China to eclipse US as world's largest insurance market by 2030s

The CAGR hit 16% for the non-life segment and 17% in life from 2013-2017.

China is on track to surpass the US as the world’s largest insurance market over the next ten to fifteen years as premium volumes balloon in line with the government’s blockbuster infrastructure projects, reports Caixin which cited reports from Swiss Re.

China’s dominance may occur sometime by 2030s and will be reinforced Belt & Road initiative as infrastructure projects significantly boosts demand for insurance. The report estimates that BRI-associated projects in countries outside China could generate a cumulative insurance demand of $28b by 2030.

Also read: Web-based insurance policyholders in China hit 222 million

From 2013-2017, the compound annual growth rate (CAGR) hit nearly 16% in the non-life segment and 17% in the life business. However, CAGR will likely taper off to 10% and 11% by 2021 and 2022.

In 2018, the insurance industry’s premium income rose 3.9% YoY to $566.29n (CNY3.8t) in premium income.