China news - Life sector's margins improve despite slowing premium growth
Source: Asia Insurance Review | Jan 2019
Life insurers in China see premium growth moderating even as margins are improving, according to Moody’s Investors Service in its just-released report, Insurance – Asia-Pacific: 2019 Outlook.
Moody’s also says that the outlook for China’s life insurance market is stable over the next 12-18 months. The report cites several factors for this outlook. They include:
- The fast retreat of short-term savings products, especially universal life products, has lowered systemic liquidity risks;
- Transition towards long-term regular-premium and protection-type products supports the growth of value of new business. Recurring premiums and higher margin product mix will improve earnings quality and capital efficiency over time;
- The life sector in general enjoys a solid solvency position amid increasing capital requirements;
- Product margins are improving and asset-liability management enhanced. A
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