China’s rapidly growing and maturing insurance industry has undergone massive change in structure and regulation in the past several years. This presents both opportunities for foreign insurers seeking growth, and challenges for companies to keep abreast of the pace of change, according to a new study by Conning Research & Consulting.
“China’s insurance industry has been growing at twice the pace of its overall economy,” said Jerry Theodorou, analyst at Conning Research & Consulting.
“Yet as the industry works to overcome the legacy of prior economic and regulatory constraints, the direction and scope of future development is still in flux. Our study of the current state of market indicates that much of China’s insurance industry promise hinges on the questions surrounding urbanization, consumerism, and the anticipated rise of a middle class in China.”
The Conning Research study, “China’s Maturing Insurance Industry: Rapid Growth in a Public-Private Partnership” provides an overview of China’s insurance market, and the challenges of regulation and maintaining orderly growth. Further, the study outlines the issues facing foreign companies as they enter or build their presence in this dynamic yet opaque market.
“More than half of China’s premiums are concentrated in the most affluent and most populous urban centers,” said Stephan Christiansen, director of research at Conning. “As we look to the future, growth opportunities will likely be more focused on second- and third-tier metropolitan areas, which are likely to grow more rapidly in the medium term. Along with this growth from urbanization, we may well see the surge in the middle class that has long been anticipated, but which has so far remained elusive. Foreign insurers see the opportunity represented by the rapid growth, but to succeed in the
Chinese insurance market, they need a clear understanding of the history, the regulatory issues, the market intricacies, and the patience to set and meet long term profit goals.”
“China’s Maturing Insurance Industry: Rapid Growth in a Public-Private Partnership” is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company’s web site at www.conningresearch.com.