September 09, 2024 (MLN): Chinese insurers are addressing current challenges by optimizing product mixes, enhancing efficiency, and improving risk management and distribution. Recent regulatory measures also aim to stabilize insurers' financial profiles, according to Fitch Ratings.
While the Chinese insurance industry faces significant challenges, Fitch believes efforts from regulators and insurers will make the industry more resilient over the longer term.
Regulators are working to reduce the pricing rates for insurance products, to control liability costs, and to mandate comprehensive control over commission payments.
In Fitch’s view, the regulations will relieve insurers’ burden from a decline in investment yield.
Life insurers are enhancing the professional skills of their agents and trying to leverage the bancassurance channel effectively. Small and medium-sized insurers are focusing on niche markets and offering tailored products.
The entity believes insurers are taking these steps to find their market positioning and adapt to the evolving economic environment.
