The development status of China s insurance industry in recent years

In 2019, the assets of China's insurance industry grew steadily. As of the end of 2019, the total assets of the insurance industry were one trillion yuan, a year-on-year increase. As of the end of 2019, the balance of funds used by the insurance industry was one trillion yuan, an increase from the end of 2018, and the growth rate increased by one percentage point compared with 2018.

Insurance density and insurance depth have increased

As of the end of 2019, the total assets of the insurance industry were one trillion yuan, a year-on-year increase, and the growth rate increased by one percentage point compared with 2018. Among them, the total assets of life insurance companies were trillion yuan, a year-on-year increase; The total assets of property insurance companies were trillion yuan, a year-on-year decline; The total assets of reinsurance companies were 426.1 billion yuan, a year-on-year increase. The insurance density and insurance depth were 3,046 yuan and 3,046 yuan respectively, an increase of 321 yuan and percentage points respectively compared with 2018, and there is still a big gap compared with the international level.

Asset allocation is basically stable

As of the end of 2019, the balance of funds used by the insurance industry was one trillion yuan, an increase from the end of 2018, and the growth rate increased by one percentage point compared with 2018. In asset allocation, the proportion of bank deposits and other investments decreased, while the proportion of bonds, ** and **investment** increased.

Affected by the recovery of the market throughout the year, the investment income of the insurance industry rose to 882.4 billion yuan, a year-on-year increase; The average rate of return on the use of funds increased by one percentage point year-on-year, but it was still lower than the average rate of return in the past 10 years.

The growth rate of premium income of life insurance companies rebounded

In 2019, general life insurance companies recovered growth, with a significant rebound in growth rate, and premium income increased year-on-year, a significant increase of one percentage point compared with the same period in 2018. In 2019, the premium income of life insurance companies increased year-on-year, and the growth rate increased by one percentage point compared with 2018. The annual surrender rate of life insurance companies decreased by one percentage point compared with 12018.

Benefiting from factors such as a sharp increase in investment income and a decline in surrender and compensation expenses, life insurance companies achieved a year-on-year increase in pre-tax profit of 100 million yuan in 2019, and achieved a net profit of 100 million yuan in 2019, a significant year-on-year increase under the favorable pre-tax deduction policy for handling fees and commission expenses of insurance companies.

— The above data and analysis are from Qianzhan Industry Research InstituteAnalysis Report on Market Prospect and Investment Planning of China's Insurance Industry.

With the implementation of the Insurance Law and China's accession to the WTO, China's insurance industry has gone through four stages: recovery, development and rapid development. In recent years, the growth rate of the insurance market has slowed down, the share of property insurance and life insurance has declined slowly, the share of health insurance has increased, and the structure of the insurance market has been significantly differentiated.

China's insurance industry is in a period of rapid development

Since China's accession to the WTO, China's insurance industry has gone through four stages: recovery, development, and rapid development. At present, it is in a period of rapid development.

There are many participants, and the number of Chinese insurance companies is growing rapidly

Participants in China's insurance industry mainly include insurance groups, Chinese insurance companies and Sino-foreign joint venture insurance companies. According to the data of the National Bureau of Statistics, from 2010 to 2019, the number of institutions in China's insurance system has increased year by year, from 142 to 235, of which the number of Chinese-funded insurance companies has increased from 81 to 160, and the number of provincial branches has also increased significantly, and the insurance industry has developed rapidly in China. The number of Sino-foreign joint ventures did not change much, with only 8 increases.

Total assets continue to expand

From 2011 to 2020, the total assets of China's insurance industry continued to expand, from trillion yuan to trillion yuan, with an average annual compound growth rate. In terms of growth rate, the growth rate of total assets of China's insurance industry has slowed down significantly since 2017, to about 10%, and the growth rate of assets of China's insurance industry in 2020 will be.

Premium income and claims expenses have been increasing year by year

From 2010 to 2020, China's primary insurance premium income has been increasing year by year. In terms of growth rate, the growth rate of China's insurance premium income showed an upward trend from 2011 to 2016, declining for two consecutive years after 2016, but showing a rebound trend in 2019. In 2020, the annual primary insurance premium income was 4,525.7 billion yuan, a year-on-year increase.

From 2010 to 2020, the insurance industry's compensation expenditure increased year by year, with the largest increase in 2013, for example, after 2016, the growth rate of insurance compensation expenditure declined, and the growth rate remained between 4% and 10% from 2017 to 2020. In 2020, the original insurance compensation expenditure was 1,390.7 billion yuan, a year-on-year increase.

The share of property insurance declined, and the proportion of health insurance increased

From 2011 to 2020, the premium income of various types of insurance in China has been growing. Among them, the proportion of life insurance premium income in China's original insurance premium income has always been at the highest level, while the proportion of accident insurance premium income has remained low. In 2020, the proportion of property insurance in China's total premium income is; The proportion of life insurance is; The proportion of health insurance is; The proportion of accident insurance is:

Major brands in the insurance industry:Total premium income of China's insurance industry, China's premium income structure, China's insurance depth, and insurance density.

Ranked second in the world in terms of premium income

In the past 15 years, the total premium income of China's insurance industry has generally shown an upward trend, and the promulgation of the "National Ten Measures" in 2006 and 2014 and the "New National Ten Measures" in 2014 has promoted the rapid growth of the insurance industry. In 2021, under the background of the new crown epidemic and the comprehensive reform of motor insurance, the trend of increasing the original premium income year by year was broken, and the total annual premium income was 4.49 trillion yuan, a year-on-year decrease of 35.7 billion yuan.

Since 2017, China's premium income surpassed Japan's, China has occupied the position of the world's second premium market for five consecutive years, and is gradually opening up the distance from Japan, although there is still a large gap with the United States, which ranks first, but China has become the backbone of the world insurance market.

Note: Some countries and regions have not yet released 2021 premium income data.

There is an imbalance in the income structure

From the perspective of premium income structure, in 2021, China's life insurance premium income will be 3,322.9 billion yuan, accounting for 74%, and property insurance premium income will be 1,167.1 billion yuan, accounting for 26%.

There is still room for growth in insurance density and insurance depth

Since 2010, China's insurance density has grown rapidly, and the gap between China's insurance density and the global average insurance density has been narrowing. In 2021, China's insurance density was US$520, compared to the global average of US$661.

In the past five years, the global average insurance depth has generally shown a slight and steady downward trend, while China's insurance depth has also shown a fluctuating downward trend, and the gap has not narrowed compared with the global average. In 2021, China's insurance depth is the global average insurance depth, while the insurance depth of developed countries such as the United States and the United Kingdom remains above 10%, and China's insurance depth still has a lot of room for growth.

The above data refer to the Prospective Industry Research InstituteAnalysis Report on Market Prospect and Investment Planning of China's Insurance Industry.

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