why-chinas-insurance-industry-is-suffering

Why China's insurance industry is suffering

Fierce competition, poor sales tactics and low returns are keeping profits in the industry back.
WhatÆs happening to the China insurance market Compared to the frenzy surrounding the restructuring and listing of ChinaÆs state banks, the lack of enthusiasm in the insurance sector is striking.

ôForeign companies came to China hoping for an explosion in insurance, since insurance is often linked with GDP growth. But they were often unprepared for the practical challenge,ö says one local manager at a joint venture.

The initial rush was not surprising given the hype surrounding the sector. In 2002, for example, a survey by the Boston Consulting Group announced that since 1996, premium income growth had averaged 40% per annum, and that it expected premiums to grow at a rate of between 15% and...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222