Angelo Unson of the Benefield industry analysis and research team said, “domestic players still dominate, but foreign capital and expertise is increasingly playing a supportive role with the removal of geographical and product restrictions.”
Some of the findings included:
- Despite the growth, the market remains immature due to state controls and affordability of insurance. However, social and economic conditions are fueling demand for savings and life type products along with property insurance.
- Despite a low penetration rate, the nation’s enormous population translates into tremendous growth potential. However, huge disparities between the wealth in major cities and poverty in rural areas remain a challenge.
In addition the report said, “Many Chinese still do not see insurance as a necessity and, of course, many cannot afford to buy it. Awareness of the concept of insurance remains low amongst much of the population, particularly in the rural areas; however, this is set to change in the years to come.”
Apparently there are also difficulties with hiring staff because of the high turnover rates, which I find odd. There is such emphasis put on school in China that I imagine mountains of recent graduates lining up for jobs with insurers, a typically well paying industry.
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