In these next pages, you will read about current events in the life and development of major service providers in the Chinese insurance industry.

The first part of the report covers the industry size and value and the regulatory developments of the insurance industry. It also provides an overview of the life and non-life insurance segments as well as foreign insurance companies in China.

Part two of the report presents the trends and outlook of the industry which include the automobile insurance, bancassurance, aging population, life expectancy, trend of urbanization, disposable income, savings rate and the country’s diverse and sophisticated customer needs

Five construction companies are discussed in the third part of the report. SWOT analysis, operational highlights, latest financial results and quick facts of each leading company are also included in this section.

Key Points:

• China has further strengthened regulations and consumer protection by requiring insurers to keep the combined ratio of their new and independently developed products below 100%.

• China is stepping up in liberalizing the insurance industry by granting foreign insurers full access to China’s lucrative motor vehicle insurance market. The step is expected to intensify competition and to improve the level of service provided by local insurers.

• Banks have increasingly adopted the emerging bancassurance model, bank-owned insurance company. The common ownership allows both parties to leverage on synergies such as a more integrated work flow, wider business network and established expertise in insurance risk management.

• China’s growing proportion of aging population, rising life expectancy, increasing per capita disposable income in urban households and relatively high savings rate are expected to create and sustain a favorable operating environment for both the local and foreign insurers.