China's property and life insurance companies will see a credit downgrade in the next two years if they continue to rely on car insurance and savings products for their income, according to Moody's Investors Service yesterday.
The narrow margin of car insurance and savings products, which now make up the majority of the insurers' income, will be insufficient to cover rising business cost and uncertain investment returns, Sally Yim, vice president of Moody's told Shanghai Daily yesterday.
She pointed out insurance companies may face stiffer competition that will hurt their profitability.
"Insurers will need to enhance their products and distribution channels to grow premiums," Yim said.
A growing thirst for water safety
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