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Insurers still to convince market

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SCMP Reporter

China's life insurance market still has a long way to go, with most Chinese still not convinced it is the place to invest their rapidly growing financial assets or build up a hedge for the future.

Thanks to sustained economic growth over the past decade, individual investors have about 2.71 trillion yuan (about HK$2.52 trillion) in financial assets.

Many insurers believe these assets could provide the impetus for China's insurance industry to take off.

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Three new national life insurance companies were launched last year and more agents have been employed.

Annual life insurance premium income is expected to soar to 144 billion yuan by 2000, from 20 billion yuan last year.

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But so far, one thing is missing: consumer knowledge and acceptance of life insurance.

According to a survey conducted by the AXA-National Mutual Group, less than 10 per cent of 2,523 respondents have life insurance for which they pay 300 yuan or more per year.

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