The Chinese life insurance is required to focus on quality

According to the agency Fitch, the Chinese life insurance ought to focus on quality rather than quantity. The new potential distribution channels, the increase of interest rates and the attention given by the supervisory authorities over the solvency margin will have a positive impact on this class of business. Fitch remains, nevertheless, cautious about non life insurance which is affected by fierce competition, leading to very competitive ratings. The American agency is expecting pressure on the profitability and capitalization of non life insurers in 2010.