The report, titled China General Insurance: Key trends and Opportunities to 2022, highlights that health insurance, which contributes to about 30 per cent of total Chinese general insurance business, is the country’s fastest-growing line of business.
Indeed, direct written premium in health insurance, which registered a compound annual growth rate of 41.2 per cent between 2013 and 2017, is projected to grow at 16.1 per cent over 2017-22 – from $64.7 billion in 2017 to $136.6 billion in 2022.
Manisha Varma, Insurance Analyst at GlobalData, commented: “China’s ongoing demographic shift, with a decline in fertility and a rise in ageing, exerts pressure on the existing social healthcare system, which increasingly faces a challenge in terms of inadequate coverage and capacity. This is an opportunity for private insurers to tap into.”
It seems that private insurers are driving the momentum in terms of new product offerings in critical illness cover, as well as enabling online-based short-term insurance policies. And Varma adds that, by 2022, the share of health insurance is projected to reach 36 per cent of total general insurance business.
You can download the full report here.