Coronavirus likely to hurt Ping An's business in H1 2020

Agent-driven sales have slowed down due to the virus.

China’s Ping An Insurance is expecting the coronavirus to hurt their H1 2020 business due to a slowdown in agent-driven sales, Reuters reports.

Current guidelines set forbade agents from visiting customers, but they are trying to transition to a new work model in order to maintain business, co-CEO Jessica Tan said.

In China, insurers still generate most of their sales through millions of agents across the country even if product distribution through digital channels is growing.

Whilst she declined to give specific guidance, she believes business will bounce back come H2, anchored by a likely recovery in China.

In its annual report, Ping An said the virus may affect the quarterly or yields of credit assets and investment assets, adding that the extent of the impact will depend on how long the outbreak lasts.

Here’s more from Reuters.