As of mid-2017, China's insurance sector remains one of the few globally that combines (massive) economies of scale with the clear potential for strong growth. In both of the major segments, growth is being boosted by innovation by enormous organisations that have access to the capital that they need, as well as control over multiple distribution channels. In the life segment, growth is underpinned by the demographics of China (with increasing numbers of people needing retirement income solutions) as well as by the high savings rate. In the non-life segment, premiums are rising from a low base in an economy that is still expanding quite rapidly by most standards.
Key Updates And Forecasts
Virtually all lines within the non-life segment are likely to benefit from volume growth throughout the forecast period. Price competition may constrain the development of premiums in the property, transport and personal accident sub-sectors of the non-life segment, but should not prove an insurmountable problem for the insurers.