First Read: China Insurance and Brokerage Sectors "Key takeaways from Lu..."

研报英文原文证据摘录

First Read: China Insurance and Brokerage Sectors "Key takeaways from Lu..."

Global Research

17 June 2026ab

First Read

EquitiesChina Insurance and Brokerage Sectors

Key takeaways from Lujiazui Forum China

Insurance

Charles Zhou

Lujiazui Forum commenced on 17-Jun. To insurance, the overarching message is Analyst

‘discipline before flexibility, and quality before scale’. To brokerage, we highlight market charles.zhou@ubs.com

stability, support to Tech (e.g. AI) and further opening-up. +852-3712 3887

Jessica Chan

Commission control policy intact; quality over scale Analyst

Following NFRA’s recent leadership transition, investors have questioned the jessica.chan@ubs.com

sustainability of commission control policy - the alignment of actual expense ratios with +852-3712 2507

regulatory filings. We see the policy as critical for the insurance sector, curbing negative Dennis Bai

expense margins and irrational competition, and structurally lifting profitability (e.g. Analyst

VNB margins in life; CoR in P&C). At the Forum, NFRA reiterated firm commitment to dennis.bai@ubs.com

above policy and a pivot from “scale and speed” to “quality and efficiency.” Amid above +852-3712 2473

factors and high base, we expect new sales momentum at major domestic listed insurers Wen Chen, CPA

to moderate in coming quarters—particularly in bancassurance, after strong 1Q26 Associate

growth, while margins should improve as focus shifts to higher-quality business (e.g. S1460524120002

longer duration). wen.chen@ubs.com

+86-21-3866 8259

Further foster 'patient capital' and encourage equity investments by insurers

Supportive policies to capital market delivered tangible outcomes. Since the launch of

the “National Nine Guidelines” in Apr-2024, A-share free-float holdings by medium- to