China: Insurance market gains in global market share
Source: Asia Insurance Review | Aug 2021
China continues to take a growing share in terms of total premiums, reaching 10.5% of the global insurance market last year, according to Swiss Re’s latest sigma report titled ‘World insurance: the recovery gains pace’.
The mainland Chinese non-life insurance market grew by 4.4% last year, dominating emerging market growth after a 15% expansion in medical insurance business, although Chinese motor premiums declined by 3% after de-tariffication of the motor market, alongside a recent decline in new car sales. Swiss Re expects this to push down rates for motor insurers, resulting in a decline in premiums of around 7% in real terms in 2021.
The non-life insurance market will rebound to double-digit growth in 2022 (10.5%), driven by short-term health insurance fuelled by consumers’ rising risk awareness and strong policy support as the government seeks to expand access to healthcare, says the report.
Overall, the global insurance market continues to consolidate around the US, China and Japan. These were again the world’s top three insurance markets by size in 2020, together accounting for almost 58% of the global market, higher than one year ago (2019: 56%). A