OREANDA-NEWS. Fitch Ratings says in a new report a trial deregulation of commercial motor insurance pricing in China is unlikely to lead to irrational price cuts in the near term. Chinese motor insurers' underwriting margins could be squeezed by more intense competition, though, if the China Insurance Regulatory Commission (CIRC) speeds up the liberalisation of motor insurance pricing.

Fitch expects China's non-life insurance market to continue expanding in the near term despite slower economic growth. Alternative distribution channels will be a key source of premium growth, as large or start-up insurers become more active in disseminating their insurance policies, such as motor insurance, through telemarketing and internet platforms.

With the introduction of a new risk-based capital regime, Fitch expects non-life insurers to become more cautious in managing their equity allocation, even though the regulatory limit on investment in a single blue-chip stock has been raised to 10% of insurers' total assets from 5%.

The "China Non-Life Insurance Market Dashboard 1H15" is available at www.fitchratings.com.