China has overtaken the U.S as the largest global insurance market in terms of brand value, according to valuation consultancy Brand Finance, in part due to the continued growth of Chinese insurance giant Ping An.
Ping An, which outpaced Allianz to become the world’s most valuable insurance brand in 2017, grew its brand value by 93% to US $50.5 billion last year, Brand Finance said.
This contributed significantly to China’s total insurance brand value of $98.2 billion, leaving the U.S in second place with a brand value of $78.1 billion.
Analysts suggested that Ping An has been reaping the benefits of its investments in technology, as 36% of its 40 million new customers in 2019 were won through online services.
Chinese insurance brands Ping An, China Life and AIA also hold the top 3 global spots in the brand value rankings for life insurance, Brand Finance observed.
China Life and AIA each grew their brand value by 51% to $21.8 billion and $15.5 billion, respectively, last year, with AIA in particular benefiting from the launch of its blockchain-enable bank assurance platform.
“Ping An, China Life, and other Chinese insurance brands are once again benefiting from the growth of the middle-class consumer and their own ability to tap into the power of technology to sharpen their business,” said David Haigh, CEO of Brand Finance.
“Whilst cybersecurity incidents and business interruptions dominate risk landscapes for companies of all sizes in the global market, innovative products, new health insurance products and good use of technology have made this a positive year for many insurance brands,” he added.
However, only one Chinese brand, China Re, features in the reinsurance sector top ten, sitting in 6th place with a brand value of $1.1 billion, boosted by its acquisition of Chaucer from The Hanover Insurance Group last year.
The top three places in the reinsurance table are filled by Swiss Re (with a brand value of $4.2 billion), Hannover Re ($2.7 billion) and Munich Re ($2.4 billion), according to Brand Finance’s data.
Ping An also tops the table in the P&C insurance, with Allianz in second place, followed by U.S companies GEICO, Allstate and Progressive.
GEICO’s brand value rose 34% to $8.8 billion, meaning the company jumped four places to join the top ten list for the first time.
The most notable new entrant this year was South Africa’s Discovery, which received a brand strength index score of 85.97 out of 100, making it the world’s second strongest insurance brand, according to Brand Finance.