China insurance industry to hit $313bn in 2025: GlobalData - Reinsurance News
Motor insurance was the largest insurance line accounting for 60.7% share of the general insurance DWP in 2020, with flat growth of 0.7% due to changes in regulations, which lowered mandatory motor liability premium prices by up to 50%.
Personal accident and health (PA&H) and property insurance were the second and third-largest general insurance lines with a share of 12.2% and 11.3%, respectively, in 2020.
PA&H insurance provided by general insurers recorded the highest growth of 21.2% in 2020 and benefitted from the rising medical expenses and tax exemptions. This insurance line is expected to maintain double-digit growth in 2021 and 2022.
Property insurance also recorded a strong growth of 14.0% in 2020 and was majorly driven by agriculture insurance which accounted for over 50% of the property insurance DWP that year, GlobalData reports.
Analysts also noted that government subsidies on premium prices and insurance to cover frequent cat-cat losses supported the growth of agriculture insurance in China.
And new product development initiatives such as the recently proposed grain insurance are expected to enhance the coverage of agriculture insurance over the coming years.
Overall, property insurance is expected to grow by over 11% in 2021 and 2022, helped by growing demand from the agriculture industry, as well as large-scale projects from belt-and-road and renewable energy projects.
“Growth in the general insurance industry over the coming year will be hinged on its non-motor lines of business as motor insurers’ profitability will remain challenged with the stressed automobile sector battling supply chain issues, regulatory restrictions on premium pricing and new pandemic outbreak,” Mitra concluded.
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