Morgan Stanley has released a research report stating that recent exchanges with insurance companies and frontline sales channels in Hong Kong and mainland China indicate that regulatory pressure on bancassurance may only be a short-term phenomenon, while underlying demand remains robust.
Third-quarter earnings outlook and investment behavior are key areas of near-term focus, and large insurers are expected to continue expanding their market share in 2027.
Morgan Stanley noted that third-quarter sales momentum was weak, particularly in the bancassurance segment, mainly due to regulatory restrictions and a slowdown in sales pace following strong growth in the first half of the year.
Despite the high base, early-year "good start" sales were mainly concentrated in the earlier period. The bank expects insurers to set varying sales targets for the 2027 "good start" campaign.
Morgan Stanley stated that despite commission fee restrictions, banks remain optimistic that insurance demand growth will outpace the growth rate of wealth management assets under management, driven by strong demand and attractive products.
On the asset side, given market volatility, some insurers are leaning toward high-dividend stocks, while new asset-liability management rules may further guide investment behavior.
Comments