Insurance in China
By Robert Collins
COO, Crossbordr
China is the second biggest insurance market in the world by premium volume, having surpassed Japan in 2016. With favourable macro-economic conditions prevailing, and a massive population of 1.4 billion people, the Chinese insurance market has grown dramatically. Nonetheless, the penetration rate for insurance in China remains low compared to Western measures. This leaves plenty of headroom for growth in the China market.
InsurTech in China
The Chinese market presents tremendous opportunities for InsurTech. China is a proven leader in the world of InsurTech. Internet insurance companies in China wrote premiums of just under US$25 million.1 Property and casualty insurance companies in China collected US$12 billion in premiums from online sales – a total of 92% of online insurance sales were from the websites of non-life insurers.2
Millennials and Generation Y customers accounted for the majority of online insurance sales: 47% were born in the 1980s while 33% were born after the 1990s – the most active online users buying insurance online are young families.3 While many other markets are embracing innovation and technology at a strong pace, China will rise to be the world leader in InsurTech.
Why Can China Become the Leader in InsurTech?
Most developing countries cannot claim to be leading players in technology, where the technology meets at the intersection of an age-old industry, such as insurance. Yet, China can rightly ...
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