S&P is maintaining its positive outlook on China's insurance market with stable outlooks elsewhere
Standard & Poor's has affirmed the stable outlook on most of the insurance markets in Asia-Pacific. They reflect strengthening balance sheets and strong growth prospects for most markets, which remain supportive of the industry's credit profile.
"This is despite challenges such as continued softening in the non-life industry, increasing competition in some markets, and regulatory constrain for some life markets' asset and liabilities management," said S&P credit analyst Connie Wong.
Standard & Poor's recently published insurance market overviews on Australia, China, Hong Kong, Korea, Malaysia, New Zealand, Philippines, Singapore, and Taiwan.
China's insurance market outlook remains positive, reflecting improving operational fundamental and its proactive regulatory development. The outlook on New Zealand's life insurance sector was revised to stable from negative through increased opportunities from a new government-sponsored voluntary superannuation regime "KiwiSaver" and greater government focus on financial literacy, disclosure, and regulation.
Although Asia-Pacific's insurance industry outlook is stable, the industry risks in the region vary from very high to low. This points to differences in consumer demands and complexity, degree of insurance penetration, levels of technical and management sophistication, and the influence of regulations.