china auto insurance market Archives

Insurance news shows that China is a more challenging marketplace than anticipated

August 28, 2012August 27, 2012 Julie Campbell

The compulsory auto coverage has both advantages and drawbacks for insurers. The Chinese marketplace is a captive one, and though this would seem like it is positive insurance news, particularly for the insurers, themselves, it is coming with its struggles. Fitch Ratings has reported that this environment is leading to some surprising losses. Although the law in China requires all motorists to have a car policy, which should – in theory – dilute the risk that is associated with underwriting that coverage, the most recent insurance news numbers are showing…

China State Council may discuss allowing foreign auto insurance companies into the country

October 24, 2011October 23, 2011 Nordstrom

Since 2009, China has been able to boast a profit in its auto insurance sector, as it experienced a tightening on the regulation of price controls that turned it around after years of losses within the insurance industry as a whole, as 70 percent of its profits were from that sector. Now, China’s State Council is thinking about taking things a step further, with the consideration of a plan that would permit some foreign insurers to sell their own liability policies for the first time within the country, increasing the…