The “2019 China Insurance Industry Intelligent Risk Control White Paper” a study published jointly by the Insurance Institute of China and FinTech “OneConnect” affirms that in China, nearly one-fifth of motor claims are fraudulent.
These frauds hindering the motor class of business which records the highest subscriptions’ rate (almost 50% of the total non-life premiums) is affecting the whole market.
In addition to fraud, the Chinese insurance faces other difficulties such as a high rate of employee turnover, a lack of communication with the insured along with combined ratios above 100%.
The entry of the insurtech into the market should help Chinese insurers, especially small and medium-sized companies which lack the financial resources to invest.
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