China Insurtech Sector: Growth Drivers and Challenges
Growth Drivers
- Increasing Use of Smartphones- It is estimated that more than 160 million 5G devices were sold in 2020, making up roughly over 50% of all smartphone shipments.
Smartphone apps could assist insurance businesses in gathering information that was previously out of reach, such as usage and behaviour data. They could then use this information to enhance their risk assessments and develop new insurance product lines. Even with traditional insurance products, going digital will aid an insurance company's growth and competitiveness. - High Investments in Digital Transformation- In order to expedite the development of everything from 5G wireless networks to artificial intelligence, the Chinese government, led by President Xi Jinping, announces it would invest an estimated USD 1 trillion over the course of six years into the local digital economy (AI).
- Rapid Growth in Internet User- It was estimated that China would have 989 million internet users by the end of 2020, according to statistics provided by the government's China Internet Network Information Center (CNNIC).
- Growing Traditional & Online Insurers - Online health insurance premium growth in China increased to approximate 18% in 2021 from the year before.
- Lower Insurance Premium Rates Which Leading a Rise in Policymaker- In comparison to the previous two years, China's average premium has reduced, according to the 2018 edition of Pacific Prime's Cost of Health Insurance report. From 2016 with approximate USD 10,880 and 2017 with about USD 10,690 to an about USD 9,63o, we have observed a little decrease in the premium in China.
Challenges
- Security Concerns
- Lack of Skilled Professionals in Insurance Companies
- Regulatory Restrictions
China Insurtech Market: Key Insights
|
Base Year |
2021 |
|
Forecast Year |
2022-2031 |
|
CAGR |
36.88% |
|
Base Year Market Size (2021) |
USD 211.7 Billion |
|
Forecast Year Market Size (2031) |
USD 4760.0 Billion |
|
Regional Scope |
|
Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
The major factors driving the growth of the market are increasing use of smartphones, high investments in digital transformation, rapid growth in internet user, and others.
The market is anticipated to attain a CAGR of 36.88% over the forecast period, i.e., 2022 – 2031.
Security concerns, lack of skilled professionals in insurance companies, and regulatory restrictions are some of the factors expected to hinder the growth of the market.
The major players in the market are China Pacific Insurance Co.,Ping An Insurance (Group) Company of China, Ltd., People’s Insurance Company of China,Zhongan Insurance,Yi’an Property Insurance Co., Ltd., and more.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by component, product, technology, and by end-use industry.
The big data & machine learning is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.
