Low interest rates could pressure Chinese life insurers
Monday, 12 12 2016, Category: Insurance and Reinsurance, Country: Asia
A low interest rate environment in China continues to place pressure on the profitability of the country’s life insurers, which rely on interest spreads for profits, according to a Fitch Ratings report.
The China Insurance Regulatory Commission (CIRC) fully removed of the 2.5 percent cap on guaranteed returns for policyholders in October 2015, which has contributed to Chinese life insurers pricing insurance policies more aggressively.
Source: Intelligent Insurer