Analysis of China's compulsory third-party liability insurance market in 2018

The China compulsory third-party liability (CTPL) insurance market has been under stress in past few years. The CTPL insurance industry recorded an underwriting loss of RMB2.2 billion in 2016, according to the latest available statistics available from the Chinese regulatory bodies in November 2017. The industry has continued to look for ways to mitigate the strain.

This report analyses the CTPL industry from the following perspectives. 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 the industry averages, we conducted an in-depth 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.