Technological innovation and e-commerce's rising popularity will reshape Chinese insurers' landscape and market structure, says Fitch Ratings.
China is able to safeguard the payment of pensions from the government-run basic pension scheme on time and in full despite reductions in social insurance premiums last year, the country's human resources minister said last week.
Beijing-headquartered China Post Life's net profit in 2020 fell by 26.13% to CNY1.247bn over 2019. This is China Post Life's first drop in net profit in at least five years, in spite of increasing premium income.
The CBIRC has released and implemented a new regulation covering responsibilities for safeguarding the reputational risk of insurance companies and banks.
Premium growth in China's P&C insurance sector is expected to be in the low teens over the next two years, forecasts S&P Global Ratings in its "APAC Insurance 2021: Managing Higher Volatility" report released this month.
Premium growth in the life insurance market is expected to rebound with increases of 10%-15% forecast for this year and the next, reflecting rising awareness of protection needs and retirement planning, says S&P Global Ratings.
Following up on moves that delegate the supervision of insurance companies to regional bureaux, the CBIRC has sharpened its supervision system by reorganising functions and duties of its departments at head office level.
The CBIRC yesterday issued its "Regulations on the Qualifications of Directors, Supervisors and Senior Managers of Insurance Companies (Draft for Comment)".
China has announced it will set up a unified national pension system before 2025 so that pension funds can flow from regions with younger working populations to rapidly graying areas.
The five major A-share listed insurance companies in China have posted a combined premium income of CNY581.5bn ($87bn) in January 2021, a year-on-year increase of 6.26%.