Foreign insurance companies in China remain optimistic about delivering continued revenue growth, according to PwC's latest industry survey. Low market penetration, strong upside for premiums to grow, and the relative strength of China's economy is driving their positive sentiment. Foreign life insurers in China expect to grow by up to 30% over the next three years. Similarly, foreign property and casualty (P&C) companies anticipate growth of 20% in 2012 through to 2015.
The 31 senior foreign insurance executives polled by the survey expect moderate gains to market share. Foreign life companies expect their share to increase from 4.3% to 5% by 2015. P&C companies predict they will maintain a 1% share in three years time. However, many believe deregulation of the mandatory third party liability (MTPL) sector will create additional sources of revenue.
Foreign insurers are undergoing a transformation of their distribution networks, as more focus on growing market share through the bancassurance channel. Many foreign insurers are looking to streamline their agent workforce as demands for better qualified employees grows.