A new report predicts that revenue from China’s insurance sector will continue to grow by 8.1% yearly for the next decade, a higher growth rate than the global average of 5.2%.
The report, published by Allianz, projected that the nation’s insurance market will be worth US$1.6 trillion by 2033, accounting for 15.2% of the world’s insurance premium revenue, compared to its current share of 11.4%.
According to a report from Yicai Global, the life insurance market will remain the biggest at an annual growth rate of 7.1%, which translates to US$757.8 billion by 2033. The property and casualty (P&C) markets are also in for splendid growth, expanding by 8.2% a year to post US$474.5 billion. Health insurance will rise at a rate of 10.2% year-on-year for US$362.7 billion in a decade.
Despite the strong numbers, this is still considered a slowdown compared to the sector’s growth in the last decade. The report notes that life insurance in China grew 9.9% yearly from 2012 to 2022; P&C recorded 9.8% and health insurance a staggering 25.8% in the same period.
As proof of the sector’s growth and stability, China’s National Financial Regulatory Administration revealed that the market’s net worth reached US$4.04 trillion in the first quarter of 2023.
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