China's top 8 insurers embrace self-regulation in motor insurance shift: Nomura

The agreement aims to adhere strictly to regulatory requirements.

The top 8 property and casualty (P&C) insurers in China, holding an 88% market share for motor insurance premiums in 2022, have collectively endorsed self-regulation in response to recent notices from the National Administration of Financial Regulation (NAFR), according to a note by Nomura.

The agreement aims to adhere strictly to regulatory requirements, especially in expense control following pricing deregulation in June. 

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“Top players will benefit more from the recent tightening regulations. Self-regulation is not realistic; what really matters is regulatory actions. There are precedents of motor insurance self-regulation, including but not limited to those in 2008 and 2012, which came out, just like this time, in response to tightening of regulatory requirements on expense control as a result of a rising combined ratio.” the note said.