HONG KONG, Sept 18 (Bernama-BUSINESS WIRE) — AM Best has maintained its stable outlook on China’s non-life insurance segment, citing several factors that include a supportive regulatory environment, increased health insurance awareness and strong growth potential in the electric vehicle insurance market.
The Best’s Market Segment Report, “Market Segment Outlook: China Non-Life Insurance,” notes that the segment’s solvency ratios under China Risk-Oriented Solvency System (C-ROSS) stabilised in 2023 and through the first half of 2024, following a decline in 2022. Large Chinese insurers have been able to raise funds from the domestic debt capital market at favourable financing costs by issuing capital supplementary bonds in recent years. AM Best views this move as credit-positive and expects that as the capital market expands over time, investor confidence and risk appetite will grow.