In order to better understand the China insurance market, this report undertook a statistical and proprietary survey in a couple of cities in China. In our survey, we contacted a number of residents and conducted effective interviews with many respondents as well.
Key market drivers-- 49% of households are current policyholders; 17% intend to buy insurance and 34% rejected the notion of buying in the next year. Most consumers hold a positive attitude towards insurance and consider making provisions for illness, retirement and accidents the three most important functions of insurance. The company's credibility is the most important purchase consideration. Insurance company sales outlets and insurance agents are the most important purchase channels for those intending to buy insurance.
Investment implications--Companies with strong brand awareness and distribution networks offering the right risk products should do well. China Life could benefit from its strong brand awareness and become attractive in the long term at the right valuation. China Insurance Intl could benefit from Taiping Life's rapidly improving brand awareness and market share gains. PICC’s market position is weak.
|
