Market Trends of China Life and Non-life Insurance Industry
Digital Transformation is Driving the Market
The digital economy is also developing rapidly, and consumers have quickly adapted to digital living. The value of the digital economy reached USD 7.1 trillion in the previous year, accounting for nearly 40% of China's GDP, and online activity has accelerated in response to the social distancing induced by the COVID-19 pandemic. L&H Insurance has undergone significant digitalization across the value chain from distribution and underwriting to claims. Over 80% of new L&H policies are underwritten by online digital applications from all distribution channels.
Life Insurance is Dominating the Market
China's Life and Health (L&H) insurance market is growing and introducing a variety of more diversified insurance products. This covers such as critical illness and medical expenses targeted to specific consumer segments. L&H policy terms are continuously improving with clear and detailed coverage specifications, a response to competitive market dynamics and regulatory requirements. The digital economy is also developing rapidly, and consumers have quickly adapted to digital living. These developments are creating a strong rationale for China's L&H insurers to deepen and enhance the capability of digital underwriting, which aims to leverage the fast-increasing accessibility and availability of data to generate insightful applications through computing power and algorithms.
