Insights

Analysis of China's Compulsory Third-Party Liability Insurance in 2017

The domestic Compulsory Third-Party Liability insurance industry suffered an underwriting loss of RMB 4.9 billion in 2015. How to improve business performance under current regulatory policy has become a hot topic amongst P&C insurers.

According to 2015 data released in November 2016 by the China Insurance Regulatory Commission (CIRC), by 31 December 2015 there were 60 companies engaged in CTPL business in China, 19 of which generated more than RMB 1 billion premium. In 2015, the CTPL industry suffered an underwriting loss of RMB 4.9 billion. With investment income of RMB 9.3 billion and profits totaling RMB 4.4 billion, total annual income barely made up the aggregate loss.

The latest edition of our research provides an analysis of the CTPL industry based on the 2015 data, focusing on the following aspects:

  • Geographical analysis: premium size, competition level and operating costs across provinces.
  • Growth and profitability analysis: premium growth rate, underwriting profit ratio, loss ratio, expense ratio, combined ratio, segment proportion, and segmental profits
  • Actuarial analysis: claim frequency and compensation, risk premium and premium per policy, and floating premium rate.

This report is available in simplified Chinese only.

(Simplified Chinese version only)
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