China Online Insurance Market Size
|Study Period||2019 - 2028|
|Base Year For Estimation||2022|
|Forecast Data Period||2023 - 2028|
|Historical Data Period||2018 - 2021|
*Disclaimer: Major Players sorted in no particular order
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China Online Insurance Market Analysis
- The technology boom has hit China especially fast. The China’s general insurance industry is forecast to grow by 3.8% in 2020, compared to 5.7% registered in 2019. Enabled by the rapid increase in mobile and internet users, tech firms have created large-scale ecosystems serving a community with strong online consumption habits and a heavy reliance on mobile devices. These online ecosystems have come to symbolize the Chinese tech scene and are significant contributors to the economy. The fast increase in the number of tech companies and the rapid growth of online ecosystems are based on strong encouragement of innovation and support for entrepreneurship. The most established tech firms have created online ecosystems that encompass all aspects of life, ranging from e-commerce to lifestyle services to financial services. They have reached scales that are large even by global standards.
- Buying personal insurance online is becoming more popular in China, with premiums increasing by 13.6% year on year. personal insurance premiums coming from online channels totalled RMB211.08 billion (approx. SG$43.5 billion). Health insurance grew the fastest, with premiums increasing by 58.8% to RMB37.48 billion. This was most likely due to increased concerns regarding health among the public due to the COVID-19 pandemic.
- The share of online insurance premiums is expected to grow even further in the coming years, as technological innovation and e-commerce continue to develop in China. Insurers will become increasingly active in deploying new digital technologies to reinforce their long-term competitive edge, after the pandemic forced them to re-evaluate their digital capabilities in handling sales, underwriting, risk assessment and claims. China’s insurance regulator is expected to introduce additional measures to oversee the online insurance market in order to rein in risks and protect both insurer’s financial soundness and consumers’ interests.
China Online Insurance Industry Segmentation
Online insurance allows the customer to buy an insurance product with few clicks at any point of time at the comfort of home and without any hassles to submit physical documents. Buying Insurance online is expedient, fast, and cost-effective. The China Online Insurance Market can be segmented by Type into Life Insurance and Non-Life Insurance. Non- Life Insurance can be further segmented into Health Insurance, Accident Insurance, Air Travel Insurance, Dental Insurance, and Other Non-Life Insurance. This Chine Online Insurance Market report aims to provide a detailed analysis of the online insurance market in China. It focuses on the market dynamics, recent trends, and insights into the online insurance market in China. It also analyses the major players and the competitive landscape along with the Impact of Covid-19 on the market.
China Online Insurance Market Trends
This section covers the major market trends shaping the China Online Insurance Market according to our research experts:
The Online Health Insurance is showing rapid growth than online life insurance in China
- Chinese Big Tech (big data, cloud computing, AI, blockchain) and platform ecosystems could further disrupt the global insurance industry. Firstly, ecosystems might be owned or driven by tech giants pushing insurers to the periphery, with dire consequences for access to customers and data. Second, “early adopter” Chinese players such as Baidu, Alibaba and Tencent, which have already built a preeminent position in fintech ecosystems, could disrupt other markets as well.
- China’s highly concentrated insurance market rose to #2 worldwide and should continue to grow by double-digits. Since the global financial crisis in 2008, insurance premiums (w/o health) have almost quadrupled to EUR 417bn (2018), making China the second biggest insurance market in the world. And there is still plenty of catch-up potential: Premiums per capita amount to EUR 294 in China; in all the other top five markets, people spend roughly ten times as much on insurance.
- Regulatory hurdles to enter China’s insurance market have been lowered, and recent policy announcements are favorable for the further development of insurtech firms. The mid 2018-2019 stimulus (equivalent to 5% of GDP; a further 2.7% is expected in 2020), the accommodative monetary conditions targeted to the private sector and “Made in China 2025” are creating a conducive environment for insurtech companies to thrive, and encouraging the participation of foreign investors. The Chinese authorities’ push towards SMEs could unveil hidden jewels in the mid-cap insurance market segment for strategic partnerships along the insurance value chain.
- China will be essential to the insurance world in a platform economy, thanks to scale, purpose and agility. The Chinese consumer is a godsend for insurtech companies, and tech-intensive distribution channels and products will experience exponential growth. In addition, regulators and authorities have the means and the will to nurture not only national but global champions in technologies and services. Global insurance giants can tap into the booming Chinese insurance x tech space, while their experience, especially from Europe (underwriting and product development, asset-liability management, privacy and consumer protection, for e.g.) could prove useful. also paid out for flight delays while customers were reportedly still at the airport. The company has sold approximately six billion policies to more than 460 million people.
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The active mobile users in Online Insurance Services in China is all time high.
In China, the quarterly active mobile users in online insurance services witnessed a growing trend in the past few years, increasing from roughly 316 million in the first quarter of 2017 to almost 800 million in the third quarter of 2020. In the second quarter of 2020, as the offline services were limited by the coronavirus control, the quarterly active mobile users reached a three-year high, amounting to approximately 815 million
China Online Insurance Industry Overview
The report covers the major players operating in the Chinese online insurance market. In terms of market share, a few of the major players currently dominate the market studied. However, the market is highly fragmented, due to the presence of a large number of players in the country. Therefore, companies have been focusing more on enhancing their online presence through collaborations and partnerships. The Major players include ZhongAn Insurance, FWD, Instony, Datebao, Cheche365, Huize, eBaoTech, Suidihuzhu, Bowtie, and 51Shebao.
China Online Insurance Market Leaders
China Pacific Insurance Company
Ping An Insurance
Taikang Life Insurance
*Disclaimer: Major Players sorted in no particular order
China Online Insurance Market News
- In March 2021, China’s banking and insurance regulator CBIRC revised its “Rules on Internet Insurance Business” to address issues in the marketplace amid a sharp surge in companies seeking to join the online insurance sector. In 2020, a total of 7,741 enterprises involved with online insurance registered with Chinese authorities, representing a rise of 93% compared to the previous year.
- In January 2021, Zhong An Insurance, the first 100% digital Chinese insurer announced implementing a diversification strategy to avoid being overly dependent on their partners. ZhongAn has reduced the number of intermediary sales in favor of D2C sales. To do so, the digital insurer is banking on technology and customer experience. It uses artificial intelligence to automate 70% of its online customer service.
China Online Insurance Market Report - Table of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 INSURTECH BUSINESS MODELS FOR CHINA
4.2.1 EVOLUTION OF BUSINESS MODELS
126.96.36.199 TECHNOLOGY ENABLEMENT
188.8.131.52 ECOSYSTEM INTEGRATION
184.108.40.206 FUTURE DERIVATIVES OF EXPANSION
4.2.2 ECONOMIC EVOLUTION
4.2.3 SUCCESS FACTORS FOR INSURETECH BUSINESS MODEL
4.2.4 RISKS AND UNCERTAINTIES
4.3 Market Drivers
4.4 Market Restraints
4.5 Porters 5 Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of Covid-19 On The Industry
5. MARKET SEGMENTATION
5.1.1 Life Insurance
5.1.2 Non-Life Insurance
220.127.116.11 Health Insurance
18.104.22.168 Pet Insurance
22.214.171.124 Dental Insurance
126.96.36.199 Other Non-Life Insurance
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Mergers & Acquisitions
6.3 Company Profiles
6.3.1 ZhongAn Insurance
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
China Online Insurance Market Research FAQs
What is the current China Online Insurance Market size?
The China Online Insurance Market is projected to register a CAGR of 11% during the forecast period (2023-2028).
Who are the key players in China Online Insurance Market?
ZhongAn, China Pacific Insurance Company, Ping An Insurance, PICC and Taikang Life Insurance are the major companies operating in the China Online Insurance Market.
China Insurance Industry Report
Statistics for the 2023 China Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Insurance analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.