Motor premiums are currently estimated at nearly 50 billion USD. The steady wage increase of the middle class and the cultural importance of the car in Chinese society appear to offer a paradise for insurers. However, the 21 foreign insurance companies underwriting non-life policies control only 1.1% of the motor market which accounts for three quarters of the non-life class of business. Foreign companies face many difficulties in expanding their presence in the country. The network expansion is subject to prior authorization by the authorities who take between 12 to 18 months to provide a reply to the demands. State-owned companies remain, therefore, favourite. Internet technology could be a solution for foreign insurers. The execrable conduct of motorists and the high number of road accidents however, stand as a major obstacle to the development of the motor portfolio.
