PICC Property & Casualty says auto insurance in China may boost profits

According to PICC Property & Casualty, the decision made by China to permit foreign insurance companies to sell mandatory auto insurance might help the local insurers to make base rate government changes for those policies. The board secretary in Beijing for this largest non-life insurance in the country, Zhang Xiaoli, said that the result of bringing in compulsory vehicle coverage with third-party liability will be “quite limited” for the countries based in the country. He explained that insurance companies from other countries probably won’t “launch any big offensive” because they…

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Current Chinese insurance and reinsurance marketplace influx

There have been many changes to the Chinese insurance marketplace over the last few months, with the introduction of foreign insurers as well as the recent increases in the premiums for property and casualty insurance. Aon Benfield has just announced that those premiums had risen to $6.5 billion in 2011, which was a 67 percent increase over those in 2005. Furthermore, it has been forecasted that this growth will continue to rise as the China Insurance Regulatory Commission places its focus on premium increases and policies that will form a…

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China insurance market growing too fast for domestic insurers to handle

China’s insurance market is experience major growing pains, according to a report from Standard & Poor’s, a credit rating agency based in the U.S. The Chinese market is, by all accounts, enormous and the potential for success in second to none. The full breadth of this potential success, however, is open only to Chinese insurers. Native insurers are now facing demand for coverage that they are having trouble meeting. Many companies, including New China Life, one of the largest life insurers in the country, are plagued with capital shortfalls due…

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China is likely to allow foreign companies into its mandatory auto insurance marketplace

The Insurance Association of China’s chairman has announced that the country will likely be opening its doors to the largest auto market in the world to make it possible for foreign companies to enter into the mandatory auto insurance marketplace in 2012. Currently, this auto insurance market of $31.5 billion is entirely led by insurance companies from China, for example, Ping An Insurance and PICC Property and Casualty Co., but regulators are working to bring in a greater amount of competition. Jin Jianqiang, in Taipei, explained that insurers from other…

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Vietnam opens its doors to foreign insurers

Vietnam is opening the doors to its insurance industry, inviting foreign insurers to set up shop and do business within the country. The move comes as government officials begin to make significant changes to the country’s regulatory framework. Vietnam is home to one of the most rapidly growing insurance markets in the world and the rate of growth has only increased in recent years. A.M. Best Company, a renowned rating agency for the world’s insurance industry, expects that the demand for insurance will soar as the nation continues to develop…

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