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Not bed of roses for foreign insurers
By Maggie Zhang |
November 26, 2010, Friday
|
Print Edition
Print Edition
FOREIGN insurance companies do not expect to see their market share expand this year and are concerned about a lack of profitability, PricewaterhouseCoopers said in an industry survey yesterday.
The insurers that participated in the survey dramatically lowered their expectations of any increase in market share for 2010 and over the next three years, the PwC survey said.
"Foreign insurance companies operating in China have tried in vain to gain traction and increase their market share," said Tom Ling, a PwC partner in charge of insurance business. "Established domestic insurers and the aggressive geographic expansion of the smaller insurers are giving the foreign players a run for their money."
He added that because of the stiff competition ''some foreign partners are considering diluting their shareholdings and looking toward to localizing their operations."
Overseas life insurers expect their market share to continue to hover at the current level of 5 percent in 2013, while property and casualty insurers' slice of the pie is set to remain at around 1 percent in three years. However, overseas insurers still expect their client base to grow in the future as the "pie" is expanding.
"China may be a challenging market, but the overall sentiment of foreign insurers is one of cautious optimism," said the survey that covered 21 overseas life insurers in China, which accounted for 75 percent of the country's overseas life insurers, and 10 out of the 18 overseas property and casualty insurers.
The insurers that participated in the survey dramatically lowered their expectations of any increase in market share for 2010 and over the next three years, the PwC survey said.
"Foreign insurance companies operating in China have tried in vain to gain traction and increase their market share," said Tom Ling, a PwC partner in charge of insurance business. "Established domestic insurers and the aggressive geographic expansion of the smaller insurers are giving the foreign players a run for their money."
He added that because of the stiff competition ''some foreign partners are considering diluting their shareholdings and looking toward to localizing their operations."
Overseas life insurers expect their market share to continue to hover at the current level of 5 percent in 2013, while property and casualty insurers' slice of the pie is set to remain at around 1 percent in three years. However, overseas insurers still expect their client base to grow in the future as the "pie" is expanding.
"China may be a challenging market, but the overall sentiment of foreign insurers is one of cautious optimism," said the survey that covered 21 overseas life insurers in China, which accounted for 75 percent of the country's overseas life insurers, and 10 out of the 18 overseas property and casualty insurers.
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