, China

Life insurance industry remains muted amids pandemic challenges in China

Most life insurers reported negative growths in April.

Though improving, China’s life insurance industry continues to remain muted amidst challenges brought by the resurgence of COVID-19 in the country, according to a market report by UOB Kay Hian.

As of April, six of the top life insurers in China recorded a growth in life insurance premiums of 0.8% compared to 0.4% in March. PICC Life was the only insurer of the six that registered a double-digit growth in premiums in April at 22.1% YoY. It is followed by China Pacific Insurance at 4% YoY, and New China Life 3.8% YoY.

Slowdown cause

UOB Kay Hian identified two factors that caused the slowdown in premium income growth in life.

First was a decline in consumers’ propensity to consume, which resulted in a decrease in demand and made life insurance business expansion more challenging. 

According to the annual reports of insurance companies (Ping An, CPIC Life, and CPIC P&C) for 2021, Shanghai contributed 5.8%, 3.4%, and 7.7% of the total original premium income. Thus, the decline in Apr 22 premiums was partly due to the lockdown in Shanghai.

The second was agency reform. 

“As a result of China Life’s and Ping An's stringent channel reforms, their monthly life insurance premiums have declined. Looking ahead, the recurrence of the pandemic is expected to continue impacting the major cities, in addition to the annual decline of agents. China insurance companies are likely to face a challenging second quarter,” UOB Kay Hian said.

You may also like:

How has China's insurance industry fared amidst strict lockdowns?

bolttech announces partnership with Vietnam’s largest telecom operator

FWD gets greenlight for IPO

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Peak Re names new underwriting chief
He has had a decade of experience in a similar role.
Dai-ichi Life buys NZ-based insurer for $630m
The acquisition was made through Dai-ichi Life International Holdings.
China Life delists from US stock exchange
The insurer said they would apply for ‘voluntary delisting’.
BOC HK, BOC Life launch green savings insurance plan
It offers up to a 3% annualised guaranteed rate of return at policy maturity.