China’s insurance regulator issued a three-year action plan to promote high-quality development of the property insurance industry, the first such plan since the China Banking and Insurance Regulatory Commission was established in April 2018 by a merger of the banking and insurance regulators, reported Caixin.
The plan aims to encourage the property insurance industry to transform from focusing on auto policies to parallel development of auto and non-auto insurance. Auto insurance accounts for more than 60% of China’s property insurance. Though the proportion is declining, it’s still much higher than the 30% proportion in major developed counties.
The plan calls for a digital transformation by insurers, setting a goal of transferring 80% of major insurance business online by 2022.
The insurance industry will be directed to serve the implementation of major national strategies, such as improving the quality of the Belt and Road Initiative and the Greater Bay Area Initiative, the plan said, without providing details. Chinese property insurers are also encouraged to “go out” and explore overseas markets.