In a statement filed at the Hong Kong Stock Exchange, Ping An Insurance said, “Affected by the COVID-19 epidemic, Ping An experienced difficulties in offline business development and rising risks in retail consumer finance in 2020.”

Ping An Insurance’s total investment income from its life and health insurance businesses, which accounts for the bulk of its profits, increased by 4.5 percent to ¥182.5 billion, versus ¥175 billion a year ago.

According to Switzerland-based insurance company Swiss Re, China will drive the recovery of the global insurance market in the coming years. The insurer in its report said that premiums in China will grow at an estimated rate of 10 percent in non-life business and by 8.5 percent in the life business next year.

The report, titled ‘Rebuilding better: global economic and insurance market outlook 2021/22’, which was published last year, also points out that the global premium volume is set to decline by 1.4 percent this year due to the coronavirus pandemic. However, they are expected to grow by 3.4 percent in 2021 and by 3.3 percent in 2022.

A report published last year by UK-based data and analytics company GlobalData said that China’s general insurance industry is forecasted to grow at a rate of 3.8 percent in 2020 amid the coronavirus pandemic.

The post Ping An Insurance reports drop in profit for the first time since 2008 appeared first on International Finance.

The report, titled ‘Rebuilding better: global economic and insurance market outlook 2021/22’ also points out that the global premium volume is set to decline by 1.4 percent this year due to the coronavirus pandemic. However, they are expected to grow by 3.4 percent in 2021 and by 3.3 percent in 2022.”

Swiss Re expects China to be the world’s fastest-growing insurance market. This is mostly attributed to the growth of its health insurance business which received a boost this year as a result of the coronavirus pandemic.

Andreas Berger, chief executive at Swiss Re Corporate Solutions told the media, “Market conditions from both the demand and supply sides point to continued pricing strength. The low-interest rate environment and the ongoing social inflation in the US will be key drivers of market hardening.”

According to UK-based data and analytics company GlobalData’s report published in September, China’s general insurance industry is forecasted to grow at a rate of 3.8 percent in 2020.

The market recorded a growth rate of 5.7 percent in 2019. The report revealed that China’s general insurance industry is predicted to grow at CAGR rate of 5.2 percent during the period between 2019 and 2023. However, prior to the pandemic, the industry was expected to grow at a rate of 8.6 percent.

The post China to lead global insurance market: Swiss Re appeared first on International Finance.

The market recorded a growth rate of 5.7 percent in 2019.

The GlobalData report revealed that China’s general insurance industry is predicted to grow at a compound annual growth rate (CAGR) of 5.2 percent during 2019-2023. However, prior to the pandemic, the industry was expected to grow at a rate of 8.6 percent.

Sangharsan Biswas, Insurance Analyst at GlobalData, told the media, “Despite signs of recovery, the Chinese economy continues to grapple with sluggish business activity as new cases of infection are being reported. The recent floods will further dampen economic growth, resulting in lower premium growth for general insurers.

“The ongoing economic uncertainty compounded by the second wave of infections and worsening global trade scenario is expected to slow down growth in China’s general insurance industry. Despite push from regulators for a faster recovery, it is expected to be a protracted one.”

The report further revealed that the slowdown is mostly evident in the motor insurance segment followed by property insurance. Sales of new vehicles as well as new residential units in China declined due to the pandemic during the first half of the year.

It is reported that, China is also looking to restructure its medical insurance system. The restructuring is expected to impact nearly 300 million Chinese residents.

In August, China’s National Healthcare Security Administration, a sub-ministry-level government agency managing China’s public health insurance programmes, published a draft to reshuffle the urban employee basic medical insurance system.

The post China’s general insurance industry to grow by 3.8% in 2020 appeared first on International Finance.

Other investors such as IDG Capital and Wisdom Choice Global Fund also participated in the funding round for Waterdrop, which is known as Shuidihuzhu in China.

The funding round is reportedly the world’s largest financing round in the online insurtech industry in 2020 to date, Tech Asia reported.

Reportedly, Waterdrop will the funds to help the firm grow as well as incorporate partnerships with others in the healthcare ecosystem, from pharmaceutical companies and insurance businesses.

Peng Shen, founder and CEO of Waterdrop, in a statement, “We are excited about the huge growth potential that lies ahead of us. Our long-term goal is to become a leading online healthcare platform in China with an ecosystem that includes insurers, pharmaceutical companies, hospitals and drug stores, as well as nursing institutions and rehabilitation institutions. We are committed to not only helping users with financing issues but also providing them with integrated healthcare services along the way.”

The company has not revealed its valuation as of yet, however, according to media speculations, Waterdrop is valued at $2 billion.

Prior to this, Waterdrop raised around $252 million, including a $145 million Series C in June 2019.

In a report, Swiss Re said that insurance growth in China will be the strongest worldwide in 2020.

An analysis from a Swiss Re Institute report revealed that China’s insurance industry is performing robustly, with premium growth returning quickly to its pre-pandemic trend rate.

The post Chinese insurance company Waterdrop secures $230 mn funding appeared first on International Finance.

The China Banking and Insurance Regulatory Authority is playing an active role in further building the plan. In fact, the plan also seeks to increase the capital of small and medium insurers in China especially with the adverse effects of the Covid-19 pandemic.

It is reported that new rules and requirements will be finalised in the second half of 2020. “The move is aimed at giving the provincial insurance firms access to capital and an opportunity to leverage the best practices of a foreign insurance company,” a Beijing-based lawyer told the media.

According to the current regulations, foreign firms operating in China can own up to 15 percent stake in a local insurance company. With the introduction of new rules these firms will be allowed to have more than one business licence, media reports said.

Last December, it was reported that China would allow foreign insurers to own 100 percent stake in local life insurers from January 1, 2020. “The removal of the ownership limit will give foreign investors the chance to buy out their local shareholders, which will give the foreign companies greater or full flexibility in determining and implementing their strategies,” according to á Fitch Ratings’ report published last December. “This should reduce internal conflicts as well as the cost of internal communication.”

The post China seeks to increase ownership limit for foreign insurers appeared first on International Finance.