The outlook for China’s property and casualty (P&C) insurance industry is stable though significant risks remain, state media said, citing a report issued Wednesday by Moody’s. However the industry faces challenges from increasing price competition, decreasing capitalization, and catastrophes. The ratings agency remains skeptical that Chinese insurers will be able to raise premium rates significantly and is concerned about the capital adequacy of some P&C insurers. Moody’s anticipates continued industry growth due to the still-low market penetration rate, increasing domestic consumption, public sector investments and untapped agricultural insurance markets. "While growth in 2009 may be slower than 2008 as a result of a gloomy global and domestic macroeconomic outlook, the industry could see relatively good growth opportunities," Moody’s said.