The National Financial Regulatory Administration of China (NFRA) has approved the establishment of a new property and casualty (P&C) joint venture backed by BNP Paribas Cardif, Volkswagen, and Xiaomi, introducing another foreign-invested insurer into the country’s non-life market.
The regulator has cleared the incorporation of Beijing BNP Paribas Tianxing Property & Casualty Insurance, according to a report by Yicai Global. The approval document does not disclose the shareholding structure among the three partners. BNP Paribas Cardif will participate through the insurance arm of BNP Paribas, Xiaomi through a technology affiliate registered in Sichuan province, and Volkswagen through its financial services affiliate in China.
The NFRA said the new insurer must complete its establishment within one year from Oct. 17 and must comply with applicable laws and regulations during the setup process. Li Yunze, director general of the NFRA, said on Oct. 18 that the regulator had approved BNP Paribas Cardif and Volkswagen’s financial services affiliate to jointly establish the insurance company in Beijing. On the same day, the NFRA also authorized Prudential Financial to set up an insurance asset management company in the capital.
BNP Paribas Cardif has been present in China’s life insurance market since 2002 through BOB-Cardif Life Insurance, a 50-50 joint venture with Bank of Beijing. The new P&C entity will operate in China’s non-life segment.
The approval comes against a backdrop of changing property insurance conditions in Asia, where many markets are described as soft or moderate, with generally plentiful capacity. According to Aon’s assessment of the global insurance market at the start of 2025 (Q1 2025), property insurance is broadly categorized as soft across Asia. Property pricing was down by about 1% to 10%, with capacity described as abundant. Underwriting was characterized as flexible, while limits and deductibles were largely flat and coverage terms remained stable.
China’s property segment followed this regional pattern, with soft conditions, price decreases in the same range, abundant capacity, and prudent underwriting, alongside flat limits and deductibles and stable coverage. Hong Kong and Singapore showed similar features, and Korea also reported soft conditions and abundant capacity.
By product, Aon’s first-quarter trends indicate that property is assessed as soft across most Asian markets. India and Japan were exceptions, where property was described as challenging. In China, property, casualty, directors and officers, and many cyber lines were also assessed as soft, indicating that pricing and terms remain competitive in these classes for insurers operating in the market.
For the second quarter of 2025 (Q2 2025), Marsh reported that property insurance rates in Asia declined by about 5%, citing competition among insurers and available capacity. International and regional carriers put pressure on pricing and terms, which in many cases led to lower sub-limits and deductibles for policyholders. Insurers also used long-term agreements to retain accounts, sometimes including discounts and low-claims bonuses. Underwriters, however, were more cautious toward high-hazard sectors and insureds with deteriorating loss experience.
In the third quarter of 2025 (Q3 2025), Marsh said Asia property rates again fell by about 5%, similar to the previous quarter, with competition and capacity remaining high. Some clients were able to secure changes to sub-limits, deductibles and previously restricted coverages.
