Friday, April 20, 2018

Chinese internet-only insurers still register losses

The profits of China’s four online-based insurers saw a rise in premium income, but still ended up registering a loss in the first three quarters of the year, according to data from the China Insurance Regulatory Commission (CIRC).

The four internet-only insurers logged a 134% jump in their premium income, year-on-year, to Rmb6.4 billion (US$965 million) during the same period.

Observers said the regulator’s crackdown on aggressive short-term products promoted by smaller companies, and a surge in expenses, are responsible for their losses.

In contrast, traditional insurers have seen their profits rise along with the increase in premiums, based on earnings and solvency reports issued by companies this month.

Hong Kong-listed ZhongAn Online Property & Casualty Insurance, the biggest of the four online insurers, finished with a loss of Rmb400 million in the third quarter amid an increase in marketing expenses and regulatory restrictions.


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