Insurances

The Insurances market in China is projected to reach a market size of US$980.80bn in 2024.
Non-Life Insurances dominates this market with a projected market volume of US$541.60bn in 2024.
The average spending per capita in the Insurances market in China is estimated to be US$684.60 in 2024.
When compared globally, the United States is expected to have the highest nominal value in the Insurances market, reaching US$3.8tn in 2024.
The gross written premium is anticipated to show an annual growth rate (CAGR 2024-2029) of 1.39%, resulting in a market volume of US$1.05tn by 2029.
Once again, the United States is projected to generate the highest gross written premium in 2024, amounting to US$3.8tn.
China's insurance market is witnessing a surge in demand for health insurance as the population becomes more aware of the importance of comprehensive coverage.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in China has been experiencing significant growth and development in recent years. Customer preferences in the Chinese insurance market have been shifting towards more comprehensive coverage options, including health, life, and property insurance. Customers are increasingly seeking personalized and digital insurance products that offer convenience and flexibility. Additionally, there is a growing demand for insurance products that provide protection against critical illnesses and offer long-term savings and investment opportunities. Trends in the market indicate a rise in the adoption of Insurtech solutions, such as artificial intelligence, big data analytics, and blockchain technology. These innovations are streamlining insurance processes, enhancing customer experience, and improving risk assessment and pricing strategies. Moreover, there is a trend towards strategic partnerships between insurance companies and technology firms to leverage each other's strengths and expand market reach. Local special circumstances in China, such as the country's large population, rapid urbanization, and increasing disposable income levels, are driving the growth of the insurance market. The Chinese government's initiatives to promote insurance penetration and financial inclusion are also contributing to market expansion. Additionally, changing demographics, such as an aging population and a growing middle class, are creating new opportunities for insurers to offer tailored products and services. Underlying macroeconomic factors, such as stable economic growth, regulatory reforms, and a supportive policy environment, are fueling the development of the insurance market in China. The country's robust digital infrastructure and widespread internet penetration are facilitating the distribution of insurance products online, making them more accessible to a larger customer base. Furthermore, the increasing awareness of risk management and the importance of insurance coverage among Chinese consumers are driving the overall growth of the market.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.