So fierce is the competition, that insurers are losing staff to rivals and blowing much of their budgets on marketing gimmicks. Hence margins are narrowing. Nothing could be further from the truth, says Li. And growth is likely to be even faster in coming years as liberalization takes hold, new products are introduced and companies are given more leeway to expand their business. That's because valuations have outpaced fundamentals.
Life insurance is futures-oriented anyway.
He expects new liberalization to take at least two more years. Li notes that more than half the people who purchase shares in Cathay and Shinkong do so as hidden asset plays to take advantage of the companies' large holdings in real estate. Investors should buy Cathay Life as a liquidity play, he figures. Neither Tuan nor Li are very bullish on Shinkong or China Life. All money values in U.S. dollars except share prices, which are in Taiwan dollars.