A Two-Track Insurance Sector

New regulatory scrutiny and rising interest rates have created widely divergent operating environments for China’s insurance companies. Larger and well established insurers are in a superior position to benefit from higher yields on fixed income investments while maintaining access to more stable customer bases. Smaller insurers have been reliant upon short-term “universal life insurance” products now banned by regulators, and may face liquidity pressures given weaker premium income and additional risk within portfolio investments.

Posted August 1, 2017
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