{"id":3051,"date":"2025-10-30T09:00:38","date_gmt":"2025-10-30T10:00:38","guid":{"rendered":"http:\/\/www.xinetica.com\/?p=3051"},"modified":"2025-10-30T14:28:20","modified_gmt":"2025-10-30T14:28:20","slug":"steady-premium-growth-keeps-chinas-non-life-outlook-stable-am-best","status":"publish","type":"post","link":"http:\/\/www.xinetica.com\/index.php\/2025\/10\/30\/steady-premium-growth-keeps-chinas-non-life-outlook-stable-am-best\/","title":{"rendered":"Steady premium growth keeps China\u2019s non-life outlook stable: AM Best"},"content":{"rendered":"

AM Best has maintained a stable outlook for China\u2019s non-life insurance sector, supported by steady premium growth driven by the expansion of new energy vehicles (NEVs), ongoing health reforms, emerging product innovations, and regulatory initiatives aimed at fostering market development.<\/p>\n

\"am-best-logo\"A new report from the rating agency notes that, despite concerns over China\u2019s economic momentum, the country\u2019s non-life insurance sector has shown \u201cresilience amid persistent uncertainty” amid a moderate slowdown in direct premiums written growth in recent years.<\/p>\n

“Although the growth in non-motor lines has outpaced the motor segment as insurers have actively diversified their portfolios, the gap is narrowing as rising NEV sales have benefitted the motor segment, while economically sensitive lines like commercial property, engineering, and liability reflect the broader slowdown,” AM Best added.<\/p>\n

Lucie Huang, senior financial analyst, AM Best, noted, \u201cThe surge in new energy vehicle sales has driven higher demand for NEV motor insurance. However, while premiums for NEVs have been rising, industry data shows higher loss frequency and severity as compared with internal combustion engine vehicles \u2014 the former linked to driver inexperience and the latter to higher repair and replacement costs \u2014 and this contributed to overall insurance losses in 2024.”<\/p>\n

The ratings agency also found that non-life insurers in the country have expanded coverage into emerging sectors such as green energy, the low-altitude economy, and high-tech manufacturing.<\/p>\n

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Meanwhile, China’s focus on sustainability is reportedly driving demand for liability products like safety production and environmental pollution insurance.<\/p>\n

AM Best continued, “In addition, the adoption of digitalisation, automation and Chinese-developed AI tools has accelerated, supporting functions from client servicing, underwriting and auto-quotations to claims handling, fraud detection, and back-office operations. These technologies have boosted operational efficiency, though they also introduce associated risks.”<\/p>\n

James Chan, director, analytics, AM Best, concluded, \u201cWith subdued economic growth and an increasingly competitive landscape, smaller insurers face challenges in maintaining profitability and market share.<\/p>\n

\u201cOver the long term, AM Best expects that non-life insurers with refined business-line management and a strong focus on efficiency are more likely to sustain their position in the market.\u201d<\/p>\n

The post Steady premium growth keeps China\u2019s non-life outlook stable: AM Best<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

AM Best has maintained a stable outlook for China\u2019s non-life insurance sector, supported by steady premium growth driven by the […]<\/p>\n","protected":false},"author":1,"featured_media":516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[14],"tags":[],"_links":{"self":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/3051"}],"collection":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/comments?post=3051"}],"version-history":[{"count":3,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/3051\/revisions"}],"predecessor-version":[{"id":3054,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/3051\/revisions\/3054"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/media\/516"}],"wp:attachment":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/media?parent=3051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/categories?post=3051"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/tags?post=3051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}