Life insurance - China

China

China's Life insurance market market is projected to reach a staggering US$0.44tn in 2024, in terms of gross written premium.
This signifies the substantial size of the market segment within the country.
Furthermore, the average spending per capita in the Life insurance market market is estimated to be US$306.60 in the same year, reflecting the significant financial commitment individuals are making towards insurance coverage.
Looking ahead, the market is expected to experience a steady growth rate, with a compound annual growth rate (CAGR 2024-2029) of 0.45%.
This growth trajectory is anticipated to result in a market volume of US$0.45tn by 2029, indicating the continuous expansion and potential of the Life insurance market sector in China.
In a global context, it is noteworthy that the United States leads the way in terms of gross written premium, with an impressive figure of US$1,288.0bn in 2024.
This highlights the significance and dominance of the American market in the Life insurance market industry, surpassing other countries in terms of generated premiums.
China's life insurance market is experiencing rapid growth, driven by rising middle class incomes and increasing awareness of the need for financial protection.

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Analyst Opinion

Over the past decade, the Life insurance market in China has experienced significant growth and transformation. Customer preferences in the Chinese Life insurance market have been shifting towards more comprehensive coverage options, including retirement savings and health-related policies. This change is driven by an aging population and increasing awareness of the importance of financial planning for the future. Trends in the market show a rise in digitalization and online distribution channels for Life insurance products in China. Insurers are leveraging technology to reach a wider customer base and provide more personalized services. Additionally, there is a growing demand for innovative products that offer flexibility and customization to meet individual needs. Local special circumstances in China, such as the government's push for financial inclusion and regulatory reforms to improve market transparency, have also influenced the development of the Life insurance sector. These factors have created a more competitive landscape and encouraged insurers to enhance their product offerings and customer service. Underlying macroeconomic factors, such as steady economic growth, rising disposable incomes, and a growing middle-class population, have provided a favorable environment for the expansion of the Life insurance market in China. As more people seek to protect their financial well-being and secure their future, the demand for insurance products is expected to continue growing in the coming years.

Methodology

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.