China Insurance Report

Published 03 March 2015

  • 70 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
China Insurance Report

BMI View : China's insurance sector is, in terms of many metrics, one of the world's largest and fastest growing . One major driver of the expansion of both segments over the coming years is the ongoing growth of the economy, notwithstanding that the pace of expansion has moderated. Another is the liberalisation of the segment. Changes announced by the regulator - the CIRC - are strengthening the insurers and giving them greater scope to innovate. Demographic changes will boost the demand for annuities (and other offerings) from the life insurers. Although competitive pressures will limit the growth in motor vehicle insurance, other lines will develop quite quickly.

In the short term, the development of premiums in USD terms will be held back by the anticipated softness of the CNY. For some players in China's motor vehicle sub-sector, price competition will remain a challenge. However, most trends are very positive.

The regulator is making a number of changes. One is to introduce China's own version of Solvency II, which will strengthen the insurers over the long term. Another is to liberalise the insurance market. This means that it will be easier for the insurers to develop and distribute innovative products, to lay off risks through reinsurance and/or to expand overseas. This is happening in the context of rising spending on private healthcare - which should provide opportunities for both non-life and life companies, steady growth in the economy and an increase in the number of older people (with consequent rise in demand for annuities and other retirement income solutions). As a result, both the life and the non-life segments should be able to achieve mid-to-high single digit annual growth in premiums over the forecast period.

Mainly because of the slow growth in motor vehicle insurance, non-life penetration is unlikely to increase over the forecast period. Density, however, will rise in both major segments. By 2020, penetration and density will remain at...

Table of Contents

BMI Industry View
7
SWOT
9
Insurance
9
Political
11
Economic
12
Business Environment
13
Industry Forecast
14
Total Premiums Forecast
14
Total Gross Premiums
14
Table: Total Gross Premiums Written (China 2011-2018)
15
Total Claims
15
Table: Total Insurance Claims (China 2006-2013)
16
Total Assets
16
Table: Total Insurance Assets (China 2006-2013)
17
Life Premiums Forecast
18
Life Premiums
18
Table: Gross Life Premiums Written (China 2011-2018)
19
Life Claims
20
Table: Life Insurance Claims (China 2006-2013)
20
Life Market Drivers
21
Table: Insurance Key Drivers, Disease Adjusted Life Years (China 2011-2018)
21
Table: Insurance Key Drivers, Private Health Expenditure (China 2011-2018)
23
Non-Life Premiums Forecast
24
Non-Life Premiums
26
Table: Gross Non-Life Premiums Written (China 2011-2018)
26
Non-Life Claims
26
Table: Non-Life Insurance Claims (China 2006-2013)
27
Non-Life Sub-Sector Forecast
28
Motor Vehicle And Transport Insurance
28
Table: Insurance Key Drivers, Autos (China 2011-2018)
28
Table: Insurance Key Drivers, Freight Tonnage (China 2011-2018)
30
Health Insurance
30
Table: Health Insurance (China 2011-2018)
31
Personal Accident Insurance
31
Table: Personal Accident Insurance (China 2011-2018)
32
Industry Risk Reward Ratings
33
Asia Pacific Industry Risk/Reward Ratings
33
Table: Asia Pacific Insurance Risk/Reward Ratings
33
Market Overview
35
Life Market Overview
35
Non-Life Market Overview
40
Table: Non-Life Insurance Market (US$mn) 2006-2013
42
Table: Non-Life Insurance Market (%) 2006-2013
43
Company Profile
45
Ageas
45
AIA Group
49
American International Group (AIG)
54
AXA
57
China Life Insurance Co
61
China Pacific Insurance (Group) Co
64
Manulife Financial
67
PICC Property and Casualty Co
70
Ping An Insurance (Group) of China Limited
73
Prudential plc
76
Demographic Forecast
80
Table: China's Population By Age Group, 1990-2020 ('000)
81
Table: China's Population By Age Group, 1990-2020 (% of total)
82
Table: China's Key Population Ratios, 1990-2020
83
Table: China's Rural And Urban Population, 1990-2020
83
Methodology
84
Industry Forecast Methodology
84
Risk/Reward Rating Methodology
87
Table: Indicators
89
Table: Weighting of Indicators
90

The China Insurance Report has been researched at source and features BMI Research'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.

Key Benefits

  • Benchmark BMI's independent insurance industry forecasts for China to test other views - a key input for successful budgeting and strategic business planning in China's insurance market.
  • Target business opportunities and risks in China through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

  • Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
  • Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).

BMI’s Insurance Risk Reward Index

BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Growth Drivers & Risk Management Projections

Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:

  • Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
  • Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
  • Motor: Fleet size by type of vehicle % change y-o-y.
  • Epidemiology: Disease Adjusted Life Years and private health expenditure.

Market Overview & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.

Sources

The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc