China Insurance Report

Providing expert analysis, independent forecasts and competitive intelligence on the insurance industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Insurance Risk Reward Index and Company Profiles.

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  • Get a full view of the competitive landscape to assess your market position
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China Insurance Report
Product Price
$1,295.00

BMI View: China's insurance market continues to present enormous growth potential. Although the volumes of premiums written in both the life and non-life sector are high, actual rates of penetration and density remain low and coverage is limited, particularly in rural areas of the country where access to formal financial services is in many cases still underdeveloped. Household income rates continue to rise and while economic growth has slowed, China's economy remains one of the fastest growing globally, supporting our forecasts for healthy growth in insurance premiums. Other positive structural trends, such as an expanding and ageing workforce and strong rate of urbanisation also underpin strong growth forecasts.

Headline Insurance Forecasts (China 2013-2020)
2013 2014 2015e 2016f 2017f 2018f 2019f 2020f
BMI/CIRC
Gross life premiums written, CNYbn 942.51 1,090.17 1,171.57 1,288.16 1,410.13 1,537.14 1,666.80 1,797.79
Gross life premiums written, CNY, % y-o-y 5.8 15.7 7.5 10.0 9.5 9.0 8.4 7.9
Gross life premiums written, USDbn 153.29 176.93 183.70 192.98 205.86 222.77 241.57 260.55
Gross life premiums written, USD, % y-o-y 8.6 15.4 3.8 5.1 6.7 8.2 8.4 7.9
Gross non-life premiums written, CNYbn 779.71 933.31 1,062.36 1,187.93 1,327.72 1,483.43 1,656.12 1,846.68
Gross non-life premiums written, CNY, % y-o-y 18.5 19.7 13.8 11.8 11.8 11.7 11.6 11.5
Gross non-life premiums written, USDbn 126.81 151.47 166.57 177.97 193.83 214.99 240.02 267.64
Gross non-life premiums written, USD, % y-o-y 21.6 19.4 10.0 6.8 8.9 10.9 11.6 11.5

Key Updates And Forecasts

  • The life insurance market in China is large, writing premiums of around USD193bn in 2016, growth of 5.1% compared to 2015. Recent volatility in the stock markets will likely dampen demand for investment linked products, however underlying trends, including a large and ageing population, mean that long-term demand will continue to rise.

  • Throughout the forecast period through to 2020, growth will be stronger in the non-life sector, where premiums are forecast to grow by around 11.7% annually between 2016 and 2020. Much of this growth will be driven by the large motor insurance sector, though health insurance is also a key growth area, along with personal accident insurance.

  • China continues to make changes to the regulatory environment in order to expand coverage and improve flexibility while at the same time extending supervision and consumer protection. In late 2015 the China Insurance Regulatory Commission (CIRC) published draft regulations which include a range of measures including the relaxation of investment restrictions and enhanced corporate governance requirements.

BMI Industry View
5
Table: Headline Insurance Forecasts (China 2013-2020)
5
SWOT
7
Insurance
7
Industry Forecast
9
Life Premiums Forecast
9
Table: Life Premiums (China 2013-2020)
12
Table: Life Insurance Claims (China 2008-2014)
12
Non-Life Premiums Forecast
13
Table: Non-Life Premiums (China 2013-2020)
16
Table: Non-Life Insurance Claims (China 2009-2014)
17
Non-Life Sub-Sector Forecast
18
Table: Non-Life Insurance Premiums by Product Line (China 2013-2020)
27
Insurance Risk/Reward Index
29
Asia Pacific Industry Risk/Reward Index
29
Table: Asia Pacific Insurance Risk/Reward Index Q216
30
Market Overview
31
Life Market Overview
31
The Product Offering
31
The Competitive Landscape
31
Table: Life Insurance Market (USDmn) 2007-2014
33
Non-Life Market Overview
36
The Product Offering
36
The Competitive Landscape
36
Table: Non-Life Insurance Market (USDmn) 2007-2014
37
Company Profile
39
China Life Insurance Co
39
China Pacific Insurance (Group) Co
42
PICC Property and Casualty Co
45
Ping An Insurance (Group) of China Limited
47
Methodology
50
Industry Forecast Methodology
50
Risk/Reward Index Methodology
53
Table: Indicators
55
Table: Weighting of Indicators
56

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.