Premium growth in 2011

The insurance written premiums have progressed by 10.4% in 2011 compared to 2010, reaching 227 billion USD. The increase in life insurance (+6.8%) was lower than that of non-life (+18.5%). Despite this growth, Chinese insurance is going through numerous difficulties that are likely to worsen during 2012. The lack of capitalization of the Chinese insurers and the volatility of the financial markets have, especially, strained the sector. The insurance commission is encouraging companies to increase their financial soundness by issuing subordinate, convertible or even hybrid capital. Tighter monitoring within companies and further control of the authorities are expected.