...Alternative Channels Spur Growth: Fitch Ratings believes ongoing premium expansion and insurers' flexibility in raising new capital to withstand underwriting volatility will underpin the credit profile of China's non-life insurance sector. The sector may report slower business growth in 2016 if motor-vehicle sales stay stagnant. Business growth from alternative channels, however, could accelerate as insurers market more policies online or through telemarketing. Margins Constrained by Deregulation: Underwriting deficits would persist for motor insurers with limited scale and less pricing sophistication. Fitch does not expect the trial deregulation of commercial-motor insurance pricing to lead to irrational price cuts in the near term. Intensifying market rivalry, however, could weaken motor insurers' underwriting margins if the China Insurance Regulatory Commission (CIRC) speeds up pricing liberalisation. Increase in Capital Buffer: The agency expects the net premiums retained by insurers...
