The Future Looks Good for China-Listed Insurers, Nomura Says
Xu Wei
DATE:  Sep 07 2017
/ SOURCE:  Yicai
The Future Looks Good for China-Listed Insurers, Nomura Says The Future Looks Good for China-Listed Insurers, Nomura Says

(Yicai Global) Sept. 7 -- Chinese insurance businesses listed on either the A-Share or H-Share markets will enjoy great opportunities going forward if they went public over 12 months ago, Tang Shengbo, head of Chinese insurance and non-bank financial research at Nomura Securities Co., said while speaking at the China Investment Conference on Sept. 6.

Nomura Securities is a wholly owned subsidiary of Japanese financial company Nomura Holdings Inc. [NYSE:NMR].

Although several policies have seen recent regulatory adjustments, the Chinese insurance industry still retains a high growth rate in the long run and demand remains strong, he said.

Nomura predicts that the development of life insurance will maintain robust growth in the second half of 2017, while the outlook for property insurance has improved due to the expense ratio. The securities researcher has switched its view from discretion to optimism, Tang added.

Nomura expects the decrease in property insurance's expense ratio will be higher than the increase in its loss ratio after the second round of auto insurance reform is complete. This is due to the expense ratio of the whole industry being controlled in the wake of tightening regulation that has been implemented since July. The comprehensive expense ratio will increase in the second half of this year, he said.

Insurance technology is reshaping the traditional insurance industry in every aspect of the industry chain. Startups have found more opportunities in sales and insurance claims, but challenges have emerged in product design and risk-based pricing amid the current relatively rigorous regulation.

Follow Yicai Global on
Keywords:   Insurance,Nomura