NewswireToday - /newswire/ -
London, Greater London, United Kingdom, 2012/03/13 - The Chinese motor insurance industry account represented 71.8% of the country's non-life insurance market. The Chinese motor insurance industry grew at a CAGR of 25.65% during the review period (2007–2011) - BRICdata.com.
China's insurance Industry has evolved rapidly since 2005, and nowhere more so than in the motor insurance category. Large profits and considerable growth have followed the introduction of compulsory motor third-party liability insurance (MTPL), and an exponential rise in new car sales. This favorable situation has attracted many domestic and international companies to enter the Chinese motor insurance market.
During 2011, the Chinese motor insurance industry account represented 71.8% of the country's non-life insurance market. This growth, coupled with the motor insurance category’s dominance of the non-life segment are attributable to the introduction of compulsory MTPL as of July 1, 2006, and the significant increase in car ownership that recently led China to overtake the US as the largest new vehicle market in the world. During the review period (2007–2011), rising levels of personal wealth led to an average annual increase of 25% in the number of privately owned vehicles and a situation whereby the Chinese motor insurance industry grew at a CAGR of 25.65% during the review period.
Key highlights of this title
• The growth of the Chinese motor insurance category is directly related to the growth of the economy and the automobile industry. Automobile sales (passenger cars, motor bikes and commercial vehicles) grew at a CAGR of 14.65% during 2008–2011
• Motor insurance penetration, as defined by gross written premiums as a percentage of GDP, increased from 0.42% in 2007 to 0.72% in 2011, growing at a CAGR of 14.16% during the review period.
• In May, 2011, the China Insurance Regulatory Commission (CIRC) pledged to advance toward allowing foreign insurance companies to sell mandatory third-party liability (MTPL) motor insurance in the Chinese market.
• The internet is emerging as one of the most powerful and attractive promotional tool for insurance companies. Using social networking sites to interact with end consumers and increase brand awareness is becoming common practice.
• The Chinese motor insurance category remains highly consolidated with the top three companies accounting for more than 50% of the overall industry. Leading motor insurance companies include: PICC Property and Casualty Insurance Co., Ltd, Ping An Property & Casualty Insurance Company of China Ltd, and China Pacific Property Insurance Co., Ltd.
• Companies in the Chinese motor insurance category are finding it difficult to fulfill the new Solvency II requirements and both profitability and performance are suffering as a result.
This report provides a comprehensive analysis of the motor insurance industry in China:
• It provides historical values for Chinese motor insurance industry for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period
• It offers a detailed analysis of the key markets in the Chinese motor insurance industry, along with market forecasts until 2016
• It details the different macroeconomic factors affecting the motor insurance industry in China
• It covers an exhaustive summary on the key trends and drivers affecting the motor insurance industry
• It outlines current regulatory framework in the industry
• It details the business and operations strategy used by various Chinese motor insurance companies
• It profiles the major insurers in the Chinese motor insurance industry.
• Make strategic business decisions using top-level historic and forecast market data related to the Chinese motor insurance industry and each market within it
• Understand the key market trends and growth opportunities within the Chinese motor insurance industry
• Assess the competitive dynamics in the Chinese motor insurance industry
• Gain insights in to the business and operations strategies used by the Chinese motor insurers
• Gain insights into key regulations governing the Chinese motor insurance industry
Product code: IS0201MR
BRICdata (BRICdata.com) specializes in the provision of strategic intelligence on emerging markets that helps suppliers in developed markets identify, pursue and achieve growth opportunities.