Market Trends of China Property & Casualty Insurance Industry
This section covers the major market trends shaping the China Property & Casualty Insurance Market according to our research experts:
Insights on Insurtech and Collaborative Measures taken in Chinese Insurance Industry
The uniqueness of China online insurance market is that the large players collaborate with tech giants or tech giants set up new online insurance business of their own unlike the major trends observe in other economies. . In China, small insurtech companies do not come up with completely different offerings to compete with traditional players, instead they offer services that improve the approachability of the traditional player offerings through their services (e.g., WeChat).
The penetration rates of online insurance are on an increasing trend with 5% of the premium revenue in 2018 sourced through digital avenues. In China, motor insurance written through digital means has been 10.34 billion yuan in 2016 and has been on an increasing trend over the past four years.
Collaboration between the tech giants and traditional insurance players lead to more customer reach and innovation in the coming years as they are supported by the deep pockets of large players from two different fields. Zhong An Online Property & Casualty Insurance Co. Ltd. is one such a collaboration that uses latest technologies like AI and blockchain technologies whose capabilities, reach and efficiency have been covered in detail in the report.
Insights on Regulatory Environment in the China Insurance Industry
China Insurance Regulatory Commission is the supervisory body for insurance market in China. The regulatory has issued new rules in May 2013, as per which insurance business is classified as basic and extended groups. A new domestic non-life insurer was allowed to begin with basic business only and have to abide by minimum capital requirements to increase their business offerings. Also they are allowed to apply for extended business once in every six months and only one at a time.
Coming to a foreign applicant applying for insurance license in the country, in addition to the above stipulations they are required to have more than 30 years of experience in insurance, have total assets of at least USD 5 billion and have a representative office in China for at least two years. There are many other regulations related to currency, investments, mergers & acquisitions, filing and approval authority related regulations which are covered in detail in the report.
