PwC: Foreign insurers frustrated in China

Foreign insurers operating in China continue to face significant barriers to market access, the Financial Times reported, citing a study by PricewaterhouseCoopers (PwC). While about 45 foreign insurers have set up operations in the mainland with Chinese partners, many are frustrated by restrictions governing joint venture structures, branch locations and product offerings. The foreign insurers interviewed by PwC project sales growth in life insurance of between 30% to 50% and a 20% to 40% rise in sales of property and casualty insurance. Most of the survey’s respondents estimated that foreign-backed ventures would hold a 10% share of the market by 2011, from around 6% now. Both foreign and domestic insurers expect to face tough competition from the mainland’s banks, which are rolling out bancassurance products.