China's online property insurance premiums dip slightly

Decline in most popular segment balanced out by growth in others

China's online property insurance premiums dip slightly

Insurance News

By Gabriel Olano

Online property insurance premiums in China suffered a slight decline in 2017, due to the poor performance of the motor insurance sector, industry data has revealed.

Premium income decreased by 1.75% year-on-year to RMB49.35 billion (US$7.8 billion), according to the Insurance Association of China (IAC).

Motor insurance premiums, which make up 62% of the total figure, dropped 23% to RMB30.72 billion (US$4.83 billion), reported Xinhua. However, other insurance segments almost made up for it by surging 80.25%.

Return shipping insurance and travel accident insurance were among the most popular property insurance products in 2017, while more consumers bought insurance through third-party app platforms, rather than at the insurer’s official website.

Online-only insurers, such as ZhongAn, have grown in popularity and are contributing more to total insurance shares. In 2017, online-only insurers’ sales made up 18.97% of total property insurance premium income – a 10 percentage point increase from 2016.

According to IAC official Liu Yang, demand for online non-motor insurance is expected to rise even more as online shopping becomes more popular in China and insurance awareness among the population increases.

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