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AM BestTV: Coronavirus Affecting China Economy, Earnings, Say AM Best Analysts

February 12, 2020 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Feb 12, 2020--

In this episode of AM BestTV, AM Best Asia-Pacific analysts Christie Lee, senior director, analytics, and James Chan, senior financial analyst, said the coronavirus outbreak is slowing China’s economy, reducing insurance sales and impacting investment income. Click on http://www.ambest.com/v.asp?v=chinacoronavirus220 to view the entire program.

Lee addressed the potential impact of the virus on China’s insurance industry.

“Overall, the earnings for the life and non-life insurance markets are expected to have profit weakening in 2020, especially in the first half due to low economic consumptions, slower new business growth and lower investment returns,” said Lee. “However, the virus experience is likely going to improve the general public health risk awareness. In turn, this will benefit health insurance product sales in the long term. China is the second largest insurance market where the health insurance penetration rate is still very low. This means there is still a lot of potential in this market.”

Chan discussed the direct effect of the outbreak on health insurers, in light of the central government of China announcing that they would help to shoulder the treatment costs for infected patients.

“AM Best’s viewpoint is that the claims arising from the virus outbreak will have a relatively limited impact on Chinese insurers’ underwriting profitability,” said Chan. “Individual policyholders are unlikely to incur a significant amount of out-of-pocket expenses by themselves or would require claims on their private health covers.”

To access a copy of this commentary, titled, “Wuhan Coronavirus Epidemic Impact on China Non-Life Insurance Market Likely to be Limited,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=294121

Recent episodes of AM BestTV include:

AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at www.ambest.com/multimedia/ambtvsignup.html. View AM BestTV episodes at www.ambest.tv.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Company, Inc.and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20200212005800/en/

CONTACT: Lee McDonald

Group Vice President, Publication and News Services

+1 908 439 2200, ext. 5561

lee.mcdonald@ambest.com

KEYWORD: NORTH AMERICA UNITED STATES ASIA PACIFIC EUROPE CHINA NEW JERSEY

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES INSURANCE FINANCE

SOURCE: AM Best

Copyright Business Wire 2020.

PUB: 02/12/2020 02:54 PM/DISC: 02/12/2020 02:54 PM

http://www.businesswire.com/news/home/20200212005800/en