Mainland insurers are expected to see double-digit growth in premiums next year on the back of a projected 8.8 per cent economic expansion, according to Swiss Reinsurance.
Life insurance premiums are likely to grow by 11 per cent year on year in real terms, after having contracted by an estimated 6 per cent this year as a result of tighter regulations on bancassurance, the reinsurer said in a report released yesterday.
It expects non-life insurance premiums to increase 12 per cent, moderating from this year's estimated 15 per cent growth as the economy slows down.
'China's insurance market will see sustained growth, continuing to take a lead among emerging markets,' said Xing Li, an economist at Swiss Re. 'Chinese policymakers have more leeway to leverage policies to counter economic slowdown, including the use of reserve requirement ratio.'
Joyce Huang, director of Fitch's Asia-Pacific insurance team, also expects premiums of life insurers to grow between 10 per cent and 15 per cent next year.
The ratings agency, however, says mainland life insurers' profitability and capitalisation will remain under pressure because of possible lacklustre investment performance amid a gloomy economic outlook.