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Fitch says China’s non-life insurance sector stays stable in H1 2026
Fitch estimates H1 2026 non-life premium growth at 2.1% year over year, while the sector’s C-ROSS solvency ratio stood at 243% at end-Q1 2026, above the 100% minimum.
Fitch Ratings said China’s non-life insurance sector was broadly stable in the first half of 2026, citing a robust solvency buffer, modest premium growth, and a steady underwriting margin, according to its China Non-Life Insurance Monitor: August 2026 report.
Fitch reported that the sector’s comprehensive solvency ratio under C-ROSS was 243% at the end of the first quarter of 2026, well above the 100% regulatory minimum. Premium growth in H1 2026 was modest at 2.1% year over year, with performance varying across product lines.
Fitch attributed underwriting profitability for major insurers to steadiness through Q1 2026 following the regulator’s “rate-policy alignment” initiative, which targets curbing aggressive pricing competition and managing commission and acquisition costs. It said motor insurance growth is likely to remain subdued as new vehicle sales slow, despite consumption support and government vehicle trade-in incentives.
Looking ahead, Fitch said the sector faces significant exposure to weather-related claims, particularly in the second half of 2026, even as catastrophe losses were mild in 2025. Fitch also pointed to soft reinsurance market conditions as an opportunity for insurers to bolster catastrophe coverage, noting that Aon data showed total economic losses of USD 21.5 billion from seasonal flooding in China in 2025.