categorytitle / Research Update .
  • time : 10:19:57
  • Date : Wed Nov 17, 2021
  • news code : 5030
The Study of Insurance Industry of China
Having a huge and growing population demanding insurance coverage, China has been highly capable of creating an immense opportunities in relation to insurance growth and development. Raising awareness, improving insurance literacy, and the state inclination to invest in the insurance industry have been some of the few prominent reasons behind such developments in China.

According to a report prepared by the Public Relations Office at IRC, understanding and studying the insurance industries of other countries, not only gives an impression of the general characteristics of the insurance industry of the given country, it can be regarded as a benchmark to alter our own insurance industry. In this regard, among the emerging markets, China, due to its desirable economic conditions and standing in the second top best economy of the world and having many untapped insurance opportunities, has always attracted attention.

Thus, the third report of the world insurance industry review series is devoted to the study of China. Prepared by Zahra Bardal, Director of Insurance Systems Studies Desk in collaboration with Vahideh Noorani, Director of Innovation Desk, the report reviews the registered active insurance companies in China and investigates the relevant institutions, rules and regulations, and digital transformation in this country.

Based on the findings of the study, observing the insurance penetration rate and density indices of China, it can be said that they are the major indices that indicate the development and the foreseeable growth of China among other countries of the world. This has made the country to stand among the first 20 countries having the highest insurance penetration rate. However, despite having a relatively desirable economic condition and having the highest share of the gross written premiums in the world, this figure is below global average that can be traced in the limited demand for the insurance products as saving and investment instruments.

Recently, while the domestic insurers are struggling with their market position, China is emerging from isolation due to the foreign insurers’ presence in recent years in the country. The country not only welcomes the new entrants from among foreign companies having high capabilities and being effective, supports the international activities of the Chinese insurers as long as their risks are manageable. In China, the insurance regulations are evolving and rapidly changing in order to reach the international standards. Some of the active insurance institutions in China are China Insurance Regulatory Commission (CIRC), some industries associations, training and research institutes, and a guarantee fund.

The report adds that the recent revisions and amendments in the insurance-related laws and regulations of the country indicate the well-preserved dynamism of the regulator and its ambition to adapt with the recent changes in the global insurance ecosystem. Holding the second rank in the field of digital transformation in the insurance industry after the U.S shows the high penetration of internet and mobile phones in this country given its large population. There has been growing number of investments in the insurtechs and the information and communication technologies are being exploited and integrated vastly in China and many supporting institutions are solely established to support the development of the insurtechs in the country. The most recent development is related to the setup of two regulatory sandboxes in two major cities of the country.

Those interested to access and download the Persian full text of the study, please visit

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