Life insurance market to reach $160b by 2012

China’s life insurance market could grow to US$160 billion by 2012 from less than US$100 billion last year due to a rising middle class and steady economic growth, Bloomberg reported, citing a study by McKinsey & Company. The study says China is on course to become the world’s fifth-largest life insurance market by 2015, up from seventh in 2007, with US$275 bilion in gross premiums. Annual growth is expected to average 16-19% for the next 10 years. Up to 70 million households will pass the US$10,000 annual income threshold between 2007 and 2012, creating 150 million new customers capable of affording life insurance. But McKinsey said that Chinese insurers need to focus more on the quality of premium growth and reduce their reliance on price cuts.