Life and Non-life Insurance Market in China - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Life and Non-life Insurance Market in China is segmented by Type (Life Insurance and Non-life insurance) and Distribution Channel (Direct, Agents, Online, and Other Distribution Channels).

Market Snapshot

Life and Non Life Insurance Market in China Overview
Study Period: 2016 - 2026
Base Year: 2020
CAGR: <6 %
Life and Non Life Insurance Market in China Key Players

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The life and non-life insurance market in China is estimated to record a CAGR of approximately 6% during the forecast period.

In 2020, the insurance companies in China received total premium revenue worth approximately CNY 4.5 trillion. The most revenue is derived from life insurance, with a value of around CNY 3.3 trillion. Premium revenue from property insurance was around CNY 1.2 trillion. China is the world's second-largest insurance market after the United States. The China Banking and Insurance Regulatory Commission allowed foreign investors to raise their stakes in life insurance companies to 100% from January 1, 2020, from the previous ceiling of 51%, the removal of the ownership cap to enhance the effectiveness of foreign-owned insurers in formulating and executing their business strategy in terms of product offerings, risk management, asset-liability management, corporate governance, and investment allocation approach. Greater participation from institutional investors focused on long-term investment outcomes may help diversify the domestic capital markets and reduce dependency on retail investors.

The impact of COVID-19 on life insurance is mixed. The economic slowdown and implementation of stringent containment measures are hindering agent sales. However, the demand will benefit from the rising risk awareness and increasing focus on protection products, as volatility in the financial markets is undermining the appeal of savings products. Insurers are fast adopting digital channels in lieu of face-to-face sales and accelerating product development to better align with public demand for protection. Overall, life premium growth is expected to average around 2% this year before picking up too close to 10% in 2021. Non-life insurance premiums continued to grow strongly in 2019 (+11.8%). Health, guarantee, agricultural, and liability insurance outperformed. Supportive government policies are a key driver behind the growth of agricultural and liability insurance. In contrast, motor premium growth slowed to below 2% in 2019.

Foreign life insurers generally focus on margin and value creation and are more prudent in risk management. The removal of the ownership limit will give foreign investors the chance to buy out their local shareholders, which will give the foreign companies greater or full flexibility in determining and implementing their strategies. This reduces internal conflicts between foreign and local shareholders as well as the cost of internal communication.

Scope of the Report

Life and non-life insurance are the most widely demanded products. A complete background analysis of China's life and non-life insurance market includes an assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles in the report. The life and non-life insurance market in China is segmented by type (life insurance and non-life insurance) and distribution channel (direct, agents, online, and other distribution channels). For each segment, the market sizing and forecasts have been done based on value (USD million).

By Type
Life Insurance
Individual
Group
Non-life Insurance
Home
Motor
Other Non-life Insurances
By Distribution Channel
Direct
Agency
Banks
Other Distribution Channels

Report scope can be customized per your requirements. Click here.

Key Market Trends

Increase in the Number of Insurance Companies in the Market

The number of insurance companies is increasing in the market. The number might increase further, as China’s insurance regulatory commission had allowed FDI investments in insurance up to 100%. The revision of insurance regulations will attract more market participants in the sector, stimulate market strength, push Chinese and foreign-invested financial institutions to improve their competitiveness, and benefit China regarding learning from advanced international ideas and experience. The further opening of China and establishing a fair market environment will greatly help promote full competition in the Chinese insurance sector, improve the shareholding structure of related financial institutions, regulate shareholder behavior, and form a rational and diversified market system. In 2019, 235 insurance companies were registered in China.

Life and Non Life Insurance Market in China Share

Increase in Insurtech Funding Transactions

There are 122 insurance tech startups in China. The Chinese insurance market doubled over the past six years. However, insurance penetration is comparatively less in developed markets, with approximately 3.5%-4%. Zhong An Online P&C Insurance offers online property and casualty insurance services. It is China’s first online-only insurer, whose initial investors included Alibaba’s finance arm, Tencent, and Ping An Insurance (Group) Co. The largest shareholder is Alibaba affiliate Zhejiang Ant Small & Micro Financial Services Group. Zhong An developed more than 100 products and sold 1.6 billion insurance policies for more than 250 million customers since commencement. The company also has a license for motor insurance. Insurtech companies are increasing across countries, where a variety of technologies are set to transform the traditional insurance industry. Many insurers have already transformed themselves digitally to offer convenience, security, choice, and comparison to their customers.

Life and Non Life Insurance Market in China Growth

Competitive Landscape

The report covers the major players operating in the life and non-life insurance market in China. The market is consolidated, and the major market share is held by a few companies. The life and non-life insurance market is likely to grow during the forecast period, due to the step taken by the government to deregulate and increase FDI in insurance.

Recent Developments

China wants to use crypto for insurance

China is starting a new experiment with its new digital yuan, a central bank digital currency (CBDC) that runs on a blockchain platform controlled by the People’s Bank of China. And, this time, it’s dabbling with insurance.
The bank has announced a pilot project to extend the currency to the insurance sector, through a partnership with the country’s top insurer, Ping An.

China’s aerospace development boosts the insurance market

The rapid development of the aerospace sector in China has led to a boom in space insurance, with two insurance heavyweights alone covering nearly 300 satellites and rockets and the number continues to rise.  China's aerospace sector recorded series of milestones over recent months. Just after the Zhurong Mars rover reached the surface of Mars in May, three Shenzhou-12 taikonauts entered the country's own Tianhe space station several days ago. Besides, China has seen a surge in commercial space development over recent years, with the country's space insurance sector growing in lockstep. In China, space insurance providers include insurance heavyweights such as PICC Property and Casualty Co and Ping An Property and Casualty Insurance Co, as well as specialists like Jiangtai Insurance Brokers.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain Analysis

    5. 4.5 Market Opportunities

    6. 4.6 Porter's Five Forces Analysis

    7. 4.7 Technology Snapshot

    8. 4.8 Consumer Behavior Analysis

    9. 4.9 Government Regulation in the Market

    10. 4.10 Impact of the COVID-19 Pandemic

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Life Insurance

        1. 5.1.1.1 Individual

        2. 5.1.1.2 Group

      2. 5.1.2 Non-life Insurance

        1. 5.1.2.1 Home

        2. 5.1.2.2 Motor

        3. 5.1.2.3 Other Non-life Insurances

    2. 5.2 By Distribution Channel

      1. 5.2.1 Direct

      2. 5.2.2 Agency

      3. 5.2.3 Banks

      4. 5.2.4 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 China Life Insurance (Group) Co.

      2. 6.2.2 China Pacific Insurance

      3. 6.2.3 China Ping An Insurance (Group) Co.

      4. 6.2.4 China People Insurance Group Co.

      5. 6.2.5 Taikang Life Insurance Co.

      6. 6.2.6 Xinhua Insurance

      7. 6.2.7 American International Assurance Co. Ltd

      8. 6.2.8 Sunshine Insurance

      9. 6.2.9 Funde Sino Life

      10. 6.2.10 China Taiping Insurance Group Co.

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Life and Non-life Insurance Market in China market is studied from 2016 - 2026.

The Life and Non-life Insurance Market in China is growing at a CAGR of <6% over the next 5 years.

China Life Insurance (Group) Co, China Ping An Insurance (Group) Co, China Pacific Insurance, China People’s Insurance Group Co, Xinhua Insurance are the major companies operating in Life and Non-life Insurance Market in China.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!