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Dec 2019

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China Re urges P&C insurers to strike balance between scale and profits

Source: Asia Insurance Review | Nov 2019

China Re P&C has stated that property and casualty insurers should not only adjust their business structure to avoid reliance on ‘one class of risk’ but they also need to find a balance between scale and profitability in an emerging market. 
 
In the first half of this year, over 60% of P&C insurers in China posted business growth, but only 30% of them raked in underwriting profit.
 
In addition, according to China Re P&C, risk changes in the property insurance market are mainly reflected in four areas:
First, the traditional non-auto insurance market has suffered heavy losses, affecting several classes of business.
 
Second, in credit risk business, defaults are increasing and the overall debt level keeps rising. There are more defaults involving P2P lending platforms, auto loans, corporate loans, and agriculture-related loans. 
 
Third, catastrophe risk continues to grow rapidly. For example, losses arise from natural disasters which are increasing in frequency.
 
Fourth, risks in emerging sectors have been gradually exposed. For example, huge claims are now more frequent in special industries, such as the energy and wind power sectors. A 
 
These news stories are taken from Asia Insurance Review’s unique eWeekly China newsletter. 
eWeekly China focuses on the world’s fourth largest insurance market – in English – providing the most up-to-date news to give readers insights and overviews of the Chinese market. 
Subscribe online at www.asiainsurancereview.com/eCIN-Subscription
 
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