Thanks to China’s effectiveness in implementing measures to help its economy rebound from the wide-ranging impacts of COVID-19, Swiss Re expects the country’s insurance industry growth to be the strongest worldwide in 2020.
Furthermore, the reinsurer sees double-digit growth in the country to resume in 2021.
According to analysis from a Swiss Re Institute report, China’s insurance industry is performing robustly, with premium growth returning quickly to its pre-pandemic trend rate.
Health insurance maintained a 20% growth rate in the first half of the year as demand surged while the transition to online distribution channels for insurance products also continued at pace.
Swiss Re analysts expect the industry to benefit from the economic recovery due to a combination of strong regulatory support and rising consumer risk awareness.
The insurance regulator has issued new guidelines to support insurers that include targeting 80% digitalisation of certain P&C lines by 2022 to promote online insurance business.
There have also been moves to raise the upper limit of the equity allocation in qualified insurers’ asset portfolios to 45% from 30% to help mitigate the impact of low interest rates.
Additionally, there’s been a focus on promoting the development of reinsurance business, particularly by encouraging international reinsurers to participate.