Value and stable growth top Chinese insurers' agenda

Strong premium growth of the past is likely to ease this year as mainland insurers turn their focus from volume to value and pursue new strategies to boost long-term profitability.

When outlining this year's development strategy, Yang Mingsheng, the chairman of the mainland's largest insurer China Life Insurance, summed up the company's goal as "prioritising value, stabilising volume".

Ma Mingzhe, chairman of the No2 player, Ping An Insurance, was more elaborate when he said: "Technology can help integrate finance with people's daily life, and internet finance will strengthen sales channels."

The two were pointing to the new direction of the latest round of transformation of the insurance sector in terms of product mix and sales channels.

"The transformation is positive for Chinese life insurers amid competition from trust and wealth management products," said Sally Yim, senior credit officer at rating agency Moody's Investors Service.

"As insurers aim to boost sales of more profitable products, substantial growth in premium income will be unlikely, but the strategy switch will benefit long-term profitability."

Last year, China Life posted a 12.2 per cent gain in first-year regular premium with a payment period of 10 years or more and scaled back its less profitable single-premium business.