Regulatory body’s moves against risky business practices hit premium growth
The growth in premium income in the insurance sector slowed in the first half of the year as stricter regulations designed to curb risky business began to bite, the industry’s top regulator said on Thursday.
Insurance companies’ premium income rose 23 percent year-on-year to 2.3 trillion yuan ($340 billion) in the first half of the year, slower than the 37 percent increase during the same period of last year, data from the China Insurance Regulatory Commission showed.
Premium growth for the full year is projected to drop below 20 percent, amid stricter regulations to contain financial risks, an official at the watchdog said at a news conference in Beijing.
Total profits of insurance groups grew 10 percent yearon-year to 116.2 billion yuan in the first half of the year, according to the CIRC.
The regulator moved to curb aggressive investments and acquisitions by the country’s insurers and the sale of short-term high-yield investment products since last year.
The CIRC has ordered insurers to reduce the proportion of income from sales of