2013-01-01 05:52:25 - New Financial Services market report from Business Monitor International: "China Insurance Report Q1 2013"
Key Insights And Key Risks
The China Insurance Report considers the prospects for both life and non-life insurers in that country.
The slowing of the economy appears not to be having 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 16% through 2012. 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 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.
Full Report Details at
In the life segment, gross written premiums contracted during calendar 2011. As of November 2012, it appears that they have (just) returned to growth in calendar 2012. Challenges include the economic environment, the widely publicised restrictions on bancassurance sales that were imposed by the China Banking Regulatory Commission (CBRC) and competition from wealth management products, which are also distributed by banks. Nevertheless, the latest reports from the leading Chinese life insurance companies in relation to their operations in H112 and the first three quarters of the year suggest that they are lifting new business sales and or profitability. As is the case in the non-life segment, the life companies are introducing new products, developing new distribution channels and doing what they can to boost sales through existing channels. Several companies have indicated that they have been able to achieve meaningful growth (by some metrics and across at least some of their businesses) by developing the agency channel at a time of (sharply) reduced sales through the bancassurance channel. Meanwhile, most of the foreign companies that are active in China's life segment are growing sales and/or profitability - in many cases because they are focusing on geographic or product niches.
Over the course of 2012, the China Insurance Regulatory Commission (CIRC) has strengthened the rules governing sales by life companies (especially). This should strengthen the reputation of life insurance as a conduit for organised savings over the long-term. CIRC has also liberalised the rules governing investment by insurance companies - which will provide new opportunities at a time of low interest rates and often volatile financial markets.
Over the last quarter, BMI has made the following changes:
? The company profiles have been comprehensively rewritten and, in many cases, include comments published in late 2012 in relation to H112 and Q312. ? The latest forecasts and projections for China's economy, along with key aspects such as healthcare spending, have been incorporated.
Partial Table of Contents:
- Table: Total Premiums, 2010-2017
- Key Insights And Key Risks
- China Insurance Industry SWOT
- China Political SWOT
- China Economic SWOT
- China Business Environment SWOT
Life Sector Overview
- Asia Pacific Life Sector Overview
- Table: Asia Pacific Life Premiums, 2010-2017 (US$mn)
- China Life Sector Update
Life Industry Forecast Scenario
- Table: Life Premiums, 2010-2017
- Growth Drivers And Risk Management Projections
- Table: Insurance Key Drivers - Demographics, 2010-2017
Non-Life Sector Overview
- Asia Pacific Non-Life Sector Overview
- Table: Asia Pacific's Non-Life Premiums, 2010-2017 (US$mn)
- China Non-Life Sector Update
Non-Life Industry Forecast Scenario
- Table: Non-Life Premiums, 2010-2017
- Growth Drivers And Risk Management Projections
- Macroeconomic Outlook
- Table: China - Economic Activity, 2011-2016
- Table: China's Macroeconomic Data And Forecasts, 2010-2017
- Political Stability Outlook
- Table: Asia Pacific Regional Security Ratings
- Table: Insurance Key Drivers, Disease Adjusted Life Years, 2010-2017
- Table: China Autos Sector - Production And Sales, 2009-2016
Insurance Risk/Reward Rating
- Table: China's Insurance Risk/Reward Ratings
- Table: Asia Pacific Insurance Risk/Reward Ratings
- Major Players In China's Insurance Sector
- AEGON NV
- AIA Group Limited
- American International Group (AIG)
- China Life Insurance Co. Limited
- China Pacific Insurance (Group) Co. Limited
- Manulife Financial
- PICC Property and Casualty Co. Limited
- Ping An Insurance (Group) of China Limited
- Prudential plc
- Sun Life Financial
- Table: China's Population By Age Group, 1990-2020 ('000)
- Table: China's Population By Age Group, 1990-2020 (% of total)
- Table: China's Key Population Ratios, 1990-2020
- Table: China's Rural And Urban Population, 1990-2020
- Insurance Risk/Reward Ratings
- Table: Insurance Risk/Reward Indicators And Rationale
Full Table of Contents is available at:
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