China’s non-life insurance market shifts focus toward specialty lines in 2024

Motor insurance remains the largest segment at about 54% of premiums.

China’s non-life insurance market continued to grow in 2024, with gross written premiums rising 6.5% to $231.6b, according to Gallagher Re’s Asia-Pacific’s Market Watch report. 

Growth remains ahead of the broader economy but is slowing from the 8.4% annual average seen between 2014 and 2024, reflecting a maturing market. PICC, Ping An, and China Pacific Insurance still dominate, holding about 65% to 70% of total premiums, supported by a regulatory framework that favours domestic reinsurers under the C-ROSS solvency regime.

Motor insurance remains the largest segment at about 54% of premiums. 

Strong demand for electric and new-energy vehicles is creating new business, although higher repair costs and more frequent claims continue to pressure margins. 

Insurers are increasingly shifting focus toward non-motor and specialty lines to improve underwriting results. 

Health and agriculture also remain key growth areas, accounting for 12.1% and 8.8% of premiums, supported by government policy and product innovation.

A series of strong tropical cyclones between June and September 2025 caused property and motor losses in major coastal provinces and cities, but the wider market impact stayed limited due to China’s natural catastrophe protection gap of over 90%. 

Damage to renewable energy assets has increased scrutiny on specialty risks, with some reinsurance pricing rising at the January renewals.

Insurers continue to face weaker investment income as China remains in a low interest-rate environment. 

Ten-year government bond yields dropped to around 1.70% in August 2025 from 2.19% a year earlier, pressuring earnings for insurers with heavy bond allocations. 

Meanwhile, the economy grew 5.0% in 2024, slowing from 5.4% in 2023, with the IMF expecting about 4.8% growth in 2025. Inflation eased slightly, and interest rates were kept steady through July.