China Non-Life Insurance Market Dashboard 1H14

...Underwriting Margins Constrained by Motor Insurance Deficits Fitch Ratings expects motor underwriting losses will continue to constrain the operating profitability of most Chinese non-life insurers in 2014. Higher acquisition costs and a less favourable claim ratio exacerbated the underwriting margin of most motor insurers in 2013. Underwriting margins could be squeezed if the Chinese insurance regulator undertakes liberalisation of the flexibility of commercial motor pricing. The agency believes that underwriting losses from both mandatory and commercial motor insurance are likely to persist for small- and medium-sized insurers in 2014 despite some insurers' efforts to make a turnaround through tighter expense control and better claim management. Scale advantage will still enable major listed insurers to achieve a combined ratio below 100%. Natural Disasters Remain a Key Threat to Underwriting Stability Fitch believes losses associated with natural catastrophes will remain the key source...

Special Report