China Car Insurance Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 90.59 Billion |
| Market Size (2029) | USD 118.74 Billion |
| CAGR (2024 - 2029) | 5.56 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Car Insurance Market Analysis
The China Car Insurance Market size in terms of gross written premiums value is expected to grow from USD 90.59 billion in 2024 to USD 118.74 billion by 2029, at a CAGR of 5.56% during the forecast period (2024-2029).
The revenue of the car insurance market in China has observed continuous growth over the years resulting in an increasing number of players entering the market to reap the existing margin. Passenger cars in the region occupy a significant share of automobile sales, resulting in car insurance emerging as a major product in the automobile insurance market. Private car ownership rates in China have observed continuous growth over the years, with more households purchasing and owning a car. In line with this, China's regulations requiring drivers to be insured with a minimum standard before driving is leading to an increasing number of car insurance policies being bought and sold.
The price of the car exists as a major factor while offering car insurance with the availability of high-quality safety standards, making them qualify for premium discounts. Sedans and SUVs exist among the car segment in the country, with more than 80% of the passenger car sales share, resulting in car insurance providers focusing specifically on these segments for their car insurance products. The insurance premium rate of the leading electric and hybrid vehicle market in China is significantly higher in comparison to internal combustion vehicles because of the higher loss ratio incurred by the insurance providers, making it an emerging car insurance segment in the country.
With rising digital innovations in the insurance market car insurance providers are offering their products through online websites and apps where the car owner can renew, buy as well as claim their insurance. The rising insurtech market in the country is further driving digital car insurance products. In addition, the launch of telematics-enabled car insurance products in the country is minimizing the existing asymmetric information and risk involved between the buyer and seller. These rising innovations and market trends are developing a positive growth environment for car insurance in China.
China Car Insurance Market Trends
Rising Road Traffic Accidents
Road traffic accidents in China have observed a continuous increase over the years, with Guangdong, Hubei, Guangxi, and Jiangsu existing among the regions in China having the largest number of road traffic fatalities. This is resulting in an increasing number of car owners protecting themself against these risks by purchasing car insurance products. With rising road traffic accidents and existing market conditions, People's Property Insurance, Ping An Property Insurance, and Pacific Property Insurance have emerged as car insurance companies in China, with a market share of more than 60%. Bad roads, Unskilled drivers, overspeeding, and drunken driving are among some of the factors affecting the frequency of road traffic accidents in the country with people saving themself from these uncertain risks by paying insurance premiums in their car insurance policy. Car insurance products offered in China cover cars rather than drivers with other insurance products, including drivers and third-party liability insurance.
Rising Digital Innovation in Car Insurance
Car insurance is among the most popular types of insurance coverage in China. Rising digital insurance with an increasing number of insurtech firms in the insurance sector is increasing the online premium income of car insurance providers in the country. With changing business models from the traditional offline sales channel between insurance companies and buyers, Self-operating platforms of mobile apps, company platforms, and third-party platforms centered around online sales and promotions have emerged, reducing the cost and improving the efficiency of car insurance products. Telematics or usage-based car insurance is emerging as an innovation in the car insurance market, which uses GPS and smartphone-based data to track the driving habits of the car owner based on which user-specific policies and premiums are generated, minimizing the asymmetric information between the insurance provider and insured. The Telematics insurance market in China exists with revenue of around USD 100 million, and the contribution of telematics car insurance to it is expected to increase over the coming period.
China Car Insurance Industry Overview
China's car insurance market is partially fragmented with a continuously increasing number of players in the market. Technology and product innovation in the market are leading to a wide range of car insurance products available to buyers with rising sales of cars in the country. Some of the existing players in the China car insurance market are China Life, China Taiping, PICC, Ping An of China, and CPIC.
China Car Insurance Market Leaders
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China Taiping
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PICC
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Ping An
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Bank of China
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Liberty Insurance
*Disclaimer: Major Players sorted in no particular order
China Car Insurance Market News
- May 2022: Auto Services Group Limited, which exists as a leading provider of digitalized auto services and auto insurance through Sun Car Online Insurance Agency in China, merged with Goldenbridge Acquisition Limited, a British Virgin Islands special purpose acquisition company.
- January 2023: China's auto insurance technology platform Cheche Group merged with the Prime Impact Acquisition I. Cheche Group exists as China's auto insurance company, digitizing the end-to-end insurance purchasing process, and Prime Impact exists as a company focusing on acquisition opportunities and building data-centric technology companies.
China Car Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Sales of Cars in the China
4.2.2 Increase in Road Traffic Accidents
4.3 Market Restraints
4.3.1 Increase in Cost of Claim
4.3.2 Increase in False Claims and Scams
4.4 Market Opportunities
4.4.1 Online Insurance Products Expanding the Car Insurance Sales
4.4.2 Demand for Customized Insurance Products by the Buyers
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Technological Innovations in China Car Insurance Market
4.7 Insights on Regulatory Trends Shaping the Market
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Coverage
5.1.1 Third-Party Liability Coverage
5.1.2 Collision/Comprehensive/Other Optional Coverage
5.2 By Application
5.2.1 Personal Vehicles
5.2.2 Commercial Vehicles
5.3 By Distribution Channel
5.3.1 Direct Sales
5.3.2 Insurance Agents
5.3.3 Brokers
5.3.4 Banks
5.3.5 Online
5.3.6 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Ping An of China
6.2.2 Bank of China
6.2.3 China Taiping
6.2.4 PICC
6.2.5 Liberty Insurance
6.2.6 Anbang Insurance
6.2.7 Sunshine
6.2.8 Allianz
6.2.9 Sinosafe
6.2.10 Zurich General Insurance*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
China Car Insurance Industry Segmentation
Car insurance is a contract between the car owner and the insurance company where the car owner agrees to pay a fixed premium rate over some time for protection against financial loss in the event of any damage or loss to the car. Rising digital insurance and product innovations in the market are making car insurance products more inclusive among car owners.
The study gives a brief description of the China car insurance market and includes details on car insurance premiums, investment by car insurance companies, and the launch of new car insurance products.
The Chinese car insurance market is segmented by coverage, by application, and by distribution channel. By coverage, the market is segmented into third-party liability coverage and collision/comprehensive/other optional coverage. By application, the market is segmented into personal vehicles and commercial vehicles. By distribution channel, the market is segmented into individual agents, brokers, banks, online, and other distribution channels.
The report also covers the market sizes and forecasts for the China car insurance market in value (USD) for all the above segments.
| By Coverage | |
| Third-Party Liability Coverage | |
| Collision/Comprehensive/Other Optional Coverage |
| By Application | |
| Personal Vehicles | |
| Commercial Vehicles |
| By Distribution Channel | |
| Direct Sales | |
| Insurance Agents | |
| Brokers | |
| Banks | |
| Online | |
| Other Distribution Channels |
China Car Insurance Market Research FAQs
How big is the China Car Insurance Market?
The China Car Insurance Market size is expected to reach USD 90.59 billion in 2024 and grow at a CAGR of 5.56% to reach USD 118.74 billion by 2029.
What is the current China Car Insurance Market size?
In 2024, the China Car Insurance Market size is expected to reach USD 90.59 billion.
Who are the key players in China Car Insurance Market?
China Taiping, PICC, Ping An, Bank of China and Liberty Insurance are the major companies operating in the China Car Insurance Market.
What years does this China Car Insurance Market cover, and what was the market size in 2023?
In 2023, the China Car Insurance Market size was estimated at USD 85.55 billion. The report covers the China Car Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the China Car Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Car Insurance Industry Report
Statistics for the 2024 China Car Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Car Insurance analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
