Premium income growth takes a dive in China

It was slow-down time for
China’s insurance industry in the first half of 2011 with the life
sector producing a particularly dismal showing, reports the China
Insurance Regulatory Commission (CIRC).

Life insurance premium income
came in at CNY569.7bn ($88bn), down 4.8% from the CNY598.2bn
reported in the first half of 2010, while general insurance premium
income of CNY235.96bn was up 16.9%.

Across the life and general
insurance sectors total premium income in the first half of 2011 of
CNY805.66bn was recorded, up 13% compared with the first half of
2010 when a cracking growth rate of 33.4% was achieved.

The increase in the first
half of 2010 growth rate was produced by a 33.7% increase in life
premiums and a 33.5% increase in general insurance
premiums.

In a statement, CIRC chairman
Wu Dingfu warned of “great challenges” to the insurance market
caused by rising inflationary pressure and higher interest
rates.

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