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.
“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.