The motor insurance industry in China is anticipated to see a significant growth over the next four years, according to a new report from the UK based research firm BRICdata.
China’s motor insurance industry increased at a CAGR of 25.65% during the review period (2007-2011) and represented 71.8% of the country’s non-life insurance market in 2011.
The growth of the Chinese motor insurance category is directly related to the growth of the economy and the automobile industry.
Between 2008-11, automobile sales (passenger cars, motor bikes and commercial vehicles) rose at a CAGR of 14.65%.
During the review period, motor insurance penetration, defined by gross written premiums as a percentage of GDP, grew at a CAGR of 14.16%
In May 2011, the China Insurance Regulatory Commission (CIRC) pledged to advance toward allowing foreign insurance companies to sell mandatory third-party liability motor insurance in the Chinese market.
The full report ‘Emerging Market and Investment Opportunities in the Chinese Motor Insurance Industry to 2016’ is available from BRICdata. Click here for more details.