Growth continues for China's insurance market
The country came second behind the US in terms of total premium volume in 2020.
The Chinese insurance market continues to grow on the world stage, snapping up 10.4% of the global market in 2020, according to a Swiss Re report.
The country came second behind the United States in terms of 2020 total premium volume at $655.8b, a 6.2% year-on-year growth from $617.3b in 2019.
The country’s non-life insurance market rose 4.4% last year on the back of a 15% growth in medical insurance, but motor premiums also dipped 3% following the de-tariffication of the motor industry and lower new car sales volume.
Motor insurers’ rates are expected to go down even further, leading to a 7% drop in real-term premiums in 2021.
On the other hand, life insurance premiums rose 2.8% in 2020 led by a strong economic recovery, high demand for risk protection, the adoption of digital channels and customer engagement, amongst other factors, the report said.
Life premiums are forecasted to hit a below-trend 6.2% in 2021 and 7.7% in 2022 as stronger regulations in 2021 will partly offset the gains from economic recovery and higher insurance awareness, the report said.
There have also been changes in the segment’s portfolio mix, with the regulator requiring less short-term investment-linked products and more protection-focused policies like mortality and health plans. There can be a 17.5% real growth in protection-type business and 10% growth in savings business in 2021, the report said.