Many Chinese insurers lack the tools to accurately match premium growth with investments, a new industry survey from PwC claims.
Only 13% of respondents said they had developed tools that can properly match their assets and liabilities, or investments and premiums, at any given time, reported the South China Morning Post citing the PwC report.
Around 12% said they had set up the means, but are yet to use them in daily business operation, while another 47% said they haven’t developed any methods at all and admitted to having the necessary systems in place, between their investment and product departments.
Between March and May, the accounting firm polled 107 insurers on how they are coping with mainland China’s risk-oriented solvency supervision framework, that took effect last year.
Such risk-oriented solvency supervision systems should now be integral tools in business planning and operations, PwC said.
“Insurers have attached growing importance to investment risk and asset/liability management against the new regulatory environment,” PwC said. “Yet they are still falling short of establishing the management means, models, technologies and tolls needed to handle the issue.”
The PwC survey covered life insurers, property and casualty insurers, reinsurers, pension insurers and health insurers.