The Chinese general insurance market was valued at CNY1.36 trillion of direct written premiums in 2020 and is expected to grow with a CAGR of more than 9% during the forecast period 2021-2025. However, the forecast remains shadowed by regulatory changes, ongoing economic challenges, and the resurgence of the Coronavirus (COVID-19) outbreak. Despite being the second-largest general insurance segment globally, China’s general insurance penetration is way below developed markets’ average, which is mainly because the segment’s growth is disproportionately reliant on motor insurance which has been negatively impacted in recent years due to regulatory restrictions, economic and pandemic related challenges. In 2020, motor insurance dominated the Chinese general insurance market, followed by personal accident & health (PA&H), and property insurance.
Overview of China general insurance market
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What are the market dynamics of the Chinese general insurance market?
China’s general insurance segment recorded a slowdown in growth in 2020 due to flat growth in the motor insurance business Motor insurance was impacted by the ongoing regulatory reforms, as well as low growth in automobile sales, partly due to the pandemic outbreak. Digitalization in motor insurance gained traction, as insurers adopted insurtech such as artificial intelligence (AI) and blockchain in underwriting, loss assessment, and claim settlement. PICC Property & Casualty adopted digital claims settlement and loss assessment in motor insurance using AI. The majority of its family motor insurance customers used online services. In 2020, Ping An strengthened its online customer services for the Property and Casualty insurance business by providing safe, convenient auto insurance services including ‘One-Click Policy Renewal’ and ‘One-Click Claims Services’ through the ‘Ping An Auto Owner’ app. CPIC adopted AI and big data, in order to analyze static photos and vehicle video for fast loss determination. This enables the identification of more than 100 types of vehicle components. China Life Property & Causality Insurance established an incubation center to concentrate on underwriting and claim settlement using image recognition, AI, and big data allowing for remote authentication.
China’s rapidly growing middle-class population contributed to establishing a strong infrastructure to support digital innovation. As of March 2020, 99% of internet users in China utilized their mobile phones to surf the internet. 710 million users, accounting for 78.6%, shopped online, according to the China Internet Network Information Center (CNNIC). According to Swiss Re, digital currency in China accounts for more than one-third of GDP and is expected to reach over 45% of GDP by 2030. Digital transactions will drive demand for digital insurance, with cyber insurance premiums in China expected to reach over CNY450 million by 2025. China Life P&C signed an agreement with 360 Group to launch a ‘Net Anxin’ cyber security insurance product to reduce cyber risk.
The general insurance segment made a loss during 2017–2020. Factors including soft market conditions during that period, high loss exposure to Nat-Cat events, and road accidents contributed to the high combined ratio. The challenging operating conditions in motor insurance are expected to continue over the short term, with supply chain disruptions impacting new vehicle stock and insurance regulations further lowering premium prices. Insurers remain vulnerable to frequent losses linked to floods, storms, and low-frequency/high-severity earthquakes. As of December 2021, Fosun International Ltd, AIA Group Ltd, and Power Corporation of Canada were the top three most active companies based on the change in active jobs month on month (MoM). Among the top three companies, AIA Group Ltd is one of the more prominent health insurance providers in the country. Among the insurance services, AIA Group Ltd reported the highest number of active jobs, in December 2021.
What are the key categories of the Chinese general insurance market?
China’s general insurance market is categorized based on lines of business into the property, motor, liability, financial lines, marine aviation & transport (MAT), personal accident & health (PA&H), and miscellaneous. Motor insurance accounted for the major share of the Chinese general insurance market in 2020, followed by PA&H, property, liability, financial lines, MAT, and miscellaneous. Motor insurance is the largest insurance line, accounting for more than 60% share of general insurance DWP in 2020.
The penetration of commercial motor insurance is very low in the country, due to a lack of insurance availability and high premiums. PA&H insurance provided by general insurers recorded the highest growth among all general insurance lines in 2020 and benefitted from rising medical expenses and tax exemptions. Agriculture or livestock accounted for the majority of the Chinese property insurance in 2020, followed by industrial multi-risk, and construction & engineering insurance.
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Which are the major insurers in the Chinese general insurance market?
China People’s Insurance (PICC) accounts for the largest market share by direct written premiums in 2020, followed by Ping An Property & Casualty, China Pacific Property Insurance Company, Ltd – CPIC, China Life Property And Casualty Insurance Company Ltd, and China United Property Insurance Company Ltd. A robust distribution system, comprising a large network of local agents, the development of a general insurance ecosystem, AI-driven digital distribution, and customer-centricity, supported the business growth of Ping An. In 2018, China gradually eased the restrictions on foreign insurers, allowing companies that are 100% foreign-owned to operate in the country. After that, Allianz became the first insurer to receive approval for setting up a wholly-owned holding company.
China general insurance market, by key companies
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Market report scope
|Market size (year – 2020)||CNY1.36 trillion|
|Growth rate (CAGR)||>9%|
|Base year for estimation||2020|
|Key categories||Property, motor, liability, financial lines, marine aviation & transport (MAT), personal accident & health (PA&H), and miscellaneous.|
|Key insurers||China People’s Insurance (PICC), Ping An Property & Casualty, China Pacific Property Insurance Company, Ltd – CPIC, China Life Property And Casualty Insurance Company Ltd, and China United Property Insurance Company Ltd.|
This report provides a comprehensive analysis of the China insurance industry-
- It provides historical values for the Chinese insurance industry for the report’s 2016-2020 review period, and projected figures for the 2020-2025 forecast period.
- It offers a detailed analysis of the key categories in the Chinese insurance industry, and market forecasts to 2025.
- It profiles the top life insurance companies in China and outlines the key regulations affecting them.
Reasons to Buy
- Make strategic business decisions using in-depth historic and forecast market data related to the Chinese insurance industry, and each category within it.
- Understand the demand-side dynamics, key market trends, and growth opportunities in the Chinese insurance industry.
- Assess the competitive dynamics in the Chinese insurance industry.
- Identify growth opportunities and market dynamics in key product categories.
China People’s Insurance (PICC)
Ping An Property & Casualty
China Pacific Property Insurance Company, Ltd – CPIC
China Life Property And Casualty Insurance Company Ltd
China United Property Insurance Company Ltd
China Continent Property & Casualty Insurance Company Ltd
Sunshine Property and Casualty Insurance Company Ltd
Taiping General Insurance Company Ltd
Zhong An Online Property Insurance
China Export & Credit Insurance Corporation
Table of Contents
Table of Contents
Regulatory and Compliance
Key Market Trends
Summary Trends and KPIs
Key Trends by Line of Business
Financial Lines Insurance
Marine, Aviation and Transit Insurance
Personal Accident and Health Insurance
Regulatory and Compliance
Frequently Asked Questions
The Chinese general insurance market was valued at CNY1.36 trillion of direct written premiums in 2020.
China’s general insurance market is expected to grow by a CAGR of more than 9% during 2021-2025.
China’s general insurance market is categorized based on lines of business into the property, motor, liability, financial lines, marine aviation & transport (MAT), personal accident & health (PA&H), and miscellaneous.
China People’s Insurance (PICC), Ping An Property & Casualty, China Pacific Property Insurance Company, Ltd – CPIC, China Life Property And Casualty Insurance Company Ltd, and China United Property Insurance Company Ltd. are the key players in the Chinese general insurance market.