Analysts say that insurers are likely to see improving fortunes during 2017 following a disappointing 2016 for some. Leon Qi, head of Greater China financial research with Daiwa said, “Life insurance sector headwinds in 2016 have been turning into tail winds since late 2016. The trajectory of market interest rates in China should help prevent further declines in new money investment yield. Ultimately, interest-rate normalisation would likely help normalise their stock valuations relative to the current super-bearish levels.” Many have suggested that higher interest rates would benefit insurance companies by boosting investment yields. In another positive development, life insurance products continue to be a driver of new business. The industry is expecting continued strong demand for life insurance, particularly protection-type policies, in 2017. Sales forecasts of life insurance products have predicted a surge of 29% in 2017.