The year 2011 is poised to be difficult for insurers

Out of the 101 Chinese insurance companies listed in the stock market, 55 have exhibited losses. Life insurers sustained the biggest deficit since out of the 49 companies operating on the market, 32 have reported losses amounting to 1.2 billion USD. The profits generated by the remaining 17 life companies totaled 582 million USD. In non-life business, 23 insurers out of 52 are in the red. Cumulated losses in non-life attained 322 million USD. These bad results are accounted for by the poor performance of investments, banks competition and regulatory constraints imposed on bancassurance.