Insurance industry is experiencing rampant growth as more consumers purchase coverage
China’s insurance industry is experiencing a period of rapid growth, according to the China Insurance Regulatory Commission. The organization has released information that showed that the country’s insurers have recorded a total premium income of $320.5 billion in 2014. Premiums revenue has grown by 17.5% last year, the highest margin it has grown by in the past three years. The insurance industry has been experiencing a surge as more people purchase coverage in several different sectors.
Consumers are using their mobile devices to purchase coverage across several sectors
According to the information from the China Insurance Regulatory Commission, the total assets of the insurance industry have reached $1.6 trillion. The industry has managed to reach its asset goal one year ahead of schedule under the country’s Five-Year Plan. Notably, sales of insurance policies through mobile devices has become quite common. Many consumers are using their smartphones to purchase insurance products, both at physical locations and online.
Online channels provide smaller insurers with a way to compete in China’s insurance market
Online channels have helped small and medium-sized insurers connect with consumers in a more effective manner. These organizations do not have the resources needed to compete with their larger competitors, but the Internet has helped even the playing field. Because a growing number of consumers are looking for coverage on the Internet, insurers with an online presence are beginning to attract more attention. The fact that consumers can compare prices for policies they find on the Internet easily has created more competition in the insurance industry.
Life insurance sector experiences slower growth due to new regulations introduced earlier this year
While China’s insurance industry is growing, growth has been slowed by regulations that were introduced earlier in the year. These regulations target insurance policies being sold through the country’s banks. The regulations have been particularly harsh on the life insurance sector, which is becoming more popular for consumers throughout the country. Policies sold through banks accounted for 39% of all life insurance coverage sold in China in 2014.