Chinese insurance industry premium scaled up during the first 10 months of 2008 due to booming economy, rise in the number of cars and increasing consumer confidence.
According to the China Insurance Regulatory Commission (CIRC), Chinese insurance companies recorded a rise in their premium during Jan-Oct 2008 over Jan-Sep 2008, as per the news published by forbes.
The industry regulator revealed that during Jan-Oct 2008, Chinese insurance firms generated premium revenue of 855.45 Billion Yuan ($125.27 Billion), up from 793.96 Billion Yuan ($116.22 Billion) recorded during Jan-Sep 2008. Also, premium income from the property insurance during the same period amounted to 200.12 Billion Yuan ($29.29 Billion), while life insurance premium income was registered at 585.88 Billion Yuan ($85.79 Billion). In this ten-month span, payments of the insurance claims reached 243.82 Billion Yuan ($35.71 Billion).
Insurance sector is a strong and rapidly growing sector in China. The country’s total population currently stands at over 1.3 Billion; thus, like other countries, life insurance remains the biggest segment of the insurance sector.
Moreover, as the number of cars in China is increasing at a fast pace, there will be an obvious rise in the need for car insurance. Consequently, opportunities in car insurance are growing immensely. Also, the automobile insurance is one of the largest growth areas in the insurance sector.
In broader prospects, the rising awareness among the people about the benefits of tailored insurance schemes and their capability to differentiate between health insurance schemes and healthcare services are also boosting the premium income of insurance sector.
Furthermore, the booming economy of China is positively impacting its insurance industry. There are a large number of key players in the sector, including some big players.According to a Research Analyst at RNCOS, “Chinese insurance sector is writing huge premium with rising consumer awareness and prosperity. To make sure that the sector records a steady growth in future, attempts should be made to tackle the challenges posed by fluctuating capital market. Also, steps should be taken to consolidate the confidence of investors on insurers and ultimately the insurance sector.”
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