Lloyd’s has released a research report on China’s rapidly developing insurance market, which it said “explores the key trends in the Chinese non-life insurance market and the opportunities they present for specialist players.”
The report concentrates on the following four “key findings:”
Risk awareness is a key challenge
The focus in the non-life market is changing from standard lines fighting new entrants for market share to developing new products and expanding size of the market. However, penetration and customer awareness are low.
Development of a strong broker market is vital
Broker market share has grown significantly to over 20 percent of the commercial insurance market, and the development of competitive local brokers (both commercial and captive), as well as the presence of the large global brokers, is a positive sign. There remains room for further growth, however.
Growth of domestic reinsurance capacity
Increasingly domestic insurers are relying on local reinsurance capacity, which is developing rapidly. In the future, it is likely that these brokers will place an increased share of reinsurance business within China or at least in the regional markets of Hong Kong and Singapore.
The market is in need of specialist expertise
Despite the rapidly growing expertise and capacity of local players, the Chinese non-life market is in need of further capacity and expertise in specialist areas.
The full report may be obtained on the Lloyd’s web site at: http://www.lloyds.com/Lloyds_Worldwide/WMID
Source: Lloyd’s
Topics Agencies Excess Surplus China Market Lloyd's
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