Marktanalyse - Emerging Market and Investment Opportunities in the Chinese Motor Insurance Industry to 2016

Synopsis
The report provides top-level market analysis, information and insights into the Chinese motor insurance industry, including:
• Current, historic and forecast values for the Chinese motor insurance industry
• Comprehensive, country-specific analysis of the industry’s market attractiveness, covering key trends and drivers, plus benchmarking with other key markets
• Detailed analysis of the business and operations strategy used by various motor insurers in the market, including marketing strategy and social media strategy
• Detailed analysis of the challenges affecting the Chinese motor insurance industry
• Company profiles of the major insurers in the Chinese motor insurance market

Summary
China's insurance industry has evolved rapidly since 2005, nowhere more so than in the motor insurance category. Large profits and considerable growth have followed the introduction of compulsory motor third-party liability insurance (MTPL), and an exponential rise in new car sales. This favorable situation has attracted many domestic and international companies to enter the Chinese motor insurance market.

During 2011, the Chinese motor insurance industry represented 71.8% of the country's non-life insurance market. Market growth, coupled with the motor insurance category’s dominance of the non-life segment are attributable to the introduction of compulsory MTPL as of July 1, 2006, and the significant increase in car ownership that recently saw China overtake the US as the largest new vehicle market in the world. During the review period (2007—2011), rising levels of personal wealth led to an average annual increase of 25% in the number of privately owned vehicles and a situation whereby the Chinese motor insurance industry grew at a CAGR of 25.65% during the review period.

Scope
This report provides a comprehensive analysis of the motor insurance industry in China:
• It provides historical values for the Chinese motor insurance industry for the report’s 2007—2011 review period and forecast figures for the 2012—2016 forecast period
• It offers a detailed analysis of the key markets in the Chinese motor insurance industry, along with market forecasts until 2016
• It details the different macroeconomic factors affecting the motor insurance industry in China
• It covers an exhaustive summary on the key trends and drivers affecting the motor insurance industry
• It outlines the current regulatory framework in the industry
• It details the business and operations strategy used by various Chinese motor insurance companies
• It profiles the major insurers in the Chinese motor insurance industry

Reasons To Buy
• Make strategic business decisions using top-level historic and forecast market data related to the Chinese motor insurance industry and each market within it
• Understand the key market trends and growth opportunities within the Chinese motor insurance industry
• Assess the competitive dynamics in the Chinese motor insurance industry
• Gain insights into the business and operations strategies used by Chinese motor insurers
• Gain insights into key regulations governing the Chinese motor insurance industry

Key Highlights
• The growth of the Chinese motor insurance category is directly related to the growth of the economy and the automobile industry. Automobile sales (passenger cars, motor bikes and commercial vehicles) grew at a CAGR of 14.65% during 2008—2011.
• Motor insurance penetration, as defined by gross written premiums as a percentage of GDP, increased from 0.42% in 2007 to 0.72% in 2011, growing at a CAGR of 14.16% during the review period.
• In May, 2011, the China Insurance Regulatory Commission (CIRC) pledged to advance toward allowing foreign insurance companies to sell mandatory third-party liability (MTPL) motor insurance in the Chinese market.
• The internet is emerging as one of the most powerful and attractive promotional tools for insurance companies. Using social networking sites to interact with end consumers and increase brand awareness is becoming common practice.
• The Chinese motor insurance category remains highly consolidated with the top three companies accounting for more than 50% of the overall industry. Leading motor insurance companies include: PICC Property and Casualty Insurance Co., Ltd, Ping An Property & Casualty Insurance Company of China Ltd, and China Pacific Property Insurance Co., Ltd.
• Companies in the Chinese motor insurance category are finding it difficult to fulfill the new Solvency II requirements and both profitability and performance are suffering as a result.

Table of Contents

1 Executive Summary

2 China Motor Insurance Category Market Environment

2.1 Macroeconomic Fundamentals

2.1.1 China — GDP at constant prices

2.1.2 China — GDP by key segments

2.1.3 China — inflationary forecast

2.2 Business Confidence

2.3 Consumer Confidence

2.3.2 China — annual disposable income

2.3.3 China — unemployment rate

2.4 China Auto Industry Outlook

2.5 Market Share of Motor Insurance in Non-Life Insurance

3 Market Sizing and Future Growth Potential

3.1 China’s Place in the Motor Insurance Category of Emerging Economies

3.2 China Motor Insurance Category Market Size by Volume

3.3 Chinese Motor Insurance Category Market Size by Premium (in Value)

3.4 Chinese Motor Insurance Market Size by Sub-Category

3.4.1 Motor hull market size by volume

3.4.2 Motor hull market size by value

3.4.3 Motor third-party market size by volume

3.4.4 Motor third-party market size by value

4 Market Attractiveness and Challenges

4.1 Profitability Indicators

4.2 Trends and Drivers

4.3 Challenges

5 Market Entry Strategy and Competitive Landscape

5.1 Regulatory Framework

5.2 Entry Strategy

5.3 Competitive Landscape and Industry Structure

6 Business and Marketing Strategy

6.1 Marketing Strategy

6.1.1 Product strategy

6.1.2 Pricing strategy

6.1.3 Social media marketing

6.1.4 Virtual Marketing

6.2 Distribution Channels

6.2.1 Agency

6.2.2 Bancassurance

6.2.3 Internet

6.2.4 Call Centers

6.2.5 Others

7 Operations Strategy

7.1 Claim Management

7.2 IT system

8 Profile of Key Companies

8.1 PICC Property & Casualty Company Limited

8.1.1 PICC Property and Casualty Company Limited — company overview

8.1.2 PICC Property and Casualty Company Limited — business description

8.2 Ping An Property & Casualty Insurance Company of China, Limited

8.2.1 Ping An Property and Casualty Insurance Company of China, Limited — company overview

8.2.2 Ping An Property and Casualty Insurance Company of China, Limited — business description

8.3 China Pacific Insurance (group) Company Limited (CPIC)

8.3.1 China Pacific Insurance (group) Company Limited (CPIC) — company overview

8.3.2 China Pacific Insurance (group) Company Limited (CPIC) — business description

8.4 China Continent Property & Casualty Insurance Company Limited (CICC)

8.4.1 China Continent Property & Casualty Insurance Company Limited (CICC) — company profile

8.4.2 China Continent Property & Casualty Insurance Company Limited (CICC) — key facts

8.4.3 China Continent Property & Casualty Insurance Company Limited (CICC) — main products

8.4.4 China Continent Property & Casualty Insurance Company Limited (CICC) — key employees

8.5 Sunshine Property And Casualty Insurance Company Limited

8.5.1 Sunshine Property And Casualty Insurance Company Limited — company overview

8.5.2 Sunshine Property And Casualty Insurance Company Limited — key facts

8.5.3 Sunshine Property And Casualty Insurance Company Limited — main products

8.5.4 Sunshine Property And Casualty Insurance Company Limited — key employees

9 Appendix

9.1 About BRICdata

9.1.1 Areas of expertise

9.2 Methodology

9.3 Definitions

9.4 Disclaimer





List of Tables

Table 1: China — GDP at Constant Prices (US$ Billion), (Base Year 1999—2000), 2007—2016

Table 2: China — Annual Disposable Income (US$ Trillion), 2007—2016

Table 3: China — Insurance, Key Market Drivers — Automobile Sale, 2008—2015

Table 4: China Non-Life Insurance Market Size by Value (US$ Billion), 2007—2011

Table 5: China Non-Life Insurance Market Size by Value (US$ Billion), 2012—2016

Table 6: Chinese Motor Insurance Category — Market Size by Volume (in Millions), 2007—2011

Table 7: Chinese Motor Insurance Category — Market Size by Volume (in Millions), 2012—2016

Table 8: Chinese Motor Insurance Category — Market Size by Premium (US$ Billion), 2007—2011

Table 9: Chinese Motor Insurance Category — Market Size by Premium (US$ Billion), 2012—2016

Table 10: Chinese Motor Insurance Category — Motor Hull Market Size by Volume (In Million), 2007—2011

Table 11: Chinese Motor Insurance Category — Motor Hull Market Size by Volume (In Million), 2012—2016

Table 12: Chinese Motor Insurance Category — Motor Hull Market Size by Value (US$ Billion), 2007—2011

Table 13: Chinese Motor Insurance Category — Motor Hull Market Size by Value (US$ Billion), 2012—2016

Table 14: Chinese Motor Insurance Category — Motor Third-Party Market Size by Volume (In Million), 2007—

Table 15: Chinese Motor Insurance Category — Motor Third-Party Market Size by Volume (In Million), 2012—

Table 16: Chinese Motor Insurance Category — Motor Third-Party Market Size By Value (US$ Billion), 2007—

Table 17: Chinese Motor Insurance Category — Motor Third-Party Market Size By Value (US$ Billion), 2012—

Table 18: Chinese Motor Insurance Category — Key Performance Indicator (US$ Billion), 2007—2011

Table 19: Chinese Motor Insurance Category — Key Performance Indicator (US$ Billion), 2012—2016

Table 20: Chinese Motor Insurance Category — Top Companies (by Premium Income) 2011

Table 21: China Top Social Networking Cities

Table 22: China Continent Property & Casualty Insurance Company Limited (CICC) — Key Facts

Table 23: China Continent Property & Casualty Insurance Company Limited (CICC) — Main Services

Table 24: China Continent Property & Casualty Insurance Company Limited (CICC) — Key Employees

Table 25: Sunshine Property And Casualty Insurance Company Limited — Key Facts

Table 26: Sunshine Property And Casualty Insurance Company Limited — Main Services

Table 27: Sunshine Property And Casualty Insurance Company Limited — Key Employees

Table 28: Insurance Industry Definitions

Table 29: Exchange Rates (CNY—US$)





List of Figures

Figure 1: China — GDP at Constant Prices (US$ Billion), (Base Year 1999—2000), 2007—2016

Figure 2: China — GDP by Key Segments (%), 2007 vs. 2011

Figure 3: China — Inflation Rate (%), 2007—2016

Figure 4: China — Business Confidence Index 2008—2011

Figure 5: China — Consumer Confidence Index, 2008—2011

Figure 6: China — Annual Disposable Income (US$ Trillion), 2007—2016

Figure 7: China — Unemployment Rate, 2007—2016

Figure 8: Year-over-year Analysis of China’s Non-Life Insurance Market Size by Value (US$ Billions)

Figure 9: China’s Place in the Motor Insurance Category in the Context of other Emerging Economies

Figure 10: Chinese Motor Insurance Category — Market Size by Volume (in Millions), 2007—2011

Figure 11: Chinese Motor Insurance Category — Market Size by Volume (in Millions), 2012—2016

Figure 12: Chinese Motor Insurance Category — Market Size by Premium (US$ Billion), 2007—2011

Figure 13: Chinese Motor Insurance Category — Market Size by Premium (US$ Billion), 2012—2016

Figure 14: Chinese Motor Insurance Category — Motor Hull Market Size by Volume (In Million), 2007—2011

Figure 15: Chinese Motor Insurance Category — Motor Hull Market Size by Volume (In Million), 2012—2016

Figure 16: Chinese Motor Insurance Category — Motor Hull Market Size by Value (US$ Billion), 2007—2011

Figure 17: Chinese Motor Insurance Category — Motor Hull Market Size by Value (US$ Billion), 2012—2016

Figure 18: Chinese Motor Insurance Category — Motor Third-Party Market Size by Volume (In Million), 2007—

Figure 19: China Motor Insurance Category — Motor Third-Party Market Size by Volume (In Million), 2012—2016

Figure 20: Chinese Motor Insurance Category — Motor Third-Party Market Size By Value (US$ Billion), 2007

Figure 21: China Motor Insurance Category — Motor Third-Party Market Size by Value (US$ Billion), 2012—2016

Figure 22: Chinese Motor Insurance Category — Increasing Loss Ratio

Figure 23: Chinese Automobile Sales (Units in Million), 2008—2011

Figure 24: China Motor Insurance — Motor Insurance Density and Penetration (%), 2007—2016

Figure 25: Chinese Motor Insurance Category — Key Challenges

Figure 26: Chinese Motor Insurance — Number of Policies Offered

Figure 27: China Motor Insurance — Paid Claims (US$ Billions)

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