02-05-2019

The overall development of China's insurance industry has been in good shape since the beginning of this year. According to statistics from China Insurance Regulatory Commission, the original premium income of the insurance industry in Q1 increased by nearly 16% on a year-over-year basis and the total investment amount increased by nearly 44%. The liability side of the domestic insurance companies has improved significantly, and the asset side has also performed well, mainly benefiting from the good performance of the equity market and the return on long-term interest rates. On the basis of the implementation of 15 measures for the expansion of opening up to the outside world in April last year, the banking industry and insurance industry have also proposed 12 new measures to gradually expand the channels for foreign institutions to participate in China’s insurance market and therefore diversify China's insurance products. Based on the high penetration rate and promotion of local insurance companies, it is expected that in short- and medium-term, foreign institutions will not cause greater competitive pressure on local insurance companies. The improvement of the operation of the domestic insurance companies is highly likely to continue. The valuation of domestic insurance companies is still attractive, and the optimistic view of the insurance sector is maintained.

Reference:
China Insurance Regulatory Commission Website

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