, China
2 views

Fraught capital markets put Chinese life insurers on edge

Credit exposure has become more vulnerable to rising defaults.

The outlook appears grim for Chinese life insurers due to increasing pressure to capital market volatilities, leading to higher asset impairment, according to a Fitch Ratings report.

Credit exposure has become more vulnerable to rising defaults, but solvency has maintained its strength against the pandemic.

The sector saw a 6.9% premium growth last year notwithstanding a difficult operating environment, with premiums hiking up in H2 due to loosening movement restrictions and recovering market sentiment. Insurers have invested in more equity-type investments to boost returns and duration mismatch.

On the other hand, a smooth-sailing economy, stronger demand for health and long-term saving insurance policies will bolster business growth, the report said.

Health will still be the fastest-growing segment, which posted 13.4% YoY growth in 2020 against 5.4% in traditional life insurance.

The ability to re-emphasise sustainable value-driven growth will set apart the more robust insurers from others under even more competitive market conditions. A strategic product approach and distribution capabilities drive long-term profitability, instead of merely boosting premium volume at the expense of margin enhancement.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Insurance Asia in your inbox

Aussie PM frets about sustainability of disability insurance scheme

The growth in payment per participant was due to inconsistent information, he said.

China Taiping Insurance maintains stability amidst pandemic: report

But ROE and ROA were lower in 2020 compared to 2019.

Singapore health ministry to consider fully portable Integrated Shield Plans

But doing so can result in higher premiums.

Pivoting to Digital: How the insurance sector is moving with tech

Making bolder moves on digital will be needed to attract a bigger part of the market.

Singapore life insurers post 29% jump in Q1 2021 weighted new premiums

Single-premium products grew 85% QoQ in weighted premiums.

Luxury import cars drive South Korean non-life premiums in 2020

Top general insurers had  $16.82b in premiums through credit cards in 2020.

Indian insurers at the cusp of transformation: retired IRDAI chairman

India's IT capabilities will accentuate the further growth of the sector.

Indian general insurers likely to hit $36.4b in 2025

The sector has a CAGR of 8.7% over FY2019-2024.

HSBC Life, dacadoo partner to promote better health amongst users

The insurer will integrate dacadoo into its health platforms.

Philippine insurers' 2020 net income slips 8.6% to $859m

Premium income only crept up 1.18% YoY.