Life insurance - China | Statista Market Forecast

China's Life insurance market market is projected to reach a staggering US$439.20bn 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 0.68%.
This growth trajectory is anticipated to result in a market volume of US$454.20bn 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$1.3tn 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.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. 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.

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, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

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.

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.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.