TechNavio recognizes the following companies as the key players in Reinsurance Market in China: Lloyd’s Reinsurance Company (China) Ltd., Münchener Rückversicherungs-Gesellschaft AG, and Swiss Reinsurance Company Ltd.
Commenting on the report, an analyst from TechNavio’s team said: “Natural catastrophe losses have increased in the past three decades, mainly due to rising economic values. Increasing urbanization in the coastal regions and the increasing frequency of natural calamities have played a significant role in uptake in the Reinsurance market. This has attracted the attention of the Chinese government to seek to build robust catastrophe insurance and promote the Reinsurance market in the country. The Chinese government outlined these goals in its 12th five year plans. There are also plans to build an insurance exchange in Shanghai, considering the increasing density of insurance and reinsurance players in the market. As a result, the density of insurance and reinsurance companies will increase, with the increasing demand for reinsurance. This will also reduce the burden of higher government debt per capita incurred in the event of natural calamities.”
According to the report, one of the major drivers in this market is the robust economic growth. China is one of the leading countries which have exhibited good economic growth, coupled with low inflation rates. As a measure to revive investments in the economy, the government is opening up fiscal and monetary policies. This step will encourage foreign insurance and reinsurance companies to collaborate with Chinese domestic companies and operate in the country. This makes it a potential segment for reinsurance.
Further, the report states that one of the main challenges in this market is the slower growth in premium income. Global interest rates are currently low, which has lowered investment yields. Consequently, insurance companies are left with adequate capital to fund their risk mitigation strategies, which reduces the demand for reinsurance.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors. For further information on this report, please visit https://www.technavio.com/report/reinsurance-market-in-china-2014-2018
TechNavio, the market research platform of Infiniti Research Ltd., publishes periodic market research reports on niche and emerging technologies. For more information on our market research, please visit https://www.technavio.com/it-hardware-software-services
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TechNavio Announces the Publication of its Research Report – Reinsurance Market in China 2014-2018
