According to GlobalData, a prominent data and analytics company, the Chinese property insurance sector is anticipated to soar at a compound annual growth rate (CAGR) of 12.1% over the period of 2024 to 2028.
This growth trajectory is expected to elevate the industry from CNY271 billion ($40.5 billion) in 2024 to an impressive CNY428.3 billion ($67.7 billion) by 2028, measured in terms of gross written premiums (GWP).
An analysis from GlobalData’s Insurance Database points out that the Chinese property insurance domain is poised to witness a robust expansion of 12.3% in 2024.
This growth is underpinned by favourable regulatory advancements and a surge in demand for fire and home multi-risk property insurance policies, attributed to frequent natural catastrophic (NatCat) events.
Manogna Vangari, an Insurance Analyst at GlobalData, highlights the significant growth observed in 2023, a notable 15.9% increase, driven by heightened demand for policies covering NatCat events, burgeoning interest in agriculture insurance, and substantial investments in infrastructure projects.
This upward trend is expected to persist in 2024, further propelling property insurance growth.
The report underscores that agricultural insurance stands as the largest product within the property insurance segment, with an estimated growth rate of 15.3% in 2024.
This growth is anticipated to be fueled by the escalating frequency of extreme climate conditions such as heatwaves and heavy rains in China.
Regulatory reforms aimed at enhancing online operations and fortifying the actuarial system of agriculture insurance are anticipated to augment agricultural insurance uptake, thus bolstering property insurance growth.
Noteworthy initiatives include the issuance of new standards by the Insurance Association of China in May 2023 and new regulations introduced by the China Banking and Insurance Regulatory Commission in April 2023.
Despite the optimistic outlook, challenges loom in the form of escalating NatCat losses and economic uncertainties.
However, the burgeoning demand for property insurance is expected to be sustained by the surging construction activities in the country, further propelled by government-led infrastructure investments.
In conclusion, the Chinese property insurance segment appears primed for substantial growth, buoyed by regulatory tailwinds, increasing demand for agriculture insurance policies, and the flourishing construction sector.
Nonetheless, insurers are bracing for the challenges posed by NatCat events and geopolitical uncertainties in the coming years.
The Chinese property insurance industry is poised to play a pivotal role in the country’s risk management landscape, offering resilience and protection against unforeseen adversities.
