China’s premium share in the global market is expected to reach 19 percent in 2030, up from 10 percent in 2019, given supportive policies, increasing income and risk awareness, as well as evolving digitalization, research from Swiss Re showed.
“The rebound in the insurance market has been led by emerging markets, particularly emerging Asia. China will remain the fastest-growing market over the next few years,” said Jerome Haegeli, chief economist of Swiss Re Group, one of the world’s largest reinsurance companies.
Meanwhile, as China is committed to further opening-up, foreign investors are expected to see their assets growing and their involvement intensified in the nation’s financial market, Swiss Re’s research showed.
According to Haegeli, China’s insurance market will continue to enjoy fast growth in the coming few years, and foreign insurers will see a rosy picture as the industry regulator is committed to provide more convenience for foreign investors’ business operations in the country. In December of 2019, the industry regulator lifted a foreign ownership cap on joint venture life insurance companies, a move experts said indicated the country’s resolve to advance opening-up of its financial sector.
As the nation’s 14th Five-Year Plan (2021-25) highlights the importance of green development to deal with the climate change challenge, green insurance also will be one of the emerging areas to be developed, according to Swiss Re. Meanwhile, the health insurance sector also has a huge potential due to the country’s fast-growing aging population. China’s health insurance saw a year-on-year increase of 16 percent last year, reaching 817 million yuan ($125.7 million).
Wang Hao contributed to this story