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Citi: Non-Auto Insurance Biz to Implement 'Expense Rationalization', Expected to Benefit PICC P&C/ PING AN
2025-10-13 14:55:11
China's National Financial Regulatory Administration (NFRA) recently issued a notice announcing that the "expense rationalization" will be extended to non-auto insurance businesses, effective November 1, 2025, Citi said in a research report.

This will guide insurance companies to focus more on profitability rather than scale development, and control commission rates to ensure sufficient premiums and reduce receivables. Therefore, the broker expected that this comprehensive regulation will increase the profit margin of non-auto insurance within the industry, paving the way for profit enhancement in FY2026.

The broker projected that PICC P&C (02328.HK) and PING AN (02318.HK) will benefit more, since they can leverage their advantages in pricing, claims management, and operational efficiency in a more moderate competitive market.
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