Chinese shoppers are rising their annual spending on insurance coverage premiums, with the nation’s rising family wealth and getting old inhabitants among the many principal progress drivers, a brand new report has discovered.
Half of Chinese households spent greater than 8,000 yuan ($1,100) on insurance coverage premiums in 2023, in accordance with the research, which was printed Tuesday.
Jointly produced by a analysis middle at Tsinghua University’s PBC School of Finance and Yuanbao Insurance Broker, a Beijing-based on-line insurance coverage platform, the report discovered that China’s wealthier households tended to spend extra on insurance coverage. Over 40% of high-income households stated they deliberate to spend greater than 20,000 yuan on insurance coverage within the subsequent yr.
The rising demand for insurance coverage is principally a results of China’s financial progress, with households wanting to guard their rising property, in addition to the nation’s quickly getting old inhabitants, which is pushing up demand for personal pensions and medical insurance coverage, stated Wei Chenyang, director of the China Insurance and Pension Research Center at Tsinghua University’s PBC School of Finance.
The complete worth of China’s main insurance coverage premiums reached 5.12 trillion yuan in 2023, a year-over-year enhance of 9.14%, in accordance with knowledge from the National Financial Regulatory Administration.
One of the fastest-growing market segments is on-line insurance coverage, with shoppers in all age teams changing into extra seemingly to purchase insurance coverage on-line in 2023, the report discovered. Consumers with excessive incomes, excessive schooling ranges, and houses in massive cities have been the more than likely to buy insurance coverage on-line.
This development is prone to proceed, with 82% of respondents saying that they deliberate to buy insurance coverage on-line sooner or later, in contrast with 76% who stated they supposed to make purchases through offline channels.
The hottest insurance coverage product in China final yr was crucial sickness insurance coverage, held by 60% of respondents. Commercial medical insurance coverage and basic medical insurance insurance policies have been additionally among the many commonest product lessons, held by 44% and 30% of respondents, respectively.
With speedy inhabitants getting old placing stress on China’s social safety system, shoppers are more and more trying to take out industrial pensions and long-term care insurance coverage. The report discovered that high-income middle-aged shoppers have been the more than likely to put money into industrial pensions, however folks of their 20s have been the more than likely to say they supposed to take out a coverage within the subsequent one to 2 years.
Changes in folks’s household constructions and existence are additionally elevating demand for beforehand area of interest merchandise comparable to property insurance coverage and pet insurance coverage. According to the report, 27% of Chinese pet house owners — principally younger, feminine shoppers — at present have pet insurance coverage, and one other 35% stated they deliberate to take out a coverage.
Chen Yimin, a 33-year-old Shanghai resident, advised Sixth Tone she had taken out a spread of insurance coverage insurance policies for her household, together with transportation accident insurance coverage, complete accident insurance coverage for the elderly, and home insurance coverage. She had purchased most of those merchandise on-line, as on-line insurers provided higher comfort, a bigger number of insurance policies, and extra versatile fee choices, she stated.
Last yr, Chen additionally took out pet insurance coverage after her 1-year-old canine was recognized with enteritis and required therapy that cost her 800 yuan. Chen at present pays an annual premium of 600 yuan per yr for pet insurance coverage.
“Even if it’s only basic coverage, it gives me peace of mind,” Chen stated. “Since purchasing it, my dog has not been sick, which is great.”
(Header picture: VCG)
