Outlook on China’s life market remains negative

June 28 2017 by InsuranceAsia News Staff

The profitability and capitalisation of Chinese life insurers are expected to weaken on the back of weaker macroeconomic and credit conditions, according to Moody’s Investors Service.

With this, the ratings agency said its outlook on China’s life insurance industry remains negative.

Qian Zhu, a senior credit officer at Moody’s, said life insurers in China continue to face multiple operating challenges, including moderating economic growth and rising regulatory pressures.

During the next 12-18 months, Moody’s said the overall creditworthiness of life insurance companies in the country will deteriorate.

In its report, the ratings agency said many insurers in the country lack the resources to move to a more sustainable model of long-term regular premium and protection products.

Since March 2016, Moody’s has maintained a negative outlook on the Chinese life market.

 

MORE FROM: China