China: InsurTech premiums to grow by more than 4-fold to US$160 bln in 2020
Source: Asia Insurance Review | Dec 2016
Total InsurTech premiums in China will exceed CNY1.1 trillion (US$160 billion) by 2020 from CNY250 billion in 2015, forecasts global management consulting firm Oliver Wyman and Chinese online insurer ZhongAn in a joint report.
The assessment is that InsurTech in China will not only expand in digital distribution channels and through technology-enabled innovation, but also through innovative insurance practices that serve particular needs in online ecosystems.
The report said that the speed of growth and key drivers for each segment will vary:
- Online distribution of traditional insurance products (eg online auto insurance sales): CNY747 billion.
- Within this segment, non-life insurance products will grow at a faster pace than life products.
- Technology enabled upgrades of existing insurance products (eg new health insurance policies or prices based on wearable devices, telematics): CNY197 billion.
The main contributions will come from auto and health insurance products. Technological advances in areas such as telematics and precision medicine are forecast to be significant drivers of GWP growth in this segment, taking share from traditional business models
- Ecosystem oriented innovation of new insurance products (eg shipping return insurance, flight delay insurance): CNY202 billion.
E-commerce and travel ecosystems are expected to be the main contributors in this segment due to their sheer market size and the growing consumer desire to insure against risks related to these ecosystems.