Reg­u­la­tory body’s moves against risky busi­ness prac­tices hit pre­mium growth

China Daily (Hong Kong) - - BUSINESS - By LI XIANG lix­i­ang@chi­nadaily.com.cn

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

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.