Premium growth buoyed by upswing in economy

New investors are keen to benefit from the upswing in China’s fortunes

The news about the stronger-than-expected growth of the Chinese economy – GDP is up to 7.9% in the second quarter of 2009 and equity prices on the Shanghai stock market have risen by 75% since the beginning of the year – has benefited the insurance industry with premium income up 6.6% during the first half of 2009. At the end of the period, premiums stood at Yuan598bn (US$87.6bn) and exceeded the boom recorded during the first half of 2008.