According to China Insurance Regulatory Commission, premium from motor insurance in China went up by 18.9 % year-on-year.
As per the recent figures released by China Insurance Regulatory Commission, premium from motor insurance in China went up by 18.9 %, as compared to same period in the past year, reaching 70.6 billion Yuan in first 8 months of 2006.
This significant growth in Motor insurance industry is due to two major factors - Substantial growth in China's automotive industry and Compulsory motor insurance for vehicle owners in China.
As per the official figures, premium from motor insurance accounts for 67.7% of overall non-life insurance sector in China with mandatory premium income accounting for 8.09% of the motor insurance sector.
China Insurance Regulator Commission made a fresh policy in 2006 that makes it mandatory for motor vehicle owners to get their vehicles insured.
"The total insurance market in China is expected to grow at a rate of more than 13% to exceed US$ 100 billion mark from the year 2006 onwards. Rapid growth in car sales is expected to propel growth in auto insurance, which accounts for more than 60% of China's non-life premium," as per the report "China Insurance Sector Analysis (2006)" published by RNCOS.
These findings suggest that motor insurance industry is likely to become a key player in the growth of China's non-life insurance sector in near future.
Related Market Research Reports:
Booming Insurance Market in India (2008-2011)
Russian Insurance Industry Forecast to 2010
South African Insurance Industry Forecast till 2012
