Market Analysis of China Compulsory Third-Party Liability Insurance in 2014
Deloitte's Actuarial and Insurance Services team has analyzed the latest market data and actuarial reports published by the China Insurance Regulatory Commission to identify current trends in domestic Compulsory Third-Party Liability insurance with an aim to help the industry optimize its operations to reverse long-term loss history.
In 2014, the Compulsory Third-Party Liability insurance (CTPL) industry suffered an underwriting loss of 4.7 billion RMB. With investment income of 6.3 billion RMB and profits totaling 1.6 billion RMB, total annual income barely made up the aggregate loss.
Using the latest industry operating data and actuarial reports publicized by the China Insurance Regulatory Commission (CIRC) in November 2015, this report analyzes the CTPL industry from three perspectives: geographical, growth and profitability and actuarial. It also identifies underlying patterns and disparities between companies' performance.
- Geographical analysis: Provinces vary in terms of earned premium, number of P&C insurers, premium concentration rate, loss ratio and combined ratio.
- Growth and profitability analysis: Different operational costs, assorted sales strategies and various products among companies have led to diverse performances on premium growth rate, underwriting profit ratio, loss ratio, expense ratio, combined ratio, segment proportion, and segmental profits.
- Actuarial analysis: Referring to industry average, we provide in-depth actuarial analysis on claim settlement and products management of CTPL in the three biggest P&C insurers from various scopes, including claim frequency, payment per claim, risk premium, premium per policy and floating premium rate.
This report is available in simplified Chinese only.