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Surging bank insurance suffers slowing-growth undercurrents |
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Written by Administrator
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Friday, 07 July 2006 |
BEIJING, July 7 (InfoChina) – Though China’s banking insurance surged 85.59% year on year in the first five months of the year, the growth rate is 35.41% lower than the 121% in Jan-Feb, according to statistics released by China Insurance Regulatory Commission.
The shrinking bank insurance was caused by several factors. Besides seasonality reason and the siphoning effect of a recovering stock market, insurance companies’ initiative in changing the charging mode from single-time lump-sump payment to installment payment also causes the country’s bank insurance revenue to look smaller.
The country’s crackdown on commercial briberies in insurance industry also played a hand in curbing growth momentum of bank insurance, some experts say.
The largely expanded treasure bond issue and fund sales, which have relatively higher return rates than insurance products, since this April also decrease the number of insurance buyers.
Bank insurance raked in premiums totaling 26.2 billion yuan in the first two months of 2006, representing a year-on-year growth of 121%.
As said by industry insiders, bank insurance began to suffer slowing growth since April.
As a company with the country’s largest bank insurance revenue, the market share of China Life (NYSE: LFC, HK: 2628) in bank insurance fell to 19.28% in May and its average monthly premium income decreased from 231.0961 million yuan to 113.8766 million yuan. |
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