Industry Analysis Case Study

Life Insurance Industry in China

OR

Abstract:
China's life insurance market was at a fledgling stage and had a tremendous growth potential because of the huge population of 1.3 billion. In fact, with the setting up of the China Insurance Regulatory Commission (CIRC) in 1998, the industry witnessed a transition from a straggled state of affairs to a methodical one. Till 2001 the industry had resisted free foreign entry and thus had very minimal foreign participation. With China getting accession to the World Trade Organisation (WTO), experts envisaged a depletion in the market domination of the local players. Foreign majors had lined up for the market entry, hoping for a major chunk of the 'big cake'.

Pedagogical Objectives:

• To discuss the evolution of the Chinese life insurance industry, its present status and challenges ahead for both domestic and foreign insurers.

Keywords : Life insurance industry in China, Industry background, WTO (World Trade Organisation) accession, Entry of foreign insurers, Market growth, Economic growth and implications, Regulations, Government and Business Environment Case Study, Business Environment Case Study, China Insurance Regulatory Commission, Insurance depth, Insurance density, Market share of the industry