The insurance market has made progress from a monopoly to oligopoly in the last decade and competition is being introduced gradually through government licensing of companies. Life insurance, in particular, is booming in China as state-owned enterprises cut back on coverage for state employees and lay off workers as part of the ongoing reform process. Chinese citizens, are starting taken it upon themselves to purchase private insurance whether property, life, vehicle, health or pensions. As foreign companies are allowed into the market and the market extends out from the major urban areas throughout the country, China's insurance industry is becoming a major focus of international activity for the world's largest insurers. The Chinese market is vast and, relative to other developed markets, is still experiencing rapid expansion.
Chinese consumers are very sophisticated, and highly brand conscious.
The degree of sophistication is ever increasing as more brands and products are introduced into the market place. The Chinese consumer economy has remained buoyant, and spending continues to grow. Similarly, local insurers are attempting to modernise and extend their operations in order to better compete in the new regulatory climate. The report covers the major areas of consumer and general insurance and the foreign and domestic insurers currently active in the market. There are now over twenty different types of insurance available in the Chinese market with 13 domestic insurance companies and an estimated 15,000 agents selling life insurance alongside 15 foreign entrants that have so far been granted licenses.