China Car Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

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

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.