Finaccord's report titled ‘Creditor Insurance in China’ offers uniquely detailed insights into the market for creditor insurance, sometimes also referred to as payment protection insurance or loan-related insurance, as acquired by individual borrowers in China. Drawing on the results of a survey of 108 lending institutions, the study analyses the distribution of creditor insurance by banks and other lending institutions, how provision rates vary for different lending products, operating models used for arranging creditor insurance, and distribution partnerships weighted by the size of distributors. The PartnerBASE™ dataset that accompanies the report details all creditor insurance distribution deals traced by Finaccord. In short, this study will provide you with the definitive guide to current and future opportunities in creditor insurance in China.
Key features of this study plus the PartnerBASE™ dataset and market data annexe that accompany it include:
- quantification of creditor insurance market size and growth with a timeline from 2010 to 2014 and onwards to 2018: how much is this market really worth in China and what is its future development potential?
- segmentation of this market both by underlying loan type (differentiating between mortgages, point-of-sale automotive finance, other consumer finance and credit card loans) and by type of cover (differentiating between cover for death / permanent disability and temporary incapacity / unemployment);
- consideration of operating models used for creditor insurance: how advanced is the use of captive and joint venture underwriters by lending institutions in China?
- calculation of weighted provider share of partnerships: Finaccord's unique quantitative analysis helps to identify which underwriters of creditor insurance hold the relationships that offer the most potential;
- investigation into alternative distribution channels for selling creditor insurance: a number of factors could increase the potential for entities other than the lending institutions themselves to sell creditor insurance in China.
Table of Contents
0.0 EXECUTIVE SUMMARY
- What is this report about?
- This report provides a comprehensive analysis of loan-related insurance policies in China
- The report tracks the provision of creditor insurance across 108 lending institutions
- Survey of banks and other lending institutions
- Market data
- Creditor insurance
- Mortgages, consumer finance and credit cards
- Weighted provider share of partnerships
- Operating models
- Abbreviations and exchange rates
- PartnerBASE and market data annexe
2.0 MARKET ANALYSIS
- Banks and other lending institutions covered
- Introduction to the banking sector
- By total number of retail customers, Postal Savings Bank of China is a market leader...
- ... followed by the big four state-owned commercial banks
- In terms of its total assets, ICBC was likely to be the largest bank in the world at the end of 2014
- Various other types of institution also compete in China's banking market...
- ... including banks that are owned in part by private investors...
- ... and more than 140 city commercial banks, some of which have already carried out IPOs
- The number of rural commercial banks has expanded rapidly in recent years...
- ... and they are particularly adept at reaching customers who have not previously banked
- In the context of the market as a whole, foreign banks in China occupy a rather marginal position
- Consumer lending market size and growth
- Mortgage lending
- Mortgage balances outstanding are on track to exceed USD 2 billion in 2015
- Non-mortgage lending
- Total non-mortgage consumer lending balances more than tripled in value between 2010 and 2014...
- Credit and other pay later cards
- ... and credit cards in circulation grew strongly in each year over the same period of time
- Creditor insurance provision rates, operating models and partnerships
- Creditor insurance linked to mortgages
- Bona fide creditor insurance is on offer from relatively few mortgage lenders in China
- By weighted share of partnerships, BOC Insurance and CCB Life are tied in second position
- Creditor insurance linked to consumer finance
- Policies linked to consumer finance have been introduced by several banks in recent years...
- ... with Ping An visible as the most prominent provider in this sphere
- Creditor insurance linked to credit cards
- Schemes for credit card payment protection insurance have yet to be developed
- Creditor insurance risk coverage
- Creditor insurance products in China are limited to cover for death and permanent disability
- Alternative distribution channels
- Creditor insurance market size, growth and forecast
- The creditor insurance market is likely to have expanded quite rapidly in recent years...
- ... and the outlook to 2017 is also positive
LIST OF GRAPHICS / TABLES
0.0 EXECUTIVE SUMMARY
- Banks and other lending institutions in China contacted by Finaccord, segmented by type
2.0 MARKET ANALYSIS
- Residential mortgage lending balances outstanding in China (absolute and per capita), 2010 to 2014
- Consumer non-mortgage lending balances outstanding in China (absolute and per capita), 2010 to 2014
- Credit and other pay later cards issued and per capita in China, 2010 to 2014
- Key data points for the consumer lending market in China, 2010 to 2014
- Provision of creditor insurance linked to mortgages in China, 2015: provision rate, operating models and weighted provider share of partnerships
- Provision of creditor insurance linked to consumer finance in China, 2015: provision rate, operating models and weighted provider share of partnerships
- Risk coverage of creditor insurance policies in China, segmented by type of underlying product, 2015
- Creditor insurance gross written premiums in China, segmented by policy type, 2010, 2014 and 2018
- Creditor insurance gross written premiums in China, segmented by cover type, 2010, 2014 and 2018
- Creditor insurance gross written premiums in China, segmented by policy and cover type, 2010, 2014 and 2018