Market Size of China Car Insurance Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 90.59 Billion |
| Market Size (2029) | USD 118.74 Billion |
| CAGR (2024 - 2029) | 5.56 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Car Insurance Market Analysis
The China Car Insurance Market size in terms of gross written premiums value is expected to grow from USD 90.59 billion in 2024 to USD 118.74 billion by 2029, at a CAGR of 5.56% during the forecast period (2024-2029).
The revenue of the car insurance market in China has observed continuous growth over the years resulting in an increasing number of players entering the market to reap the existing margin. Passenger cars in the region occupy a significant share of automobile sales, resulting in car insurance emerging as a major product in the automobile insurance market. Private car ownership rates in China have observed continuous growth over the years, with more households purchasing and owning a car. In line with this, China's regulations requiring drivers to be insured with a minimum standard before driving is leading to an increasing number of car insurance policies being bought and sold.
The price of the car exists as a major factor while offering car insurance with the availability of high-quality safety standards, making them qualify for premium discounts. Sedans and SUVs exist among the car segment in the country, with more than 80% of the passenger car sales share, resulting in car insurance providers focusing specifically on these segments for their car insurance products. The insurance premium rate of the leading electric and hybrid vehicle market in China is significantly higher in comparison to internal combustion vehicles because of the higher loss ratio incurred by the insurance providers, making it an emerging car insurance segment in the country.
With rising digital innovations in the insurance market car insurance providers are offering their products through online websites and apps where the car owner can renew, buy as well as claim their insurance. The rising insurtech market in the country is further driving digital car insurance products. In addition, the launch of telematics-enabled car insurance products in the country is minimizing the existing asymmetric information and risk involved between the buyer and seller. These rising innovations and market trends are developing a positive growth environment for car insurance in China.
