China is directing a greater share of newly added national medical insurance funds towards primary healthcare institutions as part of efforts to reduce patients' out-of-pocket costs and strengthen community-level healthcare.
Chinese tax residents are required under existing law to pay individual income tax on their worldwide income, including taxable returns from overseas insurance products. This clarification from the State Taxation Administration (STA) comes amid market discussion surrounding insurance policies purchased in Hong Kong.
Current health management models offered by insurers in China are concentrated on treatment-related services, while prevention, continuous health management and long-term care are relatively underdeveloped, according to a study by Swiss Re Institute (SRI).
Tax authorities in several parts of China have started to apply personal income tax rates of 20% on returns from Hong Kong insurance policies, including dividend payouts and interest earned on prepaid premiums, according to a report by Reuters.
China's unlisted property and casualty (P&C) insurers reported steady premium growth but weaker profitability in the first half of 2026, highlighting mounting pressure on underwriting margins and investment returns despite continued increases in insurance business income.
China's unlisted life insurance sector has reported a dramatic surge in net profits for the first half of 2026, driven largely by a strong second-quarter equity market recovery and the implementation of new accounting standards.
Industry analysts warn that market corrections in China in July 2026 may have already wiped out much of the short-term investment gains made by unlisted life insurers in the first half of the year, highlighting the sector's increasing vulnerability to capital market fluctuations amid a prolonged low-interest-rate environment.
BYD Insurance, the insurance arm of Chinese electric vehicle giant BYD, is rapidly expanding its presence in China's auto insurance market.
China's 10 major bank-affiliated life insurance companies posted a massive surge in earnings during the first half of 2026, driven by favourable market conditions and accounting changes.
China's National Financial Regulatory Administration (NFRA) and the Ministry of Finance (MOF) have reached agreement on revised measures governing professional liability insurance for accounting firms, with the new rules expected to be issued soon.