Standard and Poor's ratings services said that it has revised its outlook on China's insurance sector to 'positive' from 'developing' to reflect expectations that the financial strength of the industry will improve in the medium term, Forbes reported. Factors such as improving operational fundamentals, strong potential growth and regulatory commitments to policy holder interests are likely to offset challenges such as tough competition, lack of talent and weak capitalization, said Forbes, citing S&P in a statement. China's insurance sector is likely to become the world's biggest in terms of premiums within a decade, S&P added.