J.P. Morgan Sees Growing Divide in China’s Insurance Market
J.P.
J.P. Morgan said China’s insurance market is splitting further between stronger large insurers and weaker smaller firms, based on an analysis of 163 insurers.
In the note, the bank said smaller insurers have lower core solvency ratios and weaker SARMRA and IRR ratings, and that they are likely to keep losing market share. It said larger insurers are benefiting from stronger capital positions and risk controls.
The note also said the market may not be fully pricing in this structural shift. It cited tighter solvency regulation and industry consolidation as potential catalysts.
In the note, the bank said smaller insurers have lower core solvency ratios and weaker SARMRA and IRR ratings, and that they are likely to keep losing market share. It said larger insurers are benefiting from stronger capital positions and risk controls.
The note also said the market may not be fully pricing in this structural shift. It cited tighter solvency regulation and industry consolidation as potential catalysts.