Market Trends of China Property & Casualty Insurance Industry
Online Insurance and Digitalization is Driving the Market
The online insurance segment witnessed the fastest growth in China's P&C Insurance market during the forecast period. Because of the easiness of buying online insurance policies, guidance provided regarding discounts, offers, and plans by aggregators boosts the confidence of consumers in buying online insurance. Also, the growing penetration of the internet contributes to the growth of this segment. For instance, in China, there were 1.052 billion internet users at the start of 2023, when internet penetration stood at 73.5%. Furthermore, Fintech is booming, and it’s spreading to the insurance industry. Insuretech is using big data, IoT, block chain and cloud computing to enhance existing insurance products, create new insurance products and revolutionize the industry. In China, where the insurance market is growing at a double-digit rate, the disruption caused by Insuretech is revolutionizing the insurance industry. One of the reasons for this is that the Chinese are rapidly adopting and using online ecosystems. Another reason is that Insuretech is supported by a regulatory environment that encourages innovation. As a result, the insurance industry is being transformed by the emergence of new players in the Insuretech space. Some of these players are integrating insurance products in online ecosystems and promoting innovative innovations.
Increasing Automobile Sales Witnessing Upward Trend of China P&C Insurance Market
In November 2023, China’s vehicle sales increased 27.4% year-over-year (YoY) to 2.97 million units. This was the fourth month in a row of growth, following a 13.8% YoY increase in October. Sales of energy vehicles increased 30% YoY. In the first 11 months of 2023, sales of new vehicles increased 10.8% compared to a YoY increase of 3.3% in 2022. Energy vehicle sales increased 36.7% YoY. Major four-wheeler companies like BYD, Volkswagen, Toyota, Nissan, and Honda recorded the highest growth in annual sales. The growth in sales numbers highlights the increasing demand for cars in China. Moreover, China saw a strong surge in demand for personal mobility and last-mile deliveries post-pandemic. This increasing trend of automobile sales has risen in the China P&C insurance industry.
