/or to lift underwriting profits. Looking forward, it is clear that the development of health insurance will be a key driver of growth.
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In the life segment, gross written premiums contracted during calendar 2011. As of early 2014, it is clear that they have returned to (rather strong) growth. The restrictions on bancassurance sales that were imposed by the China Banking Regulatory Commission (CBRC) remain a challenge. So too does competition from wealth management products, which are originated and distributed by the banks....
The China Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's China Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Chinese insurance industry.
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