Regulatory changes regarding foreign investment are likely to benefit the position of China’s emerging life insurance industry, according to Standard Poor’s. With the recent news that Ping An Insurance, the country’s largest life insurer by gross premium, has obtained formal approval to invest $1.75 billion outside of the mainland, the rating’s agency stresses that the industry is expected to see benefits over the long term in terms of investment diversification and improved performance.
Although SP acknowledges that the regulatory move by China’s State Administration of Foreign Exchange come with potential risks, it believes that that the newly acquired ability to invest abroad will enable what could potentially become the world’s...
