China's insurance sector to hit $1.41t by 2032

The sector was valued at $688.8b last year. 

China’s insurance sector is projected to reach $1.41t by 2032, garnering a compound annual growth rate (CAGR) of 8.6% beginning in 2024, according to a Fortune Business Insights report.

The sector was valued at $688.8b last year. The market's expansion is driven by rising financial literacy, an aging population, and increasing disposable incomes.

Health and life insurance policies are gaining popularity due to heightened awareness of healthcare costs, particularly among younger demographics. 

In 2023, China's population aged 65 years and older reached 203.4 million, accounting for 14.3% of the total population and growing 4% from the previous year. 

Regulatory bodies, including the China Banking and Insurance Regulatory Commission (CBIRC), are introducing guidelines to address data privacy concerns, as exemplified by the Cybersecurity Administration of China’s 2023 "Interim Measures for the Management of Generative AI Services."

China’s economic rebound in 2023, marked by a GDP growth of approximately 5%, has also bolstered consumer spending power and insurance adoption. 

Increased disposable income and improving financial literacy further drive market growth, with insurers focusing on innovative product offerings and personalised customer experiences to capture market share.